Giving your clients the prices for your services or products is always the hardest part of any pitch. You are confident in what you are selling or offering, but it’s tough to be certain that they’re going to like the price. Perhaps your competition is offering them something at a better price or their equally-priced product appeals to the client more. So, what do you do?
If you’re going to present pricing to your clients, here’s how to do it the right way:
See Also: 6 Ways to Price Your Own Product
1. Be Confident
Don’t assume that your prices are going to be perceived as "too high" right off the bat. You have no idea what your clients are accustomed to paying or how much they are willing to pay for what you are offering. Who knows? Your price may actually be seen as "cheap", especially if you are offering something of value.
Before you walk into that meeting, make sure that you know what you are offering. Understand the value of your service or product, and be confident that the client will accept the value because you believe it. As long as you have established your price point with the proper research, you have nothing to be nervous about.
2. Show Only a Few Prices
You have to show SOME of the prices in your presentation, but you don’t need to show them all. Show the prices that you are most confident in, such as the ones on the packages that provide the most value for the cost. If the clients like those prices, you can show them the rest later.
3. Price According to Value
Don’t make the mistake of presenting your clients with a price that is based on the amount of time you will be providing them a specific service. You should always price your services according to the value provided, not according to the amount of time you THINK it will take. For example, if you are pricing a freelance design project, price by project not by the number of hours. It will ensure that you are paid fairly and that your client understands how much you value what you have to offer.
4. It's all About the Presentation
No, that doesn’t mean you have to invest a fortune into making the best quality PowerPoint presentations around. It’s about answering questions, providing solutions, and reassuring the clients as effectively as possible. If the client understands what they are getting and how it will benefit them, they will be more than willing to pay – even if it means paying a bit more than they’re accustomed to. You should focus ALL of your efforts on making the presentation as appealing to the client as possible.
5. Add Options
The best way to make clients think they are getting exactly what they want: give them options and allow them to make the choice. You should always have a "starter package" that provides all of the basic services or products that they need. But then give them options of "add-ons" that they can use to expand on that package. That way they will feel that they are getting everything they need, and they will be happy because THEY chose what they want.
The dollar amount has very little to do with the success of your pitch, but it’s all about HOW you pitch the prices to your clients. Follow the tips above and you’ll have a much better chance of success in your presentations.