The three words that can truly make an entrepreneur’s heart sink – “You’re too expensive.”
It’s hard enough as a business owner to figure out HOW to charge, but determining WHAT to charge and HOW to stick to it is another ball-game. Especially when you’re a business who invests the time and money into creating a brand that is eco-friendly, it can be hard to stomach someone who may not see your value yet.
Shannon Kenny, founder of Mama Eco and eco consultant who specializes in helping eco-conscious businesses stay sustainable without sacrificing profit, knows that those three words aren’t a death sentence.
“It’s all about communicating the benefit to them,” she said. “I remember when I first started my business I thought it made sense to get the cheapest support possible, but what I got was crap. You get what you pay for. It’s important to communicate that value for your business – you’re saving your client the headache associated with a cheaper option.”
There are three common mistakes that you can make when responding to a cost objection:
1. Give Up and Assume You’ve Lost the Client
2. Panic and Lower your Price
3. Get Defensive
If they still refuse your offer, then it’s worth the time to ask yourself – “Are they my ideal client?”
Perhaps you attracted the wrong type of person, and it would be best for both parties if you recommend someone else. If you’ve determined that they are in-fact ideal, then there’s no harm in offering a freebie, a subscription to your newsletter, etc. to keep you on their mind.
Just because they didn’t buy now, doesn’t mean they won’t buy later. Oftentimes people don’t book immediately because they are still browsing.
It’s important to not give up on them and try to keep you at the top of their mind.
If you want some insight on what exactly to say, then download our free, fill-in template that will help you craft the perfect response to capture that client.
Bonus Tip: If you’re just starting out, it could also be a good idea to do your service for free in exchange for a video testimonial to put on your site. 2 out of 3 people say they’d be more likely to make a purchase after watching a testimonial video demonstrating how a business, product or service had helped another person like them.
But be forewarned – sometimes people will give a negative testimonial or poorly done video. So be cautionary when doing so.
Of course, you’re going to win some and lose some. It’s important that you calculate your value fairly, but also ensure your charge represents the hard work and dedication you’ve put into your brand. Then stick to it.