It happens to all businesses.
You’ve got your prices all set out when a customer comes along and says
“Hey, that’s great, but I just cannot afford it”
So, what do you do?
If you are like most small businesses, your first thought may be to offer to lower the price.
Your mind is awash with thoughts such as “they need my service/product”, “I need the business” PLUS it’s great karma! The customer will be so thrilled that she’ll tell all of her friends and family and I’ll get loads of referrals…
Maybe, but more likely than not, what you end up with is a customer who takes far too much of your time, for less money than you deserve. You wind up resentful, and wondering why you aren’t earning the living you know you’re capable of!
Does this sound familiar to you?
I want you to make a promise to yourself right now that you will never again lower your rates simply to appeal to a customer. Doing so devalues your service, and worse, makes you feel terrible later.
Now, I’m not saying you can never offer special deals. But I do want you to change how those offers are made. Here’s how it works.
If you offer a package, that consists of a number of items, and the total of the package is more than the customer can afford. You alter what is included in the package as well as the price.
So, you can afford to offer flexibility.
I made the mistake of doing this once. I kept taking on more and more tasks from a particular client for no extra fee until one day, I realised that I was working as a specialist for probably less than minimum wage! AND was likely working at a lower rate than all the guys in the team (who were also receiving a stack of employee benefits too!)
I love my work. I am desperate to ensure each job I do is great and that each client gets amazing results. However if I do not value myself, no-one is going to.
We all want to bring benefits to as many people as possible. But for you to be able to build a strong sustainable business you must do this in a way that limits any negative impact on your progress and growth.
Work with any customers who cannot afford what you offer and see if it is possible to re-work the package to a price she can afford. Make it a win-win for both of you.
Discounting is something totally in your control.