Stop Dishing out the Discounts
Pricing Part 3
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Should you be offering discounts on your current rates?
You offer a proposal or contract to a potential client who responds with, “That sounds great, but I can’t afford it.”
This has probably happened to every coach and service provider at one time or another, including me.
What do you do?
For a lot of service based business owners and coaches, the first response is to offer a discount on the original quoted price.
We then start to justify our reasons behind the decision. After all, they might come back again in the future or you may get referred to other business owners and get more clients. The reasons we give to justify the price drop are endless.
However, in my experience, what tends to happen is you end up with a client who takes far too much of your time, for less money than you are worth. The job becomes one you don't love and you kind of end up resenting. This can lead to doubting yourself and your ability to make your business a success......all of this because you dropped your price to get a new client. Yikes, scary stuff, but I've been there, and I know many others who have too.
Why you shouldn't lower your rates to appeal to a client
- Doing so devalues your services
- It makes the client feel as though they were initially being overcharged
- And makes you feel rubbish
This doesn't mean you can't have special offers and discounts, but how can you provide your clients with a special offer without devaluing your service?
You change the way you apply the special offer.
For example, say you have a coaching package which includes three 45 minute calls and unlimited email support for one month at the cost of £500. Rather than offering to reduce the price for the same service, you offer to reduce the service and the price. You could then change the package to two 30 minute calls and email support once a week for a month for the price of £250.
What you have done here is create a package that is affordable to your client at this time. It's a win-win for both of you.
This same technique can be applied to any type of service where package prices are involved.
What should you do if you charge an hourly rate?
You must remember that the thing you can't do here is to reduce your hourly rate as that would devalue the service you provide. It's also not fair to the other clients who pay the full amount but get the same time from you.
The best way around this is to consider putting together a package for a particular set of tasks or services. To do this, find out the budget the potential clients has in mind and the tasks or service requirements they're looking for. And in the same way as I've just talked about, where we reduced the price and the package, you work out a price and a package which fits the client's needs and budget.
A little unsolicited advice
You can't please everyone. If you try your best to support the needs of the client within their budget without devaluing the service you provide and they still don't go for it, just leave the ball in their court.
Some potential clients will always be just that, and never quite make it to full blown client status. This is not your fault; there is nothing you have done wrong or should have done differently.
Instead, it's usually down to the customer not fully understanding what they want, or being willing to commit to the realistic cost for this type of service. Be careful not to waste too much time chasing clients who will never jump on board.