The Reasons Potential Clients Think You’re “Too Expensive”
Has this ever happened to you?
Someone contacts through your website and they are super excited about the prospect of working together. You hop on a call with him or her and explain everything about your services. You tell them all the amazing things they will get and all about your previous experience and the potential client is just soaking it all in. Everything seems to be a perfect match so you tell them your price and….
And then the dreaded, “Ok well that all sounds great but I’m going to need to think on it a bit”…or…”talk to my significant other”…and then…”I’ll reach back out if I’m ready to move forward.”
And then naturally you get a follow up email days or weeks later with the inevitable brief few lines stating something like: “Unfortunately your services just aren’t in my budget” or “I decided to go with someone less expensive”.
Well fine then.
But seriously, what gives?
If you are constantly getting pushback from potential clients or customers that you are “TOO EXPENSIVE”, there are a number of reasons why this could be happening. Let’s break them down and start to get a handle on how to better communicate your VALUE so that you’ll never hear another price objection again.
1) You are targeting the wrong client.
Have you ever watched a car salesman try to sell someone the most expensive car on the lot when they walked in looking for something basic and affordable? How do you think that turned out? Would you go looking for a pair of high-end designer jeans at Target? Of course not, you’d probably head to Nordstroms. Similarly you wouldn’t go to Nordstroms expecting to find a pair of jeans for $30.
If your brand and messaging are attracting people looking for a “deal” than you will never be able to sell them a premium service or product. You need to be sure your business is being seen by people that can afford you and that are looking specifically for what you offer.
Who is your current audience? (and note I didn’t ask who you want your audience to be, I am asking who is currently finding your business, following you, and inquiring with you?). Can those people afford you?
2) You aren’t solving a big enough problem.
Value can be boiled down to a very simple concept: the greater the problem or need, the more money someone will spend to solve it. Allow me to tell you about the time my children had lice. (Yes freaking LICE!). I woke up on a Saturday morning, ready for a fun outing with my husband and two little girls and as I went to brush my oldest daughter’s hair I saw it…a freaking BUG was moving on her scalp. The more I frantically parted sections of hair, the more tiny little critters I saw and I just about vomited on her. It was awful. The first thought that entered my brain was “I need to get these bugs out of her hair and out of my house RIGHT NOW.”
After a quick Google search for “how to get rid of lice” in addition to all the horror stories of washing bedding, and combing for weeks on end, I came across a company that will come to your house anytime, and treat your entire family right then and there AND they guaranteed if you followed their protocol for the next few weeks, your house would remain lice free.
SIGN ME UP.
You see in that moment, I was ready to pay ANYTHING to have someone show up at my house, and deal with the little buggers so I wouldn’t have to. (And I did pay a HEFTY price for a woman to show up only a few hours later, on a Saturday, and treat every one of us). And I would do it again in a heartbeat.
Why? Because I had a BIG problem. And I wanted it solved NOW.
If your clients are telling you that your pricing is too expensive, you haven’t created a big enough need for what it is that you are offering.
3) You haven’t created scarcity.
Now let’s take the story one step further. Not only did I NEED the lice removal company to come remove the lice and guarantee it wouldn’t return, I needed it NOW. And as it turns out, that company was the ONLY company that would happily come to your house any day or time. If I wanted the situation handled that very Saturday, that company was my only option.
If you’re still hearing price objections, you haven’t convinced your potential client that you are the ONLY one who can solve their problem. How do you do that? You create scarcity with unique value.
If your client believes someone else can solve their problem just as well but for less money, you’ve just made yourself a commodity and you’ll have a hard time getting them to look past your price.
In my free guide, 5 Steps to Your Most Profitable Year, I walk you through 5 actionable steps that will help you finally get serious about your business’s bottom line including the the important questions you need to ask yourself to better understand your unique value? Here’s the link to grab it!
4) Your potential client isn’t understanding your value
Before I hop off my value soap-box today, I have one more KEY takeaway for you. Sometimes the issue isn’t that your service or product HAS value or is needed by your client, it’s that you aren’t COMMUNICATING it. Many creative business owners spend forever listing off all the features of their service but never mention the benefits. What problem are you solving and HOW does your service solve that problem?
Let’s look at wedding photography for example. You could spend an entire meeting with a couple telling them that you’ll spend 8 hours shooting the wedding day, and you’ll bring a 2nd shooter as well as an assistant, and after the wedding they will get a gallery of all of their images as well as a print release, a 24 page custom “fine-art” wedding album, a 24 X 40 framed print of an image of their choosing, and on and on and on.
OR you could spend that time explaining how you’ll be there for 8 hours to be sure that you capture one of the most important and meaningful days of their lives in it’s entirety and you’ll have a 2nd shooter so that someone is always shooting and no angle or moment is missed and the assistant will be there to help fluff the bride’s dress and position her just right so that she always looks her best. And then after the wedding, you’ll make sure that they have plenty of ways to view and share their images in the easiest way possible with their online gallery, and they will be able to relive their day for years to come through their custom album and print to hang in their home and one show their adorable future children.
Which sounds more appealing to you? Which scenario makes you want to open your wallet?
Stop selling your service or product and instead sell the VALUE.
Are you ready to increase your revenue and finally have your most profitable year in business yet? If you wish you could charge more for your products or services and finally make what you know you’re worth, grab the free guide, 5 Steps to Your Most Profitable Year. Find it HERE!