BBC 014 : Price Comes Last! How to Let the Client Decide Pricing

I also discuss how to overcome self-doubt when charging higher hourly rates, as well as touch on the value of selling your service as a package or monthly subscription instead of by the hour. For people that struggle saying, “I cost $xxx per hour,” this session is a must.

Episode outline:

Why price comes last

In session 10 of Better Business Coach Podcast, I discussed the five steps to selling business coaching without feeling like you’re selling. Since then I have been inundated with emails saying, “What if a customer asks about price? What do I do?”

Yes, a customer can ask you several times throughout an initial consultation, “What is your fee?” or “How much do you charge?” So shouldn’t you just tell them? At least then they will listen to what you have to say and stop worrying if they can afford you.

Unfortunately, this is not the case. Mentioning price before the end only gets the client to say or at least think, “I can’t afford that,” or, “I don’t think what you have suggested is worth that.” Well of course they don’t because you haven’t told them everything yet. You may not have even asked them enough questions to offer any insight. What makes things worse is that they then won’t listen to what you say and instead will be thinking about the price. They will restrict their answers to you because they don’t want to want to work with you or even if they do listen and respond correctly, they will analyze each point and think, “Is that worth the money?”

So what do you say if they ask?

Do you just say, “Sorry, I can’t tell you right now as then you won’t listen to me.” Of course not. Try saying something like, “Before I can give you a price I need to first understand where, and if, I can help. Then I will be able to work out a package and a price that best suits you. Is that okay?” I still have not had someone say no, and by doing this you are signaling that you tailor a solution to each client, and that you are in control. Both of these will assist you to earn respect and increase your chances of a sale.

Getting over your self-doubt when pricing

I had a recent call with a client, and he asked me how I got people to agree to pay my hourly fee, which was far in excess of his own, to which I responded, “How much do you charge?” He replied, “Like $200.” The answer was clear; he wasn’t congruent with his charge out rate.

For me, I am not only congruent, but I think I charge lower than I should. So when people ask, I deliver the price and people just know it is the right decision.

So how do you become congruent with charging hundreds per hour? I know I struggled with this, especially when I first started, as only a few years earlier I was earning low wages at McDonalds. Perhaps start by giving control over that to the client. When you get to talking about price, try saying the below:

“When you thought about business coaching or considered using me as a coach, I’m sure you had an idea of what professional coaching would cost you. What kind of budget did you have in mind?”

You will get one of three answers:

1. “I don’t have a budget yet” – This means you are not talking to the decision maker, or at least not all of them. Turn the conversation to understanding how decisions are made, who is involved, and what they have paid for similar services in the past. Work through this until the client comes up with a budget, and then move to answer number three.
2. “About how much do you cost?” – This person is not being evasive; they have a budget in mind. They just want to know if they are in the ball park so they don’t look stupid. Don’t fall into the trap of playing whoever answers first loses. Quote a range of prices depending on the amount of work and try to be as congruent about it as possible. Okay, it’s not ideal, but you have lost nothing by trying.
3. “I was thinking it would cost $xxxx” – I hope you like nice surprises, because if you provide a good service and have mastered the art of active listening covered in session 9 and the Business Needs Analysis covered in session 7 and 8, you may find you get numbers much higher than how much you perceive your value, especially ...