Emails, mobile phones, texts have shortened our attention span and people expect responses pretty near immediately. Companies with global call centers offering service 24-7 have trained customers to become really impatient if they have to wait for an answer. If you aim to offer good customer service and take pride in efficiency it becomes a matter of principle to respond as quickly as possible.
Yet, the less people in an organization, and the more important a customer is, the more difficult it is to deny access.
So how do you charge for interruptions? Or don’t you?
First, here’s some perspective: If you weren’t in a home-based office but working in a corporate office in town your company would be charging out your interruptions. They would, for example, have made allowance for meeting times and budgeted for them so that somewhere along the line the client pays. If the client wasn’t paying the costs of internal staff meetings the company would soon stop being viable and you would ultimately find yourself looking for a job. So you be like the company and do the same and make allowance for a reasonable number of interruptions in your day - just think of them as unscheduled meetings!
If you work on your own you may well be taking on many roles – for example, secretary, treasurer, operations manager, credit manager, sales person, cleaner and production worker.
Don’t make the common mistake of thinking you are just a production worker, make sure you charge for all those other roles you do.
No matter where you work, life crops up, interrupting the flow. Minimize interruptions as far as humanly possible but factor in a percentage as part of your working day – just make sure there are not so many you become uneconomic. Build enough fat into your prices so you can take the occasional interruptive phone call, demand from a child, request from a friend and knock at the door.
© 2007 Jane Francis is the author of ‘Price Yourself Right: A guide to charging what you are worth’ [ISBN 0-595-38601-6] which is available at Barnes & Noble (US), WH Smith (UK) and at amazon.com.
Thursday, December 20, 2007
Tuesday, December 18, 2007
The best way to win new business
In order to make a sale your customer needs to believe you are the person with the product or service who will solve their problem. They need to get to the point where they trust that you will make things better for them.
Just because you know all about your products and services, your client will not. There may be huge gaps in their understanding of what you do and how long it takes. They may be ignorant of the knowledge and skill required to do what you do and what’s more: they do not know what they do not know. They may not see the value in what you provide so it is your job to educate them. Can you demonstrate your product? How many of the senses can you involve? Can you prove your cost-effectiveness? Do you have a graph to show savings? What about case studies, before and after pictures, or testimonials from happy customers?
Teachers of fiction writers repeatedly tell their students: ‘Show, don’t tell’. In other words, don’t tell the reader the soldier went to war and felt miserable. Show the reader his misery – the rats in the trench, the incessant rain, his cold hands against the steely bayonet and the mud that made the flesh around his finger nails rot like … you get the picture!
Show your clients the advantages of your product or service. Show them what it means to them – how it will save them time, make them more money, make them thinner, younger, more gorgeous. For example, if you are selling tax advice show your customer a testimonial from a happy client that saved $5,000 in taxes last year after spending just $400 with you.
Imagine you’re selling a pre-cracked fresh egg mix to a meringue company; work out the savings in breakages, transportation and packing costs of a liquid delivered in a bucket rather than eggs in cartons. Work out the labour savings in egg-cracking time and add up all these savings in a week, a month or a year. Now show your client a picture of the increase in meringue sales and a graph of the extra profits, and how one cent more per meringue converts to $100,000 in extra sales per annum. Whip up a batch of fresh meringues and let them taste the difference. The best way to win new business is show – not tell - your customer how much of a difference your product or service will make to them.
©2007 Jane Francis is the author of Price Yourself Right: A guide to charging what you are worth (ISBN: 0-595-38601-6) available at Barnes and Noble (USA), WH Smith (UK) or online at amazon.com
Just because you know all about your products and services, your client will not. There may be huge gaps in their understanding of what you do and how long it takes. They may be ignorant of the knowledge and skill required to do what you do and what’s more: they do not know what they do not know. They may not see the value in what you provide so it is your job to educate them. Can you demonstrate your product? How many of the senses can you involve? Can you prove your cost-effectiveness? Do you have a graph to show savings? What about case studies, before and after pictures, or testimonials from happy customers?
Teachers of fiction writers repeatedly tell their students: ‘Show, don’t tell’. In other words, don’t tell the reader the soldier went to war and felt miserable. Show the reader his misery – the rats in the trench, the incessant rain, his cold hands against the steely bayonet and the mud that made the flesh around his finger nails rot like … you get the picture!
Show your clients the advantages of your product or service. Show them what it means to them – how it will save them time, make them more money, make them thinner, younger, more gorgeous. For example, if you are selling tax advice show your customer a testimonial from a happy client that saved $5,000 in taxes last year after spending just $400 with you.
Imagine you’re selling a pre-cracked fresh egg mix to a meringue company; work out the savings in breakages, transportation and packing costs of a liquid delivered in a bucket rather than eggs in cartons. Work out the labour savings in egg-cracking time and add up all these savings in a week, a month or a year. Now show your client a picture of the increase in meringue sales and a graph of the extra profits, and how one cent more per meringue converts to $100,000 in extra sales per annum. Whip up a batch of fresh meringues and let them taste the difference. The best way to win new business is show – not tell - your customer how much of a difference your product or service will make to them.
©2007 Jane Francis is the author of Price Yourself Right: A guide to charging what you are worth (ISBN: 0-595-38601-6) available at Barnes and Noble (USA), WH Smith (UK) or online at amazon.com
Sunday, December 09, 2007
Consulting fees - you get what you ask for
You've probably heard the saying 'You get what you pay for' but had you thought about its corollary: 'You get what you ask for'? When you ask for your fees are you asking for what you really want-and I am not talking just about the money?
I know a business analyst who was being contracted out at $65 per hour when the market was paying other people of his caliber (if they could find them) $150-$200 per hour. He wasn't especially motivated by money because he was content with what he had; his problem was that the work simply was not challenging enough. In his business, you don't get the best projects to work on if you are only charging $65 an hour.
He eventually solved his dilemma with just one short conversation. He told his client he was not happy with the rate they were paying him, 'Come back with something more competitive.' They did-twice his current rate and an infinitely more interesting project.
In another example, a friend was telling me about her partner who loved the type of work he did, but resigned from his job out of desperation because of the internal politics in the office. For a while, Gavin got seriously glum as he considered other options before being wooed back to his original employer as a consultant. Though he was doing the same work, he was on a six-month contract, at an hourly rate that was twice his previous salary. When that contract expired, it was renewed at almost double the rate again! My friend was laughing as she told me how Gavin was a changed man. The job was the same, and the politics remained; the only difference was that he was now being paid more than a hundred and fifty dollars an hour.
According to my friend, it was because Gavin was paid more that he felt more valued, which raised his self-esteem. External events changed his internal experience. Other people might work in reverse: they may need to raise their self-esteem first before they are able to receive more money.
If you are a contractor does your fee schedule reflect your abilities and skills? Ask yourself: Do your prices place you in the market for the type of client and work that you want to do?
© 2007 Jane Francis is the author of ‘Price Yourself Right: A guide to charging what you are worth’ [ISBN 0-595-38601-6] which is available at Barnes & Noble (US), WH Smith (UK) and at amazon.com.
I know a business analyst who was being contracted out at $65 per hour when the market was paying other people of his caliber (if they could find them) $150-$200 per hour. He wasn't especially motivated by money because he was content with what he had; his problem was that the work simply was not challenging enough. In his business, you don't get the best projects to work on if you are only charging $65 an hour.
He eventually solved his dilemma with just one short conversation. He told his client he was not happy with the rate they were paying him, 'Come back with something more competitive.' They did-twice his current rate and an infinitely more interesting project.
In another example, a friend was telling me about her partner who loved the type of work he did, but resigned from his job out of desperation because of the internal politics in the office. For a while, Gavin got seriously glum as he considered other options before being wooed back to his original employer as a consultant. Though he was doing the same work, he was on a six-month contract, at an hourly rate that was twice his previous salary. When that contract expired, it was renewed at almost double the rate again! My friend was laughing as she told me how Gavin was a changed man. The job was the same, and the politics remained; the only difference was that he was now being paid more than a hundred and fifty dollars an hour.
According to my friend, it was because Gavin was paid more that he felt more valued, which raised his self-esteem. External events changed his internal experience. Other people might work in reverse: they may need to raise their self-esteem first before they are able to receive more money.
If you are a contractor does your fee schedule reflect your abilities and skills? Ask yourself: Do your prices place you in the market for the type of client and work that you want to do?
© 2007 Jane Francis is the author of ‘Price Yourself Right: A guide to charging what you are worth’ [ISBN 0-595-38601-6] which is available at Barnes & Noble (US), WH Smith (UK) and at amazon.com.
Friday, December 07, 2007
Are you a slave to money?
If you have ever done something or gone somewhere you did not want to, just because you have paid for the tickets and could not get your money back, then you have been a slave to money. What is your relationship to money?
Is money your comfort, your god, your friend, your master, servant, lover? In a sense money does ‘talk’.
In English, Japanese, Taiwanese or French, two simple words ‘How much?’ and an open wallet can get you round most of the world. In a capitalist system we need money to function and a big part of you is the way you handle, control, manage, lose, fritter, invest, eat, burn, love, hate or worry about money.
The things money can buy have probably defined your experience of holidays, birthdays, Christmas; alongside which reside some of your most deep seated values. For example, were you brought up to ‘get your money’s worth’? What happens now when you fail to get value for money…do you end up feeling cheated or ‘ripped off’? Think about the things money symbolises to you. When you were a child, what were the conditions of pocket money? Did money bring you joy and happiness, love, entrapment, resentment or fear?
As an adult, what is your definition of waste or extravagance? I have friends at either end of the scale when it comes to grocery shopping. One buys a lot of sausages and cheap mince and prides herself on her economy; the other spares no expense and buys exotic fruit, fresh salmon and expensive, lean cuts of meats without exception. Her argument is you can buy a lot of quality food for the price of a triple heart by-pass or a mobility scooter! What does prosperity mean to you? Some financial advisers advocate that you save $3.50 a day (the cost of a cup of coffee) so you can reap the benefits of compounding interest and retire in moderation years later. I was inclined to agree with this advice until the day I realised that having the disposable cash and time to enjoy a bought coffee a day was prosperity. It was neither a wasted opportunity to save, nor an extravagance.
Money means different things to different people, and it can buy us experiences that are unique to us. A friend of mine told me her dream was to buy a brand new Porsche. Bridget had worked out she could afford it if she added the loan to her mortgage and paid it off over 25 years. Being financially savvy she knew the real cost of the car but said it was something she just wanted to do in her lifetime so the expense would be worth it. When I found out she had not yet driven one we arranged a test drive. We had only been driving five minutes when I asked her if the car ‘did it for her? Was it worth it?’ She replied, ‘I don’t know, I think I might sooner have six months skiing in Aspen.’ We discussed how she would feel returning to the workplace in order to pay for it. She told me she wouldn’t have a problem owning a better car than the General Manager but she would find it difficult going back to the boring job she had. To her that car was a metaphor for the excitement that she otherwise lacked in her life. Buying it would have provided the biggest adrenalin rush, after that it would have been down hill all the way. What she really wanted to do was break out and test her self-belief. Fortunately she realised in time that a car repayment plan wasn’t the answer.
© 2007 Jane Francis is the author of ‘Price Yourself Right: A guide to charging what you are worth’ [ISBN 0-595-38601-6] which is available at Barnes & Noble (US), WH Smith (UK) and at amazon.com.
Is money your comfort, your god, your friend, your master, servant, lover? In a sense money does ‘talk’.
In English, Japanese, Taiwanese or French, two simple words ‘How much?’ and an open wallet can get you round most of the world. In a capitalist system we need money to function and a big part of you is the way you handle, control, manage, lose, fritter, invest, eat, burn, love, hate or worry about money.
The things money can buy have probably defined your experience of holidays, birthdays, Christmas; alongside which reside some of your most deep seated values. For example, were you brought up to ‘get your money’s worth’? What happens now when you fail to get value for money…do you end up feeling cheated or ‘ripped off’? Think about the things money symbolises to you. When you were a child, what were the conditions of pocket money? Did money bring you joy and happiness, love, entrapment, resentment or fear?
As an adult, what is your definition of waste or extravagance? I have friends at either end of the scale when it comes to grocery shopping. One buys a lot of sausages and cheap mince and prides herself on her economy; the other spares no expense and buys exotic fruit, fresh salmon and expensive, lean cuts of meats without exception. Her argument is you can buy a lot of quality food for the price of a triple heart by-pass or a mobility scooter! What does prosperity mean to you? Some financial advisers advocate that you save $3.50 a day (the cost of a cup of coffee) so you can reap the benefits of compounding interest and retire in moderation years later. I was inclined to agree with this advice until the day I realised that having the disposable cash and time to enjoy a bought coffee a day was prosperity. It was neither a wasted opportunity to save, nor an extravagance.
Money means different things to different people, and it can buy us experiences that are unique to us. A friend of mine told me her dream was to buy a brand new Porsche. Bridget had worked out she could afford it if she added the loan to her mortgage and paid it off over 25 years. Being financially savvy she knew the real cost of the car but said it was something she just wanted to do in her lifetime so the expense would be worth it. When I found out she had not yet driven one we arranged a test drive. We had only been driving five minutes when I asked her if the car ‘did it for her? Was it worth it?’ She replied, ‘I don’t know, I think I might sooner have six months skiing in Aspen.’ We discussed how she would feel returning to the workplace in order to pay for it. She told me she wouldn’t have a problem owning a better car than the General Manager but she would find it difficult going back to the boring job she had. To her that car was a metaphor for the excitement that she otherwise lacked in her life. Buying it would have provided the biggest adrenalin rush, after that it would have been down hill all the way. What she really wanted to do was break out and test her self-belief. Fortunately she realised in time that a car repayment plan wasn’t the answer.
© 2007 Jane Francis is the author of ‘Price Yourself Right: A guide to charging what you are worth’ [ISBN 0-595-38601-6] which is available at Barnes & Noble (US), WH Smith (UK) and at amazon.com.
Wednesday, December 05, 2007
Do what you love and the money will follow … Bullsh*t!
Really?
Then why do ninety-nine percent of artists and yoga teachers struggle to make a living?
And childcare workers, teachers, nurses, herbalists, massage therapists, writers, actors ….
The line ‘Do what you love and the money will follow’ sells tons of books and CDs. It may even spark a few dreams - and it’s a lovely philosophy - but as a message it is somewhat lacking in detail.
To be more accurate it should say ‘do what you love and the money will follow IF you learn how to ask for it'.
Celebrities know there’s a very real place for talent agents and middle managers that act as brokers. If you really don’t have the skills to collect the money employ someone else to do it for you. Or learn how to do it yourself but don’t think it’s going to happen on its own.
©2007 Jane Francis is the author of Price Yourself Right: A guide to charging what you are worth (ISBN: 0-595-38601-6) available at Barnes and Noble (USA), WH Smith (UK) or online at amazon.com
Then why do ninety-nine percent of artists and yoga teachers struggle to make a living?
And childcare workers, teachers, nurses, herbalists, massage therapists, writers, actors ….
The line ‘Do what you love and the money will follow’ sells tons of books and CDs. It may even spark a few dreams - and it’s a lovely philosophy - but as a message it is somewhat lacking in detail.
To be more accurate it should say ‘do what you love and the money will follow IF you learn how to ask for it'.
Celebrities know there’s a very real place for talent agents and middle managers that act as brokers. If you really don’t have the skills to collect the money employ someone else to do it for you. Or learn how to do it yourself but don’t think it’s going to happen on its own.
©2007 Jane Francis is the author of Price Yourself Right: A guide to charging what you are worth (ISBN: 0-595-38601-6) available at Barnes and Noble (USA), WH Smith (UK) or online at amazon.com
Monday, December 03, 2007
10 MORE tips to help you negotiate your price
1. Sell the discounts
Some people just love a bargain, in fact, they must get a bargain. Keep their attention on the $300 they will save, not the $6,000 they will be spending.
Most people relate to cash better than a percentage--three hundred dollars is far more meaningful that 5%!
Use price points to ease your customer through the psychological pain barrier--$9,999 looks a lot less than $10,000.00.
2. Ask them to make a counter proposal
Get your client to bring their ideas into the open. See how far apart you are. Do a reality check, go back to the original brief and specifications and check they are all mandatory. Since starting the purchase process it is possible your client may have altered his expectations.
3. Price bargain
'If you want a better price, give me a better order.' Search for joint benefits and win-win solutions. For example, you could lower the price if the customer does part of the job or pays you cash in advance.
It is in the nature of your customer to want all the discounts you give him. It is not his job, nor is he ever likely to tell you you are too cheap.
4. Don't drop your price before it is necessary
Don't become too committed to your lowest price early on. Try to hold your price by giving them more value--an extended warranty, a free upgrade. You can always come down later but it's difficult to go up.
If you give them something make sure they appreciate you more for it.
5. Leave yourself room to negotiate
Allow for contingencies. Give yourself the right to add or alter the quotation later if the client changes their mind in some way, or you have unexpected difficulties sourcing raw materials and the like. Put your conditions in writing to save any misunderstandings later.
6. Keep your objectivity
If the negotiation is overheating take time to think things over. Be wary of high pressure tactics. Give yourself an 'out clause' like referring to a higher authority (your boss, your lawyer, your mother) so you have time to take the deal away and review it.
7. Practice saying no, maybe, okay then
Negotiating is a two way process--you can dance to and fro for ages--but always keep in mind the bottom-line and be prepared to walk away. Use your intuition and do not allow yourself to be bullied. You can always say no but do it in such a way that you leave the door open so you can change your mind and say 'yes' later if you think you might want to.
8. Listen for the ticking clock
One property investor buys a house every year in the week prior to Christmas. She gets a great deal and the owner goes on holiday able to make plans for the future. Make sure you know your client's timeline and use this information to your advantage.
Also make sure your contract has specific time frames e.g. this quotation is valid until <<>>. You want to retain control over your time--this is your life.
9. Assume nothing
When you present the quotation, some clients go quiet for a while before responding. Others react as if they've never seen or heard anything so preposterous. You can never know for sure what they are thinking. Ask as many questions as you can to try to find out and be confident you know why you charge what you do, what is negotiable and what is not.
10. Keep an open mind
If you find the market situation or your competitor's tactics have changed you may need to recheck your facts. Don't believe that you offer the right price for all time--do some research and intervene, if necessary.
©2007 Jane Francis is the author of Price Yourself Right: A guide to charging what you are worth (ISBN: 0-595-38601-6) available at Barnes and Noble (USA), WH Smith (UK) or online at amazon.com
Some people just love a bargain, in fact, they must get a bargain. Keep their attention on the $300 they will save, not the $6,000 they will be spending.
Most people relate to cash better than a percentage--three hundred dollars is far more meaningful that 5%!
Use price points to ease your customer through the psychological pain barrier--$9,999 looks a lot less than $10,000.00.
2. Ask them to make a counter proposal
Get your client to bring their ideas into the open. See how far apart you are. Do a reality check, go back to the original brief and specifications and check they are all mandatory. Since starting the purchase process it is possible your client may have altered his expectations.
3. Price bargain
'If you want a better price, give me a better order.' Search for joint benefits and win-win solutions. For example, you could lower the price if the customer does part of the job or pays you cash in advance.
It is in the nature of your customer to want all the discounts you give him. It is not his job, nor is he ever likely to tell you you are too cheap.
4. Don't drop your price before it is necessary
Don't become too committed to your lowest price early on. Try to hold your price by giving them more value--an extended warranty, a free upgrade. You can always come down later but it's difficult to go up.
If you give them something make sure they appreciate you more for it.
5. Leave yourself room to negotiate
Allow for contingencies. Give yourself the right to add or alter the quotation later if the client changes their mind in some way, or you have unexpected difficulties sourcing raw materials and the like. Put your conditions in writing to save any misunderstandings later.
6. Keep your objectivity
If the negotiation is overheating take time to think things over. Be wary of high pressure tactics. Give yourself an 'out clause' like referring to a higher authority (your boss, your lawyer, your mother) so you have time to take the deal away and review it.
7. Practice saying no, maybe, okay then
Negotiating is a two way process--you can dance to and fro for ages--but always keep in mind the bottom-line and be prepared to walk away. Use your intuition and do not allow yourself to be bullied. You can always say no but do it in such a way that you leave the door open so you can change your mind and say 'yes' later if you think you might want to.
8. Listen for the ticking clock
One property investor buys a house every year in the week prior to Christmas. She gets a great deal and the owner goes on holiday able to make plans for the future. Make sure you know your client's timeline and use this information to your advantage.
Also make sure your contract has specific time frames e.g. this quotation is valid until <<>>. You want to retain control over your time--this is your life.
9. Assume nothing
When you present the quotation, some clients go quiet for a while before responding. Others react as if they've never seen or heard anything so preposterous. You can never know for sure what they are thinking. Ask as many questions as you can to try to find out and be confident you know why you charge what you do, what is negotiable and what is not.
10. Keep an open mind
If you find the market situation or your competitor's tactics have changed you may need to recheck your facts. Don't believe that you offer the right price for all time--do some research and intervene, if necessary.
©2007 Jane Francis is the author of Price Yourself Right: A guide to charging what you are worth (ISBN: 0-595-38601-6) available at Barnes and Noble (USA), WH Smith (UK) or online at amazon.com
Saturday, December 01, 2007
10 tips to help you negotiate your price
1. See your price from your client’s point of view
Before you negotiate your price, first, step inside the shoes of your client for a moment and think about her fears – does she know she can trust you? How does she know you will deliver good value for money? Will you make her look stupid for buying from you?
Make sure you understand exactly what she wants and what she expects to receive from you. Invest time in educating your client how you operate.
2. Plan in advance
Make a list of what you have to negotiate. What will your customer insist on and how flexible are you prepared to be? Can you offer delivery before or after Christmas … Can you offer a six month or twelve month warranty … or would he prefer a monthly contract? Look for solutions, not problems, and keep thinking creatively. Ask him: ‘Would you prefer this or what about that?’
3. Make sure you are dealing with the person who has the authority to say yes
If possible, find out how much discretion the person you are dealing with has, and who else is involved in the purchase decision. How are you going to sell them anything if the person you are dealing with has no authority to buy?
4. Don’t mention your price too soon
Get your client thinking about what you are going to give her before you start her thinking about what she’s going to have to pay you. Build her confidence and reassure her that the quality will be just what she wants and make sure it is, or let the client go.
5. Test them
Tell your customer what others are paying and how happy they are with your products and service. Then test your customer by asking: What were you expecting to pay? How much are you paying now? What are your usual rates? Is there a company policy on this? What did you pay the last person?
6. Sandwich your price between benefits
When you tell your customer how much it costs tell her the significance of all that she is getting and how it will benefit her.
7. Compare the product quality to the price difference
If you are making a comparison between your own products and services, or those of a competitor, tell your client all the extra special effort, or components, you put in. Remember: It’s not the price that’s important it’s what the product does for her.
If your product or service is higher priced don’t be afraid of the competition. Be proud. You are better. Likewise, if you are cheaper – be proud. Tell your customer how and why you made it cheaper, and what the benefit of this is.
8. Show the penalties of not buying
What might she miss out on if she doesn’t buy now?
Show the savings - gross them up or show them as extra profits if they are reselling your goods.
9. Explain the cost (or the savings) in a way that is meaningful to your customer
Reduce the expense into smaller units e.g. $520 extra is just $10 a week; $1.42 per day: a few cents per hour. If it’s a large purchase you can work it over the lifetime of the product.
Compare the value of your deal: What else could they spend their money on? Put it in their language. For example, the cost is less than one meal out. You only need to make one sale to cover it.
10. Create some urgency
Motivate your customer to act quickly. Make them an offer, for example: Buy one and get one free; Free gift with purchase; Extended five year warranty.
Focus their attention on deciding now, not later. Give them a deadline on the offer. ‘Offer valid until [date].’ You don’t want them to procrastinate any longer.
©2007 Jane Francis is the author of Price Yourself Right: A guide to charging what you are worth (ISBN: 0-595-38601-6) available at Barnes and Noble (USA), WH Smith (UK) or online at amazon.com
Before you negotiate your price, first, step inside the shoes of your client for a moment and think about her fears – does she know she can trust you? How does she know you will deliver good value for money? Will you make her look stupid for buying from you?
Make sure you understand exactly what she wants and what she expects to receive from you. Invest time in educating your client how you operate.
2. Plan in advance
Make a list of what you have to negotiate. What will your customer insist on and how flexible are you prepared to be? Can you offer delivery before or after Christmas … Can you offer a six month or twelve month warranty … or would he prefer a monthly contract? Look for solutions, not problems, and keep thinking creatively. Ask him: ‘Would you prefer this or what about that?’
3. Make sure you are dealing with the person who has the authority to say yes
If possible, find out how much discretion the person you are dealing with has, and who else is involved in the purchase decision. How are you going to sell them anything if the person you are dealing with has no authority to buy?
4. Don’t mention your price too soon
Get your client thinking about what you are going to give her before you start her thinking about what she’s going to have to pay you. Build her confidence and reassure her that the quality will be just what she wants and make sure it is, or let the client go.
5. Test them
Tell your customer what others are paying and how happy they are with your products and service. Then test your customer by asking: What were you expecting to pay? How much are you paying now? What are your usual rates? Is there a company policy on this? What did you pay the last person?
6. Sandwich your price between benefits
When you tell your customer how much it costs tell her the significance of all that she is getting and how it will benefit her.
7. Compare the product quality to the price difference
If you are making a comparison between your own products and services, or those of a competitor, tell your client all the extra special effort, or components, you put in. Remember: It’s not the price that’s important it’s what the product does for her.
If your product or service is higher priced don’t be afraid of the competition. Be proud. You are better. Likewise, if you are cheaper – be proud. Tell your customer how and why you made it cheaper, and what the benefit of this is.
8. Show the penalties of not buying
What might she miss out on if she doesn’t buy now?
Show the savings - gross them up or show them as extra profits if they are reselling your goods.
9. Explain the cost (or the savings) in a way that is meaningful to your customer
Reduce the expense into smaller units e.g. $520 extra is just $10 a week; $1.42 per day: a few cents per hour. If it’s a large purchase you can work it over the lifetime of the product.
Compare the value of your deal: What else could they spend their money on? Put it in their language. For example, the cost is less than one meal out. You only need to make one sale to cover it.
10. Create some urgency
Motivate your customer to act quickly. Make them an offer, for example: Buy one and get one free; Free gift with purchase; Extended five year warranty.
Focus their attention on deciding now, not later. Give them a deadline on the offer. ‘Offer valid until [date].’ You don’t want them to procrastinate any longer.
©2007 Jane Francis is the author of Price Yourself Right: A guide to charging what you are worth (ISBN: 0-595-38601-6) available at Barnes and Noble (USA), WH Smith (UK) or online at amazon.com
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