Archive for March, 2018

Dear Danielle: Client Wants Me to Cut My Fees By $200 a Month

Dear Danielle: Client Wants Me to Cut My Fees by $200 a Month

Dear Danielle:

I recently had a contract client who could no longer afford to pay me the regular contracted amount because of a slowdown in her business so she asked that I drop my price about $200 until she was back on her feet. How should I deal with that? She’s been my client for 3 years and she’s always paid on time and every penny. I agreed to the cut but not sure for how long. Any words of advice? —KP

It sounds like this is a good client with whom you’ve had a happy, healthy business relationship thus far.

It also sounds like this client is paying some sort of monthly fee, if I am surmising things correctly.

And there’s no reason to throw all that away.

BUT there’s also no reason why this client’s financial woes should be your problem. Especially since you aren’t sure how long it will continue.

There IS a compassionate, client-centric way you can offer to help this client out during what I assume is only a temporary predicament without sacrificing your own business needs and well-being.

And it starts with this handy phrase: You don’t get what you don’t pay for.

That’s obviously not very client-centric the way it’s phrased, but the solution in its meaning is, very simply, to take something off the table.

What that means is, if you are selling hours, take $200 worth of hours away from their retainer. Only work up to the number of hours they have paid for.

If they can only pay for 15 hours instead of the usual 20, then they should only get 15 hours of support, not 20.

Alternatively, if you are using my value-based pricing methodology (which is a faster, more effective way to make an impact and give clients more readily apparent, targeted results), take a $200 task/function/role away from the monthly support plan.

Have a conversation with the client, identify what the most important functions are to their operations during this financial lean-time, and then offer to remove/temporarily suspend a $200 value task/function/role that is least necessary and will have the least impact on their continued smooth functioning and profits.

Give them two or three options of what could be removed for $200 less a month, and let them decide which one to sacrifice.

It’s also possible during this discussion that the client realizes even more the value of what you do for their business and decides to find the money to keep paying your full fee for full services to continue.

If this were me, I would also be curious about the reasons for this client’s financial down-turn.

If they were open to sharing, it’s possible I would have some ideas and insights on what we could do and where we could focus our work to create some new/fresh revenue.

Perhaps you even saw this coming, but the client had previously been resistant to exploring your ideas, trying something new, or doing things a little differently than they were used to that might have helped them improve financially. They might now be a bit more receptive to hearing you out.

I would, however, certainly expect to be paid for any additional work/consulting I provided. It’s up to them to decide where their priorities are.

No reasonable client would expect you to work for free.

And despite any client’s best (or unrealistic) intentions, they don’t have a crystal ball no matter what grand promises they make.

So the best policy is to go about things in a way that serves your business interests.

Keep in mind that you have an obligation to safeguard your financial well-being and business profitability not only for yourself, but for your other clients as well.

It doesn’t serve them for you to be giving away time, energy, and work for free to someone who isn’t paying fully for it.

And don’t even think about letting this client pay on credit (a la “I will gladly pay you tomorrow for a hamburger today”).

You won’t be doing them, yourself, or your other clients any favors by letting them go into debt to you.

If they are already in financial straights, owing you or anybody else more money is only going to bury them further.

Remember, you teach people how to treat, value, and respect you.

Lower your fee for this client if you want to help and keep them on your roster; just make sure you also take away an equal amount of work from what you provide them with.

And have another conversation with this client to reset the expectations around what they will and won’t get for the reduced monthly fee.

I also suggest giving the client a definite time limit on this special arrangement.

Give it a month or two and inform the client that you will need to review and discuss things again at that time to determine whether or not it’s still feasible/profitable/in your business interests to continue the arrangement.

If there’s no improvement in sight, you may even decide that, while you wish this client well, keeping them on your roster is no longer profitable for you.

If any of this is helpful, one way you could return the favor is by letting me know in the comments. I would truly value that.

And if you or anyone else has more questions on this, please feel free to ask in the comments, and I’ll be happy to continue the conversation and share my further insights and advice.

No, You Don’t Need to Publish Pricing on Your Website

No, You Don't Need to Publish Pricing on Your Website

I heard the most ridiculous thing this morning.

Yet another internet marketer was telling people that it’s a matter of respect to publish pricing on your website, that you are being “manipulative” if you don’t publish prices so that a “logical, rational, open-hearted, responsible ADULT” can decide whether it’s in their price range.

This is the kind of thing cheapskates say.

And I’ve got news for them: respect goes both ways.

In fact, what’s manipulative and dishonest is them implying that you are manipulative, dishonest, and not an open-hearted adult if you don’t publish your prices.

Playing to the lowest common denominator is a race to the bottom of the client barrel, folks.

Nothing good comes from listening to those who merely want you to make it easier for them to pit providers against each other on price so they can get something of value for as little as possible.

Let me set you straight. Not posting pricing has nothing to do with being manipulative or coercive.

It’s the fact, plain and simple, that more conversation is needed with a provider before cost can be determined.

Because here’s what “logical, rational, open-hearted” adults also know: their needs are not going to be exactly the same as the next person’s needs and, therefore, cost can vary depending on differing particulars and variables.

  • If you need your fence painted, would you want a one-size-fits all price?
  • If your fence area is much shorter than the mansion down the street whose fence is taller and covers vastly more square footage, would you expect to be charged the same amount of money?
  • And what needs are important to you when it comes to your fence?
  • Are you looking for more of a quick, slap-dash, cosmetic kind of job and aren’t much more invested in it than that?
  • Or are you looking for something that shows more obvious high quality work that involves more prep and skill, but will stand up better to the elements as well as increase curb appeal and property value?
  • Do you need a special kind of paint or color?
  • Is long-lasting, mold-resistent paint important to you (which comes at a higher cost, but requires less maintenance and repainting)?

Do you see how more in-depth one-on-one conversation with a live, actual person here is vital?

There is more probing and questioning a provider must engage in with you in order to identify the needs, values, and results that are important to you individually before they can give you an appropriate price.

I don’t think anyone can call that anything but reasonable, rational and client-centric.

And consider this… how many times when you’ve needed services have you called around and ended up choosing the person/service that you felt the most “good” about, simply based on your actual conversation and interaction with that person/business, regardless of the price and despite how much conversation was needed?

You simply came away feeling like they cared a little more about you as a person than the next provider, about what your goals were, about the quality of their work, about doing a great job for you and making sure you got the right price for your situation.

We’re talking about human to human services here, not boxes of cereal along the grocery aisle.

Professional services (which includes the professional service of administrative support) aren’t commodities on a shelf, one exactly the same as the next.

And value-based pricing, if you follow the methodology I teach, isn’t based on an hourly rate.

The ingredients required to support one client are not necessarily going to be the same ingredients the next client needs. So there isn’t a nice, neat, one-size-fits-all price you can publish.

Providing administrative support, and professional services in general, involves more details than simply buying a box of macaroni sitting on a store shelf.

Out of respect for all parties, you owe it to both the client and yourself to require some further conversation apart from the website so that you can both get certain vital information from each other, determine where and whether you can help, and see if there’s a good mutual fit so that you can then determine what their particular plan of support would cost.

That’s something that has to be done on an individual basis, not on your website.

And rational, reasonable adults — who have a vested interest in finding real solutions and getting the right help and are not merely shopping for the cheapest provider — understand this.

Instead of publishing prices, have a conversation on your website about your approach to pricing and why you don’t publish prices. Rational, reasonable adults are perfectly capable of understanding this.

In fact, it will make perfect sense to them once you bring it to their attention. They’ll actually appreciate it and feel better knowing that you have their best interests at heart, which is exactly why one wouldn’t publish pricing.

It does clients a disservice to treat them all the same (hmm, sort of like they were nothing more to you than interchangeable boxes on a shelf).

But you can’t get more meaningful insight or learn more about them without further conversation.

The happy byproduct of that conversation, incidentally, is that they also get more insight into why they would want to choose you.

And I’ll let you in on a little secret: In a sea of websites all trying to be generically the same (and whose skills and polish tend to be just as low-grade), not publishing prices (and stating the reasons why) will be a competitive advantage that makes you stand out and will attract better, more ideal clients.

It is precisely because my ideal clients are rational, reasonable, and intelligent adults that I do not post pricing on my website. They are smart enough to understand why an actual conversation is in order first.

So, I don’t publish pricing on my website because:

  1. I am not interested in working with every ham-fisted knucklehead who stumbles upon my website.
  2. My ideal clients are rational, reasonable, intelligent adults able to grasp the necessity of further conversation before pricing can be determined and discussed.
  3. Each client is a unique individual who deserves more than a generic, one-size-fits-all solution.
  4. Each client is a human being, not a dollar figure, who deserves my time and sincere interest in learning more about their particular circumstances, goals and obstacles.
  5. I care about providing each client with a custom, personalized — not generic — plan of support that will get them the results they’re looking for and is priced accordingly. That’s not something you can generically publish pricing for.
  6. I don’t sell hours or bill hourly. Because selling hours actually works against achieving the results clients want to see in the most expedient way possible.
  7. The price of one client’s administrative support plan is not necessarily going to be the same as the next client’s, if I’m truly taking their individual needs and interests into consideration and not just trying to make as much money off every one of them as I can.
  8. If someone is only looking for the cheapest provider and my not posting prices helps them move on, that is exactly my intention. It’s part of my organic process for sorting the ideal from the unideal before they contact me.
  9. I don’t offer half-baked quick fix schemes. If my not posting prices helps move them along to someone else, that helps me reserve my time for more ideal, better qualified client candidates and consultations. This is again by design, not accident. (Looking for quick fixes is a telltale sign you’re dealing with a cheapskate who will not only devalue the work, but you and everything else along with it.)
  10. It’s just not that simple.

There is much more to say about this topic in order to fully grasp all the nuances of posting or not posting prices. I encourage you to read more here about the pros and cons of posting/not posting pricing on your website. 

And if you want — if you need — to charge more than $5/hour and you don’t want to be stuck with a poorly earning practice the rest of your life, you need to learn how to price and package your support in a way that speaks to clients and what they care about (none of which requires you to publish pricing or compromise your high standards around client care and discovery), and you need to learn how to have the whole pricing conversation that goes along with that.

I have three products that will teach and show you exactly how to implement those things, step-by-step:

  1. Breaking the Ice: Complete, Step-by-Step Guide for Confidently Leading the Consultation Conversation and Converting Prospects into Well-Paying Monthly Clients Who Can’t Wait to Work with You (GDE-03)
  2. Value-Based Pricing & Packaging Guide: How to Price and Package Your Support Value & Expertise — NOT Selling Hours (GDE-39)
  3. Build a Website that WORKS (GDE-40)

If you want better clients, if you need to improve your skills when it comes to talking with clients about price, if you want to have an easier time getting clients and consultations, there simply no way around it: you must increase your knowledge, understanding, and skill in these three key areas.