How do you manage prospective clients cost expectations?

[Baz Watkins]

I.e. what tips have you found work best to explain the difference between what a prospective client thinks your service is worth and what the reality actually is?

This could be for any service, be it web design, seo, ppc, retail etc.

 

[ServWise]

1. Fast development
2. High Quality
3. Low cost

Choose two.

 

[BustersDogs]

Qualifications, experience and training.

 

[suhailc]

Ask who they are comparing you to and explain the differences (if you have significant ones!).

 

[PIngels]

I.e. what tips have you found work best to explain the difference between what a prospective client thinks your service is worth and what the reality actually is?

This could be for any service, be it web design, seo, ppc, retail etc.

Yes, that is sometimes a challenge if you are in a highly competitive, global market place. Your value, if you are talking about web design, seo, etc. should be based on the quality of your services because competing on price is a dead end. And this is where you should make your case. If it is design then you should explain to your prospective client what the benefits are of high quality design. If it is seo you need to convince them that the quality of your work will outperform those of other, less expensive providers. What a client wants is a return on investment and you need to show them that they are in safe hands with your company.

Other advantages could be things like your reliability, being local, your track record, your client list, experience, being small and therefore more personal and the fact that, if you're small, each project becomes more important to you. The way in which you present yourself is also important.

But certainly the most important two things, in my opinion, is firstly to make sure you give your client a fair, marketed related price for the quality of service you offer and secondly, if that client still thinks you are too expensive after you've justified the costs then accept that they are not the right client for your business.

 

[KM-Tiger]

Other advantages could be things like your reliability, being local, your track record, your client list, experience, being small and therefore more personal and the fact that, if you're small, each project becomes more important to you. The way in which you present yourself is also important.

But certainly the most important two things, in my opinion, is firstly to make sure you give your client a fair, marketed related price for the quality of service you offer and secondly, if that client still thinks you are too expensive after you've justified the costs then accept that they are not the right client for your business.

Very good advice, particularly the last sentence. The prospects that want £500 worth of work doing for £50 are just not worth having as clients.

The other thing to consider is how you pre-qualify prospects. There is no point wasting time pitching to those who will never buy from you.

 

[nightmare4471]

If a prospective client does something that is not acceptable to you or requests something that you cannot provide, say so (and the sooner, the better). Be clear, open and honest about when and where you’re not willing to bend your policies and with the services you provide so that there’s no room for miscommunication or misunderstanding. If a prospective client does something that is not acceptable to you or requests something that you cannot provide, say so (and the sooner, the better). Be clear, open and honest about when and where you’re not willing to bend your policies and with the services you provide so that there’s no room for miscommunication or misunderstanding. Don’t just say what you can and cannot do or what’s included in your fee and what is not; put it all in black and white. Whether in an email, a contract (recommended), and/or on your website, it’s important to spell out in writing, not just verbally, exactly what you will and won’t do and what’s covered in the cost.

Also, if the client wants to do something that falls outside of the terms of your arrangement, be sure to communicate that fact quickly and directly so that you stay within the scope of your agreement. This is one place where you absolutely want to be a stickler for detail, because one slip could cost you considerably. If your client wants to modify your agreement and the request is something you’re willing to accommodate, say something like, “I’m happy to create a change order, but the revision will cause [x change] to the cost [and/or time frame].”

 

[Posilan]

If a prospective client does something that is not acceptable to you or requests something that you cannot provide, say so (and the sooner, the better). Be clear, open and honest about when and where you’re not willing to bend your policies and with the services you provide so that there’s no room for miscommunication or misunderstanding. If a prospective client does something that is not acceptable to you or requests something that you cannot provide, say so (and the sooner, the better). Be clear, open and honest about when and where you’re not willing to bend your policies and with the services you provide so that there’s no room for miscommunication or misunderstanding. Don’t just say what you can and cannot do or what’s included in your fee and what is not; put it all in black and white. Whether in an email, a contract (recommended), and/or on your website, it’s important to spell out in writing, not just verbally, exactly what you will and won’t do and what’s covered in the cost.

Also, if the client wants to do something that falls outside of the terms of your arrangement, be sure to communicate that fact quickly and directly so that you stay within the scope of your agreement. This is one place where you absolutely want to be a stickler for detail, because one slip could cost you considerably. If your client wants to modify your agreement and the request is something you’re willing to accommodate, say something like, “I’m happy to create a change order, but the revision will cause [x change] to the cost [and/or time frame].”

More cut and paste spam...

Source:
http://gigaom.com/collaboration/5-ways-to-manage-client-expectations/

Steve

 

[InPrintImaging]

But certainly the most important two things, in my opinion, is firstly to make sure you give your client a fair, marketed related price for the quality of service you offer and secondly, if that client still thinks you are too expensive after you've justified the costs then accept that they are not the right client for your business.

Thats a very fair comment. Everyone gets timewasters, and at a certain point you need to just say no.

 

[nightmare4471]

How does it matters even it has been copied from a different source, just tried to spare some time searching this

 

[Dominic Taylor]

We tell them to get a quote for a smilar service level from any other reputable UK provider (well - I don't really - but I'd like to!)

We have clients tell us that £20 for a year's hosting is too much, and others for whom £2,500/month is too cheap so have both ends of the spectrum....our answer is simple, we don't mess around with pricing - almost all pricing is on our site and reflects the cost necessary to provide high quality service, and no need to contact a salesman and be taunted into spending more than you needed to.

Very few clients have issues once we explain the detail behind our pricing. And many clients who can't afford £200/month+ for a good managed dedicated can spend less and still get a very good service via a high-end VDS - a better service than a low-end dedicated. That pleases a lot of people, perhaps because they expect to be upsold rather than simply asked when they need and pointing to the right product.

 

[chip_y2kuk]

you will always get people who's mate know's someone who know's someone who can do it cheaper

these people usually want the cheapest but expect the best well you can't have great thorough quality and the cheapest service around there has to be some give somewhere (cheapest isn't always best)

i will tell you a story someone i know was having double glazed windows fitted and had previously been stung by a large double glazing firm they met with three or four local glazing firms

the first rep came in sat down was pushy moaned about having to be fensa registered and pay them money, he was smart dressed in a suite and drove a nice car wanted to know who else had quoted and what they had quoted he also explained that they would start from the ground floor and work their way up

the second rep did as above but didn't mentione fensa but his demeanour seemed cagey and he was pushing for a signature again dressed in a suit he said he didn't know when they would start or how they worked

the third guy came in work clothes he run the firm with his two sons explained he had been out and was sorry for his appearance showed the booklets explained what would need to be done and how it all worked when asked he said he was fensa registered but probably wouldn't be the cheapest but did a proper job. he explained they would start from the top and work their way down (what's the point in dirtying new glazing?).

the fourth guy i don't really remember but was slating all the other companies and there work ethic etc etc.

needless to say my friend went with the third guy who arrived as promised on time and did the work exactly as they said they would starting with the guttering and sofits and working down to the exterior doors of the house.

there was trouble with one double glazed unit where it looked like the sealer when the unit was made had run inside the glazing one phone call the guys came round ordered another one and fitted it two days later.

in that case it was worth paying the extra money for the quality of service even though that company was one of the smaller and more expensive comapnies (it's actually a true story)

however for website design people think they should be paying £50 for the whole site and hosting but they won't get anything of any real quality and they certainly won't get the after service which is where it matters.

i won't manage people's expectations i charge what i charge for computer repairs and such but i know i'm the best so i can get away with it there and they usually get there mate to fix it and it ends up on my bench anyway to be fixed after it's been fixed.

web hosting has so many 99P hoo hars offering unlimited people thing it is a cheap thing and it is if you manage to fit 300000 websites on one server but for quality you need to be paying more than that.


joe