Every entrepreneur, business owner, and service provider will face this scenario at some point—likely more than once. It’s a recurring challenge until you learn how to navigate it effectively.
Imagine you’ve met with a potential client, shared a meal, and discussed their needs in depth. You’re confident you can help them achieve their goals, and they’re excited about what you offer. Everything seems perfect until they say, “That sounds great, but I can’t afford it.”
Many people’s knee-jerk reaction is to drop their rates. It feels like the right thing to do; you want to help, and there’s potential for good karma and referrals.
However, this often leads to a less-than-ideal client relationship. You might find yourself dedicating more time than compensated for, which can lead to resentment and questioning why your business isn’t as profitable as it should be. Then, while you’re skipping holidays and essential expenses, your client is off enjoying luxuries.
Does this sound familiar? If so, make a promise to yourself right now: Never lower your rates just to please a client. Doing so devalues your services and makes the client less likely to value them. It can even lead you to feel so undervalued that you consider quitting.
This doesn’t mean you can’t offer special deals, but you should never devalue your services to the point of regret.
A Better Strategy
If a potential client can’t afford you, and you still want to work with them, consider adjusting the scope of your services instead of your rates. Here’s how you can approach it:
Suppose your standard coaching package includes:
- Four 45-minute calls per month
- Daily email support
- Quarterly in-person meetings
- An annual mastermind retreat
The client baulks at the £1,000 monthly fee. Instead of a price cut, you could offer to remove the annual retreat or the quarterly meetings from the package, reducing the cost without undermining your rate.
This adjusted proposal helps maintain your value and provides a plan the client can afford, achieving a win-win situation without making you feel like you’ve compromised your worth.
Alternative Approaches
What if you charge by the hour? Consider how you can reduce the hours while still delivering value. For instance, offer two instead of four calls a month, supplementing with email support if needed. This way, you maintain your hourly rate, reduce your time commitment, and still deliver significant value to your client.
Next time you’re asked for a discount, think critically about how you can adjust the scope of work instead. This ensures you never feel taken advantage of, while your client continues to receive excellent service. And who knows, perhaps down the line, they might be in a position to afford the full package.
Always remember, your skills and time are valuable. Protecting your rates protects the integrity of your business.