Why Your Client’s Budget isn’t Your Problem
Let’s talk solid hard cash. Or a regular direct debit. However your business accepts payment really…
Money isn’t the be-all and end-all, but it is important. Despite its importance, it’s a grey area, with pricing often being an area most businesses struggle with.
“Pricing Panic” is a common problem, “Am I charging too much”, “Am I not charging enough”, etc. It can be difficult to gauge, especially when you are trying to win work. It can be hard not to give into negotiations and reduce your price.
A perfect example of this is my old friend Pauline. One of Pauline’s jobs is to deliver the local parish magazine. The magazine costs the princely sum of 25 pence, yet Pauline was telling me how she’s owed two years worth of money from one guy. 2 years?!
And that’s only a 25 pence service! Which just goes to show there are people out there who will moan about the price, or refuse to pay, whether you’re charging 1000 pounds, 100 pounds, 10 pounds or in this case, just 25 pence.
Moral of the story – Stay strong with your pricing and don’t be put off by your client’s budget!
Keep the change, ya filthy animal
As long as you’re not in the habit of ripping people off, if you are charging for the value you offer,
you have to remain steadfast. Now if someone says to you, “Okay, you’ve offered me a three-month deal at 100 pounds a month, what would you do if I commit to six months or a year”, that’s a lot different. That is where maybe you can have some room to negotiate.
However, if you’re selling a widget, or service, at a price and you know that you’re putting all
your experience into it, stick with it. Your price must factor in the time, effort, dedication, and potential sacrifice that goes into the work you do. Don’t compromise on that. Know your worth.
It’s not you, it’s them
The thing is, it’s not about your price, it’s about that person’s budget.
If you are charging fairly and they still aren’t happy, it’s not your price, it’s the fact that they can’t afford you.
And there’s a big difference between you being too expensive and potential clients not being able to afford you. They wouldn’t go into a shop and ask for a product to be cheaper, so they can’t do that for your business either.
It’s almost an automatic reaction to drop your price to win business, but you decided on your price for a reason. There are many factors that go into it, not just your service or product. So, you have to remain steadfast because as soon as you start trying to compete on price, it is a race to the bottom.
Do it once and do it well
Get your pricing nailed and then it’s done. Cement what your outgoings are, what your time is worth, how much of your time will be taken up, whether any other team members are involved and their monetary value, etc.
All of that has to go into forming your price and when it does, stay strong. The price is the price and don’t let anyone tell you differently.
If pricing is an issue in your business, and you’re finding that even though you think it’s a fair price but people aren’t biting, do hop onto a discovery call with us – apply here.
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