How to Deal With Pricing Issues ?

Hi Thomas,

What have you done to make your higher price a great value?

When my wife started her petsitting business, she took all the proctored exams to become "Certified" by the two national petsitting organizations in the US.

That allowed her to advertise "The ONLY petsitter in the area Certified by both NAPPS and PSI". This alone explained the higher rates and her other premium features made loyal customers. She had to keep raising her rates because of the number of people calling for service. She started in 2006 and in 2008 made $42000US working alone.

If potential prospects don't understand what you do for their animals, it may take some education. Or maybe a few scripts. My wife used this script when asked if she would do it for less:

"I am not sure what area of service I could reduce in order to lower my prices. My clients want premium service for their babies. If you don't want a loving, caring, and attentive petsitter, we probably aren't a match..."

Hope that helps.

Mark

I send them this photo...

This has always been my motto and my practice for 50 years:

"Those who acquire my work adopt my Art because they are my children. I don't discount or make special prices for anyone––I'm protecting those who have collected my work in the past because they are my extended family. Every Artist has the responsibility of teaching the world that they are going to respect, value, and treasure their Art. If the creator of the Art doesn't respect, value, and treasure their work, it's unlikely anyone else ever will either…"

If I hear anything after that, I remind them that this is NOT Cowboy boots, shoes, or even high end fashion accessories, "It's Fine Art."

For the real persistent: "I'm not looking for any favors or bargains, and I'm not going to do business with anyone who is…"

It comes down to remaining loyal to your own experience. Besides that, people will bow to the voice of authority and obey when they are commanded. I say this since the kind of people who are always looking for discounts "Want you to set strong limits." Just like children, they often just want to know where the limit is. When you set strong limits, they offer respect in return––there is no love where there is no respect…

In the long run, it's better that a hundred people respect you, than for you to be un-faithful to your own best interest. Try going into a Mercedes Dealership and asking for a discount… Hmmm!

NEVER cater to low ballers. NEVER lower a price that you’ve knowingly set to reflect your work and if you’re actually doing “work” (meaning creating something not sitting at a desk trying to work numbers to skim profit and steal from clients) then you should explain the benefits of craftsmanship rather than cotow to their demands. Work should be paid, craftsmanship should be rewarded and tradesmen deserve a living.

Divert the conversation away from price to the excellent service you give, the way you are going to work with them and treat them like they are the only client you have. Don't say things like I am not the cheapest but the best. Just talk about your strong points and then ask for the business. ABC. Always Be Closing!

"How to deal with pricing issues?'

This is asked every now again, most of the time I get a response that my rates are "reasonable". I should actually be putting my prices a bit higher!

To be honest and brief here, people ask for a lower rate. Why? because they don't want the quality or workmanship. It goes back to that saying "You get what you pay for."

When customers ask for cheaper rates, send them to your competition. Your competition can have those customers. Those customers may have a poor credit rating (hence their previous supplier doesn't want them any more) , their lack of candor and perhaps the customer is to demanding. Is it really worth having a customer take up more of your time?

Explain why your rates are higher. I explain that for me to draw a caricature, it takes X amount of time. Then I have to get in my car and deliver the paper to them. Also, what I draw is a keepsake for life.

In short, your rates are fine. Define your target customers. Your competition can have the headaches.

In reality, we all only have one customer. Who are these customers? These customers all have one thing in common.

They all APPRECIATE what we do.

If they don't appreciate what we do, the competition can have them.

Thomas, what a great question! There are customers who are only interested the "HOW MUCH?" When faced with a customer who is in a mindset of "HOW MUCH AM I SPENDING?" this is your opportunity to shift their perspective and allow yourself to shine bright!

Help the customer to focus on the value, how you are different than others, how you and your skills, your quality service, and other unique qualities add VALUE, not just price.

Show the customer HOW your value adds to what they need. Keep the focus on the value and how your rapport with the client will help you both be successful. You can also ask your client why they want a lower price. What is keeping them from looking at the pricing and not at the value you can add to their lives or business? If pricing is a budget factor, than see what you can remove from your proposal to bring down your pricing, but not your value. Maybe you have some fluff, you can remove because they don't require it. Maybe you can do a payment plan that allows you to give the customer or client the whole package, but over an extended period of time they can afford you. Maybe you can do 2 weeks, instead of 4 weeks to get the pricing in the budget. Talking to the customer or client to see where they are coming from allows you to keep directing the client or customer towards your value and not the pricing. I would also encourage you to focus on your own value and what you are bringing to the table. Pricing is always negotiable. Your value is not.

Beyond this, there are still clients and customers who want to debate your pricing. They are "negotiating". When you attract clients like this on a regular basis, there is a lesson here. Ask yourself, "Do I value my services? Do I feel my skills speak for themselves? Would I purchase my services at this pricing?" Asking these questions are going to help you see why you are attracting these types of clients. If you do not value your services and would not pay your price, why should a customer or client value or pay your prices?

If you find you need to readjust your thinking and perspective, work through that. Use the future clients and customers as a guide of what is going on beneath the service within you.

Good luck and many blessings!

Hugs, Jen Casper

You get what you pay for is what I always say. You can get discount prices but then you get discount service

Thomas,

I remember hearing a marketing consultant say that 1/3rd of customers buy the lowest priced service/product, 1/3rd will pay up for quality often but always look for a sale, and the rest don't care about the price. Those customers want or expect high quality along with a high level of service and personal attention that comes with it. Once you have your target customers identified, you can focus on the middle to high-end customers that will pay your price. You can market to that lower third offering occasional incentives with the goal being bringing along some of those "new" customers into the fold.

Cheers,

Jim

Brian Tracy says "The first to negotiate loses".
I have "packages" along with questionnaires for my services I send to potential clients before I will meet with them. Then I have give them a free consultation to go over the questionnaires, answer their questions, and make recommendations (this can include creating custom packages). This is how I based my pricing, which depends upon my recommendations and agreed upon level of service/s from the client. In most cases, this has eliminated this issue. If the client still has concerns regarding price, I attempt to find a package that works for them. Otherwise, I simply tell them there is nothing I can do. I will not get into price wars and I know the value of my knowledge, expertise, and service so I do not negotiate or lower my prices.