A client recently asked how to handle a price objection.
Their prospect wanted a major discount which would have meant shaving almost $5,000 off the price.
Before I recount how I told them to respond, let’s see how this request could have been avoided in the first place.
Transcript
Imagine needing lifesaving surgery. There’s only one surgeon capable of saving you. She names her price. You nearly fall off the chair, swallow really hard and then say, “I’ll find the money”.
Okay, this is an extreme example, but you get the idea.
But what if you’re a consultant in a crowded field. There are lots of other providers who could provide the service. Maybe even undercut your price.
How do you stand out and maintain your price in the face of the bargainer?
There are 2 parts to this.
The first is it comes down to your business posture.
Who you are.
What you stand for.
How you want to be treated.
What are non-negotiables when dealing with clients?
Clients are buying your knowledge, skill and experience. These are your assets. Don’t undervalue them.
Therefore start with your own value.
Do you really believe you provide value for the money they’re paying you?
What are you saving them in time, money, effort? How are you helping them reach their outcome faster?
Do you internalise it?
If you don’t believe you provide real value, it’ll come across and people will doubt you.
This is not about being arrogant. It is about being your authentic self.
This is who you are and if they want your help, this is the price.
Part 2 is you have to communicate your value by educating your prospects.
I’ll cover that in a later video.
Now back to what I told our client regarding the requested discount.
I said hold your ground. You have more than enough business coming in. If you acquiesce to the request you’ll lose respect and set the agenda for how this client will treat you in the future. In short, you’re setting yourself up for trouble.
The client will always want to negotiate and be difficult. So don’t go there.
Now some of you might be thinking, that’s all very well if you have a steady stream of clients coming in. What if you don’t?
Well, intrinsically the same rule applies. Now I know that’s likely to be difficult in practice as you really need the business. Just be fully aware that you may be creating a rod for your own back further down the track.
I’ll be covering more on business growth strategies in future videos, so look out for them.
