What do you say when they say you're "too expensive?"

Overcoming price objections is the focus of Business by Design this month.

THIS MONTH:
+ Price Objections Rock!
+ Corroborate Your Cost
+ Compensation Concepts

+ Price Objections Rock!
If there's one thing many design professionals and industry partners dread, it's price objections. They're scared to death of them.

They shouldn't be. Questions about price are buying signals.

Prospects must be at least somewhat interested in your furniture, fabrics or faucets to ask their cost.

They aren't looking for the best price. They're looking for the best solution to their design problems.

That's why your priority should be to ask about their priorities -- other than price.

They may mention completion deadlines or delivery scheduling or guarantee policy or...lots of other things.

The discussion will remind them about all the issues at stake besides cost.

+ Corroborate Your Cost
Price negotiations are no time for original thought.

That's why you should memorize and share, at a moment's notice, a list of reasons why you're worth your design or consultation fee, margin, mark up, etc.

Fee "justifiers" can include things like your…

+ Experience
+ Design specialties and expertise
+ Awards and other recognition
+ Clients: who you've served, and how
+ Education

Another way to justify your fee: explain how you save your clients time, money and headaches, etc.

You can also avoid price hassles by presenting personal marketing materials that demonstrate your value.

Examples: bio sheets, testimonial letters and lists of your products and services.

+Compensation Concepts
Keep the following ideas in mind the next time you talk price with a prospect:

+ You can set and get any fee if you can differentiate yourself from competitors who charge less.

+ It doesn't matter what you say about your fees. What matters is what you say about yourself. How you charge is less important than how you promote yourself.

+ If a prospect says you're "too expensive," she means that you're not a priority right now. Your mission: educate her as to why investing in your service should be a priority.

+ If someone calls your rate "too high," say: "Too high compared to whom? Too high compared to what?" Establish their price parameters.

+ Compare apples to apples. When you're told a competitor's bid is less than yours, make sure there's a fair comparison of everything that both firms offer.

+ Share your "only." Nothing justifies higher fees more than the phrase: "I'm the only window fashion professional in this area who..."

+ When all else fails, say: "I have no problem with those who charge less. They, alone, know what their products and services are worth."