3 Crazy Questions Potential Clients Will Ask and How to Confidently Answer Them
Hey friend, you’re not the Prada purse at a TJMaxx price.
“So what do you charge for coaching sessions?” or “What is your hourly rate?” The essential topic of pricing and questions and I hear each time I am meeting with potential coaching or consulting clients (and rightly so!).
When I am exploring working with potential clients, the pricing topic inevitably always comes up. And it is at this pivotal point in the relationship where things can get a little awkward if you’re not prepared.
Many clients and many years later, I’ve put together a few common sticky situations I’ve found myself in and how you can rise above with the outcome in your favor.
So whether it’s your first time talking price (we’ve all been there!) or you’ve been in business for quite a while, the pricing conversation DOES get easier! And the good news is that I’m here to help slow things down a little so you can know what to look out for in your next conversation. Consider me your parachute.
It’s common for business owners to struggle with how to price their services. Some people believe that as they first start out they need to “gain experience”, aka work for free or far below their value or market rate. I want to set the record straight, that you do no one any favors by doing this.
Assigning your services a lower price tag can be a red flag to clients who are shopping around. There absolutely is a price that is too low, and that’s the price where your potential client may begin to question your talent or business model.
While clients may act excited to hear a rate lower than they were expecting, their gut may tell them otherwise or they may question what the catch may be. Sounds a bit counterintuitive, I know.
But consider this example.
Do you screech to a stop to pick up a 48” flatscreen on the side of the road with the sign “FREE” taped to it? Or do you first think, “does it even work..? Looks kind of heavy… I don’t even need a new TV…” Furthermore, wouldn’t you rather jump at a 50% off coupon in your email inbox from BestBuy to purchase that same exact TV a few days later?
Pricing comes down to perceived value vs. actual value. If your actual value (think price tag) is BELOW your perceived value, your clients could be hesitant to sign the deal and you may lose the opportunity altogether.
So think about your actual value and price accordingly! Detailed market research is key in helping to determine your actual value, more to come on this one.
Clients often want the Prada purse at the TJMaxx price, you know what I mean? Premium services at a fraction of the price. That puts you in a tough situation because I know you’re worth so much more.
Now let me fill you in on a few more secrets and situations to be prepared for when it comes to pricing matters.
“I’m a family/friend, do you offer any special pricing?” Ahhhh… the "Friends & Family" discount. If you decide to work with family or friends, decide in advance how much time or money you are willing to give away, if anything.
Remember you are running a business and you are not automatically obligated to give anyone a deal just because they know you. These are some of the hardest moments to stick to your guns and know your worth.
There might be a situation to collaborate with someone has the potential to help you grow and refer your work to other future clients. If you decide to make an exception, be careful that you still find joy in the work and feel GOOD about the agreement, deep down in your gut.
“Is your price negotiable?” For my consulting work, I am asked this all.the.time. Like every time I meet with a potential new client. Remember, it is in the client’s best interest to have you come in at the lowest rate possible. Rarely do I ever have a client agree to my rate immediately on the spot. Negotiation could come in the form of subtleties or blatantly asking for a discount or if you’re “flexible” (refer to above point #1).
In situations like these, it’s a good idea to consider the whole package or offer, take your time, and avoid rushing through a conversation while agreeing to something that doesn’t make you feel good because you’re too nervous (or desperate) to say no.
I recommend keeping prices as-is and throwing in something for "free" instead... something that isn’t a huge sacrifice to you but would be very valuable to them.
Some examples could be a few more unedited proofs for photographers, a free template or tool for coaches/consultants, etc. Take the lead here so your clients understand your rules of engagement.
Depending on the client, the opportunity, and the future potential, you may want to consider being somewhat flexible with your rate. Decide in advance the lowest price you’re willing to go and stick with it. If the client insists on paying you far less, accept that it is very clear you are not the right fit for them and perhaps refer someone who is within that price range and then quickly move on.
“Can I pick your brain?” This one is extra tricky, mostly because it is very situational and the person is expecting you to give them your time for free. You’ll need to evaluate who the person is that is asking and decide beforehand how much of your time you're willing to give, if at all.
If you do decide to meet with them, sending a calendar invite (15 minutes works really well!) with a clear start/stop is an easy way to time box your conversation. I generally do not meet in person because once travel time to/from the location is built-in, I’ve found myself to be waaaaay overextended.
I've even found 15 minutes of "picking your brain" time has actually led to new clients! It's a great chance to understand what the person is struggling with and how you could potentially help them with your services.
Even if nothing comes of it, you still only gave up 15 minutes and who knows, maybe they'll buy in the future or refer a friend! At the very least, you'll learn more about people's pain points to refine your business messaging and how your business could help solve those issues in the future.
Finally, once you do secure a client (congrats, btw!), remember the contract! If you’re someone who struggles to say “no” to your clients, using a contract could be a really easy way to ensure you’re covered.
A contract is a critical piece of the overall engagement that must not go overlooked. It establishes boundaries early on and ensures everyone is on the same page.
A contract also is intended to be objective and mostly agreeable to both parties. If a violation of the contract agreement ever comes into play, you have the agreement to refer back to. In the best client engagements, you sign a contract once and never look at it again!
Starting a business is not for the faint of heart and pricing your services confidently is a key step. Remember to stick to your guns (or terms of service in the contract!) and make sure that the agreement feels GOOD and makes you even more excited to begin the work.
If you feel bad about taking a job because you’re sacrificing too much (read: time, money, effort, brainpower, even emotional bandwidth) consider saying no. Or hey, you could even raise those prices….
Alright, we’ll save that for another day ;)
Holly works with professionals to create services-based businesses using expertise and strengths they already have. Holly is the creator of The Consultant Code, a program will have you up, running, and profitable with your services-based business in 60 days or less! Want to learn more? Drop her a note at: holly@hollyknoll.com