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When a Client Says "Your Price Is Too High"

How do you respond to clients when they say "your price is too high”?

In this video, Chris and Pro Group member, Mo, act out a role-play scenario where Mo is the vendor and needs a video for $1,000. We’ll see the role-play unfold and watch Chris as he navigates this obstacle, knowing his minimum level of engagement (MLE) is $4,000.

Start by Asking Questions

Questions allow you to dive into the client’s problem and guide the conversation forward. You want to ask more than you tell to really understand what the client needs and how you can help. We cover this in plenty of our other negotiation and sales videos, but only because it is absolutely crucial. If you don’t know what the client needs, you’ll walk out of the conversation without knowing how you can best help.

Put the Price in Perspective

Mo’s budget in this role-play scenario is $1,000, but for his hypothetical business, what does spending $1,000 look like for other expenses? Does that fall on the high end or low end of things? And what kind of value did those purchases bring to the business, if any?

When Chris compares the price of his services to something Mo regularly spends money on of equal value, it helps him see how his initial budget is less than what Chris’s work is worth.

Prepare to Make a Counter Offer

When you’re negotiating, it helps to have an extra trick or two up your sleeve. Clients may not always go with your initial price or offer. They may be firm on their budget—just as Mo is in this role-play—and not budge whatsoever.

If that’s the case, be prepared to make a counter offer. Instead of a fixed-price project, Chris pitches something else entirely: working for free. Instead of collecting a payment upfront, Chris offers to do the video for free, but on the condition that he gets a certain percentage of the revenue the video creates. Now, this has Mo scratching his head and wondering if the initial offer of $4,000 is the better way to go.

Know that Nothing is Set in Stone

Now just because the client is hesitant to go above their $1,000 budget does not mean you can’t negotiate to get your rate. Everything is a negotiation. Do not settle, and do not think the client has more power over the conversation. They came to you to provide a service, and it’s your job to make sure you’re paid what you’re worth.

Role-Playing is the Missing Piece to Your Negotiation Puzzle

If you struggle with negotiating and having sales conversations with potential clients, role-playing is one of the best ways to get more comfortable. Role-playing allows you to practice how to respond to different types of objections, and learn to really listen to the client. You’ll see in time that the more you role-play negotiating, the better you’ll become. If you want to get started, check out our course: How to Negotiate.

The group you see in the background are members of our Pro Group. If you'd like to get in on weekly calls with Chris, Ben, Matthew, and Greg, or find your network to push you and hold you accountable, check out our Pro Group Membership.

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