If you do it right, every time that you talk about money with a prospect or send a proposal their way, you should feel uncomfortable. Even scared sometimes.
Anxiety, stress and fear are usually associated with bad situations that we avoid at all costs but they are also indicators of growth, leadership qualities and innovation.
It is possible that the moment you ask for their budget your heart rate raises, your palms sweat and you would give anything so that you could avoid the conflict. When you ask for that extra amount for your services, you immediately second guess your decision - it would be better to stay at your current price - because of that very discomfort and the anxiety of losing the client. I get it. I’ve been there.
What I couldn’t realise even after many mistakes and lost opportunities though, was why the anxiety would creep in every time I would set a higher price and talk about budgets and money with a prospect. After gaining the experience and understanding the value that I offered to my client’s businesses though, the insecurity and anxiety around pricing has been reduced significantly.
- Change the starving artist mentality
I’ve come to the conclusion that the second thoughts are the result of forgetting what we bring to the table. Creatives don’t realise that they actually offer great value and that their services are essential to their clients because most of the time, creation comes easy to them, and one can’t charge money for something that comes that easy right?
The first step towards productive money talk is the realisation that your role is that of a consultant. And that your client will benefit from your advice and services. It’s a fact that we want the best for our clients. We want for their business not only to go well but to thrive. And we strive to help them achieve that by giving our best and going the extra mile every time we undertake a project. Extraordinary work is a prerequisite. No second thoughts on that.
- Ask for their budget
Having said that to ask for the client’s budget becomes an essential information for you in order to offer the best possible strategy and solution to their problem. Asking for the amount of money they are comfortable investing is not an intrusive question that they’re not supposed to share. So quit feeling anxious of asking. In fact, ask all the critical questions that they’re possibly afraid to answer because being aware of their hopes and fears makes you a better consultant. Make sure that you ask for their budget early because this saves you valuable time. Imagine having invested several hours for a proposal only to get it rejected because your rate is too high and they can’t afford you.
- Have a range instead of a fixed price
It is quite common for clients to ask for a rate before diving deep into a conversation with a creative. What experience taught me so far is that it is better to give a range of what it would cost for them to have you on board than giving them a fixed price. This way there’s room for them and for you to find the best possible solution for their problems and their budget.
- Take care of your business too
When talking about money you need to have in mind that you have a business too and a business without profit is just a hobby. In order for your business to flourish and for you to be able to remain useful to your clients you should not only be able to pay the bills but also pay yourself and your team and on top of that have at least a 10% profit. To achieve that, before discussing your price with the client, consider your team’s individual rates, your rate and the profit you should make from the project.
Music to listen to while reading this post: https://youtu.be/0pDGZtkpAPY
Taste: Mocha Coffee & Cinnamon Biscuit
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