How to Discuss Pricing with your Clients – Minus the Awkwardness
One of the most common difficulties entrepreneurs face is the moment when they have to discuss money with their clients. An otherwise pleasant and productive discovery call or meeting suddenly turns awkward once the inevitable subject of cost is raised.
Some don’t know how to bring up the subject, while others cover their nervousness and discomfort by over-explaining and over-justifying the cost of their services.
As much as we’d like to think otherwise, in many cases money will be the deciding factor for your ideal prospect, and as a result, that conversation will be a vital part of your discovery calls.
Discomfort when talking about money isn’t just unpleasant in the moment – it can have a negative effect on your business. During a call, a prospect starts to develop trust and confidence in you and your abilities. However, if you suddenly grow awkward, apologetic and nervous when discussing your pricing, that trust and confidence can be eroded.
Awkwardness tells your prospect that you aren’t 100% confident in your own abilities, or that you don’t believe that what you do is worth the price you’re asking. Much of this awkwardness comes about from a feeling of guilt – as if being paid for your work is somehow greedy or embarrassing.
Here’s the truth of the matter: Regardless of all other considerations, you started your business because you wanted to do work you love and be compensated for it. There’s nothing greedy or wrong with wanting to be paid for your hard work. Coaching as a profession is a challenging job and your work deserves to be compensated. Your clients understand this and accept it as part of the process.
So how do you become more comfortable talking about money? Here are a few things to consider:
Accept that you want to get paid for what you do.
There is nothing greedy or morally wrong about being paid for your work. In its simplest form, its a transaction for services rendered. When prospects are interested in working with you, they go in with a tacit understanding that there will a cost involved. When thinking about the cost of your work, consider the outcome you’re delivering. If you’re a coach, think of the transformations that you gift people with – the pain they bring with them at the beginning, and the joy and freedom they discover after working with you. Your clients value your work, and you should too. Speaking of value…
Embrace the concept of perceived value.
People put a value on what you do, and on the problem you solve. This “perceived” value is often quite different from a monetary value – though likely not in the way you’re thinking. For example, imagine a scenario where someone developed a heart condition that required surgery. The patient is given two choices of heart surgeons: One that charges $500, and one that charges $5000. You might be inclined to think that someone would go for the less expensive option. However, when you factor in the perceived value (living longer, fewer complications, etc.) most of the time, people will chose the more expensive option. And on the subject of what people value…
Understand that people don’t value free.
How many times have you downloaded a free PDF or other resource? And how many times have you then gone on to work with the person who offered it? For most of us, the answers to those questions are, “Many times” and “Hardly ever.” It’s true that sometimes a free resource can be an effective way to attract someone to your email list, but as a product or service in and of itself, there’s no value associated with “free.” The truth is, when people invest financially, they invest emotionally as well. For a coach, that means that a client who pays a significant amount to work with you is more likely to value what you do than someone who gets work for free, or even for a cut-rate price.
Let me leave you with a simple strategy for offering your pricing that greatly decreases the chances of of a prospect saying “no.” It’s called the “Power of Three.” Give your clients three different options for working with you, with three different prices. The exact structure will depend on your business, but for coaches, this usually looks like:
– A one-on-one session
– A group session
– A session that discusses one particular issue.
Never offer just one option – it forces the prospect into a yes/no situation. Providing three different options allows them to decide exactly what they need.
Money is not inherently evil, nor is the desire to be paid fairly for your hard work greedy or something to be embarrassed about. If you have confidence in your skills, have confidence in your pricing as well. Your clients will value it all the more.
Ready to work with me? Here are 4 different ways I can help you grow your coaching business:
- Grab a free copy of my ebook, “Set Your Sales on Fire: Seven Steps to Yes!”
Discover the roadmap that’s generated millions in sales over the last seven years, used by both myself and my clients to create powerful, highly converting sales calls!
- Join the Sales On Fire Community and connect with coaches who are scaling too.
Be a part of my Facebook community, where smart coaches learn to attract more clients and increase their impact and profits!
- Apply for a free 30 minute “Clients and Cash Strategy Session.”
Join me as we map out a quick three-step action plan to get your business moving in the right direction. You’ll leave the call with clarity, confidence and the tools you need to take your business to the next level. Reach out to me here email@example.com with “Strategy” in the subject line and I’ll send you details.
- Work with me directly.
If you’d like to work with me to help you get from “Where is my next client coming from?” to predictable high paying clients, simply reach out firstname.lastname@example.org with “Private” in the subject line. Tell me a little about your business and what you’d like to work on together, and I’ll get you all the details!