🔥 Campfire 20: How to answer the client who wants a cheaper price?
You will probably encounter clients asking for discounts for various reasons no matter what kind of services you offer.
You will probably encounter clients asking for discounts for various reasons no matter what kind of services you offer.
As a freelancer, your goal is to close these deals in a way that satisfies the customer while working within your pricing constraints.
When talking to a client who wants a discount, the first thing you need to make sure it's not the type of client to avoid.
Of course, there might be some scenarios when you need to close a specific deal or give a discount based on the unique terms and size of the agreement to a particular price range.
But most often, clients want to lower the price to simply get a higher ROI on your work.
In my experience, those clients have the budgets to work with you. When you see that it's the case in your situation, ask a simple question:
Is the goal to spend the least money or achieve the goal?
See, clients don't really care about the money spent. They care about project completion. If you can communicate that – you close the deal.
Here are 5 ways to respond when the client asks you for the discount
Describe how you differ from competing products in terms of value
Clients frequently request a discount because they believe they can find a better value elsewhere. Unless you're talking about precisely the same services, there probably isn't much that sets your service apart from someone else's, especially when relieving problems.
This is your chance to correct the record and demonstrate the true worth of your services.
Your offering might be of a higher caliber. You might provide extra services that others don't. O r you have more additional skills. Or your promise is more powerful.
Add more value than they were getting
In keeping with the first option, you can decline the discount request and raise the deal's value instead.
Consider what extras you could include in increasing the pricing's appeal. Perhaps you have a free add-on item you can offer. Or provide a support/training package or an extended warranty. Maybe you can keep your price the same while providing case studies demonstrating the value of a longer-term contract.
Question the customer as to why the cost is a concern
You don't want to reduce the value of your service by giving a discount without justification.
A great way to find out information that will advance the sales process is to ask the customer why the price keeps them from moving forward.
It's a reasonable question that can help lead to a consensus of ideas when in conversation with the client, whether that means being able to add something of value that the customer needs, learning about a competitor brand you might be competing with or learning the budget costs they're working with.
Agree, but change the terms
Depending on the service you sell, you might be able to use a discount request as a way to increase sales or foster brand loyalty. You might say, for instance:
"The contract can be extended, but you must agree to keep it for a year"
"I can meet that price if you also consider reducing the scope"
Ask what they feel would be an appropriate discount
Knowing what kind of discount they're looking for is helpful if you're willing to extend one.
You can simply agree to the client's request for a discount if it is reasonable, which may be one of the quickest ways to close a deal. If they make an unreasonable request, you can tell them that the gap is too big and let them go (which will save you both time).
Conclusion
Customers are always looking to save money when purchasing goods. It is up to you to decide what to say in this situation.
Obviously, your range of choices varies depending on your product or service. However, if you're looking for a response to a client's request for a price reduction, here are 5 fair and efficient ones that give you a great chance of advancing your deal:
Describe how you're providing the prospect with more value than they could find elsewhere
Provide greater value without raising prices
Question the client as to why the cost is a barrier
Ask the customer what kind of price reduction they desire before telling them no and providing a reasonable justification
Tell the client that you will accept their business if they are willing to extend the contract