It’s Too Expensive
“It’s too expensive” are three words no accounting professional wants to hear from a prospective or current client. Some potential clients will insist your prices are higher than expected. And, a handful of current clients will question why you’re raising your rates.
When the price objection arises, you’re likely to end the conversation. Or, lower your rates to fit your client’s budget. Either of those responses leaves money on the table.
Instead of shutting down the conversation, discover what lies behind a client’s price objections. Follow these recommendations to confidently navigate through this part of the discussion.
Why Clients Point to the Price
You deliver a proposal of recommended services along with your fees. Your client states, “it’s too expensive.” Does the price objection catch you off-guard?
Let’s solve this so you remain composed through this part of the conversation. First, expect price objections. Then, prepare a response which uncovers the true motivation behind this objection.
Expect your price sensitive clients to push-back when asked to pay more. They’ll clearly let you know other accounting professionals offer the same services at lower rates. These clients value a low price much more than they value your services.
Price-sensitive clients don’t want to pay for your expertise. They view you as a technician instead of a consultant who offers high value financial insights. With that in mind, don’t frustrate yourself trying to convince them your pricing is fair.
A Question of Value
Attempting to sway someone into working with you is draining. When you do this, client’s have the upper hand. That’s because you end up pursuing the client. This signals you need them more than they need you.
Rather than pursuit, become curious. Ask questions to better understand their price concerns. Then pay close attention to the response. As you continue the conversation, your ideal client will realize the inherent value of your services.
Always lead with value. Focus on clearly communicating how she benefits from your services. Sometimes sharing current success stories of satisfied clients is the best way to answer a price objection.
What Does a Price Objection Truly Mean?
Potential clients who object to your high price often have a number of additional questions.
So, what other questions still remain?
- Specifics. The client wonders how your services will be uniquely tailored to her specific needs.
- Timeline. The project needs to be completed by a specific date.
- Clarity. The tactical steps remain unclear.
Once she says “It’s too expensive,” all you need to do is say, “I’d like to hear more. Tell me what’s on your mind.” Patiently address each of her concerns. Doing so removes the objections and increases the possibility of you signing on a new client.
Don’t Share Your Rate Too Soon!
During an initial consult, the potential client shares her current accounting problems. You can easily solve her accounting needs. Since you can’t contain your excitement, you enthusiastically share the details of your services and your rates.
Well, discussing these details too soon can kill a sale.
Why? It’s a matter of neuroscience.
It’s difficult for someone to make a higher level decision when they are focused on the stressors and challenges in their business. The typical stress response is escape – commonly known as flight, fight or freeze.
Discussing the possibility of signing on with you is a higher level decision. The executive part of her brain makes that decision.
You need to gracefully guide the conversation away from the problems to the possibility. Transition questions serve that function.
Ask questions which emphasize the future. “What would be possible once this problem no longer exists?”
Insert a transition question into the conversation before you discuss your services and fees.
Don’t Cave into the “It’s Too Expensive” Response
You now realize some clients will claim it’s too expensive to work with you. With this awareness, you developed some responses to those price objections.
Now it’s time to understand why those objections occur.
1. Research. Clients are well-informed. They’ve done about 75% of their research about pricing and services prior to meeting with you.
2. Price sensitive. Some potential clients view your service as an expense instead of an investment. As a result, they want the cheapest option possible.
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3. Questions remain. Price objections creep into the conversation when unanswered questions remain.
4. Value. It’s possible you didn’t clearly communicate the value of your services. Because of that, they compare your offer to similar services offered by other accounting professionals.
5. Bluff. As a rule, some clients always ask for a discount. It’s like a bluff during a poker game. From their perspective, it doesn’t hurt to ask.
When your prices are higher than other accounting professionals, then it’s critical that you clearly communicate your value. Explain exactly what makes your services different and highlight all additional benefits. When your client realizes the benefits of working with your accounting practice are greater than your fees, then the price objection dissolves.
Value Pricing is Your Business’s Launching Pad to Success
Now’s the ideal time to start value pricing your services. Don’t try to please every potential client or compete on price. Maximize the value of your time, focus on high-value clients and the stage will be set for your accounting practice to earn more without burning out. Claim your FREE RESOURCE today to separate your fees from time.