Product Tips
How to Deal with Price-Sensitive CustomersBy: Sandi Smith, CPA
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Situation
Customers or prospects may ask you for a discounted price or a special deal, or you have friends who expect you to do accounting favors for them for free. This puts you in an awkward situation, especially if you don't have some tactics ready to respond to such requests.
Response
Here are some tips on what to say when you encounter a price-sensitive individual.
Focus on Benefits
If you can get people to think about the benefits of your services rather than the costs, you'll be ahead of the game. You provide valuable intangibles such as peace of mind, keeping out of trouble with tax agencies, the feeling that the tax bill has been minimized, helping people know their checks won't bounce, and paying attention to deadlines so clients don't have to.
When a person asks you to discount your price, tell them "sure." Then ask them which value or benefit or personal objective they want to take away. They'll rarely want to get less from you, and if you let them know that's the only way you'll lower the price, they will back off.
Stop Apologizing
You'd be surprised how many accountants I see apologizing for their prices. Stop it! Share your fees with full confidence, and be proud of what you have to offer. I just tripled my price on one service and will be ending a record year in sales.
Your buyer has an ego and wants to be proud of her decision to hire you. Don't let her down. We all expect to get what we pay for.
Have Fee Integrity
The moment you discount one client, your other client is going to find out. Maintain fee integrity by charging everyone the same amount for the same service. When someone asks you for a discount, let them know how unfair that would be to your other clients.
I don't recommend lowering your fees to get in the door either. You have just set your worth to that client, and it will hard to get your fees raised to where they should be.
When friends continue to ask for favors, you have to decide how good of a friend they have been. You might be dealing with an individual who doesn't have good boundaries and expects something for nothing on a regular basis. Some of my best friends are just the opposite; they won't let me discount their services and just love to give, give, give.
A Discounted Plumber?
Would your prospect even consider asking your plumber for a discount? Does the image conjure up leaky faucets and broken pipes? Compare your services to other investments your client has to make, and you'll soon seem very reasonably priced.
Multiple Choice
Give your prospect three options to say yes to: the budget one, the middle one and the expensive - way past their budget - one. You'll be surprised at how often they'll choose the middle one versus the cheap one so that they're the ones who don't look cheap.
The Higher, the Better
Make sure you're dealing with the highest ranking executive that you can. You'll often get more budgetary flack from a middle manager than you will an executive.
Be Prepared to Walk
If your prospect continues to pressure you about price, then imagine what they're going to be like during the work engagement. Sometimes it's best not to take the business. When you begin to walk away, it's amazing how many people will say, "wait a minute." Then the power has shifted to you.
Try these tips to turn your prices from cheap to classy, and reap the benefits in your bank account.
Sandi Smith, CPA, is a freelance writer and professional speaker located in Dallas, Texas. She is a frequent collaborator to Intuit ProConnection Newsletter. Her web site is http://www.sandismith.com.
Last Updated: 12/20/2006
