The other day, my friend and I were having lunch when he suddenly asked, “Kevine, what do you do when your client thinks you are too expensive?” To be honest, I did not expect that question from him at that time.
We had a protracted discussion over this issue and I am going to share with you some key points from that conversation.
So, here we go…
You finally got an invite to a job interview. You have set everything in place and made adequate preparations for any eventualities.
Everything is going fine until you hear the client say those words, “We’ve really liked your work but we are afraid your quote is too high. Your services are too expensive.”
You remain tight lipped. You don’t know what to say.
Deep down in your heart you think, “How can they say that?” You swallow hard.
Usually, price is not the biggest contention if your quality really stands out. Recognizing that it is very rare for two different people to offer the exact same solution to a problem, your client could be using the high price excuse to put you off politely.
Objections are inevitable in any type of setting. You must master to demonstrate the value you will provide and in so doing, convince the client to accept your bid.
In fact, I have previously covered the techniques you can use to convince the client to accept your bid, so, I will not write about it again here.Always demonstrate to the client the value your service will provide. #handlingobjections Click To Tweet
Some clients will pull up the cost objection when they are no longer interested in the service you are selling. Others will use that objection when they feel the problem they are trying to solve can wait.
It is a delaying tactic they use to see if they can find other options. They do not want to tell you that in your face and they feel it is more polite to base their pulling out due to cost.
Additionally, it takes away the mental burden of guilt they would feel if they would end up with poor quality work by hiring a cheaper option.
In other instances, a client thinks you are too expensive when they cannot see the unique value your services will add to their business. Essentially, you are offering a common place service at a premium service and the client does not see the reason he/she should hire you over other bidders.
What do you do when the client thinks you are too expensive?
There are many things you can do when the client thinks that your price is too high. Where I come from, if the point of contention in a transaction is on the price, the parties to that transaction always negotiate until they reach an agreement.
I am going to share with you some of the techniques you can use to handle objecting clients.
1. Agree With Them, Then Demonstrate Value.
This may sound irrational but it is an effective way of handling an objection. When you have proposed your services to the client and they come back with “you are too expensive” dossier, simply say, “Yes, it is true.”
After breaking the ice, it is time to itemize your services and point out the unique value proposition in your proposal. Demonstrate to the client that the experience you have and your way of solving the problem is superior.
Do not mistake me, though. I am not saying you should go out and start charging outrageous rates for your services. Look at the market rate and do your pricing accordingly.
Listen, you are the expert. Justify your bill and most certainly bag the cash. The secret lies in offering exceptional quality of service and standing behind that quality. Demonstrate to the client that you are looking out to their best interest.
If your service solves the client’s problem in the most efficient way, they should have no problem paying you what is commensurate with that level of expertise.
2. Ask Your Client, “Too Expensive Compared to What?”
When written, it sounds very aggressive to ask the client such a question. You can adopt a friendlier approach because people have different temperaments.
You could ask them, “What makes you say that?” When you do that, you use their energy to wrestle them. When you disarm them in this manner, you stand a higher chance of winning them over.
If they are genuine, they will open up to you. For instance, they would tell you that even though your work stood out from the rest of the bidders, their current budget would not allow them to work with you on the current project.
By opening up, they will ask questions and you will have the opportunity of addressing all their objections comprehensively. You will get their full attention and a perfect opportunity to demonstrate value.
Even if you don’t end up working on the project, the client will have you in mind for future projects because you have had the opportunity to market your value.
If the client thinks that your services are expensive simply because other bidders are in a race to the bottom, demonstrate the quality of your services and let the client choose.
You do not want to work with someone who is looking for cheap things.
Maintain high level of quality and you will meet your ideal clients in due time. Those who are looking for the best quality are willing to pay for it.
3. In Some Cases, Silence is Golden. Use It.
Perhaps this is the most overlooked technique in handling objections. When you are confident about the quality of your work, you may just keep quiet when a client thinks your services are too expensive.
Just forget about the client who cannot afford your services and continue prospecting. Convince yourself that the job was not yours and forget about it.
In some cases, clients who write off some bidders end up coming back to them. When this happens, you will not be negotiating about the price because they already know what to expect.
I am not saying that all the clients who initially think your services are expensive will come back to you. In most cases, you never hear from them again.
The main issue here is about building your brand. Your brand should be known for certain principles. Inculcate them from the onset.
If you consistently get clients who cannot afford your services, change your approach or the marketplace. You could be selling excellent services to the wrong target or you just need to change the lake from where you fish.
4. See if You Can Work With Their Budget
Sometimes, the clients put up an estimated budget to guide the bidders. There is always room for adjusting the figure to accommodate the volume of work required to achieve the desired results.
If your client says they are willing to spend $100 on a project, it is not cast on stone that they will end up spending that money on the project. That budget is subject to change, every budget planner know that.
You can audit the scope of work and see if you can accommodate them in your budget as well. If things can work out, you both win.
One way you can earn more from a client who thinks your services are expensive is to get long-term work with them. If they can guarantee volumes of work, then you can take the project based on some predetermined terms.
A client who thinks your services are expensive most certainly likes your work. They are in a buying mood and if they can get a deal they cannot resist, you are in business.