Pricing Advice – How to Avoid Getting Upset by Clients Pushing You Down on Price
Our businesses are our babies. That’s why it can be so upsetting when something goes wrong or doesn’t work out exactly how we’d planned. And this goes for your prices too. When a client pushes back on your prices, it can feel very personal. Sometimes you might interpret it as them saying that you and your services aren’t worth the amount you’re charging.
But this is also where our emotions tend to get in the way. Far too often, I see freelancers and small business owners charging prices that are a direct reflection of their own self-worth. So it’s only normal that this leads to upset if clients aren’t willing to pay that amount.
In Charge with Confidence, I teach participants how to set their prices based solely on the numbers. I find that this way, my mentees are able to set their rates objectively and can take the emotion out of any client negotiations. If you know how much you need to be charging to earn a decent living, it makes it much easier to say no to a client if they’re proposing a rate that falls below that figure.
Nevertheless, when a client does push back on your pricing, it can still feel frustrating or disappointing. So in this blog post, I’m suggesting 3 things you can do to avoid these negative feelings and still get paid an amount that works for you.
Pricing advice to prevent upset when clients try to push your rates down
1) Remember that value and affordability are not the same
The first thing to remember when a client pushes back on your pricing is that value and affordability are 2 very different things.
Just because they might try to negotiate, clients are not necessarily saying that your service isn’t worth the price you’ve associated with it. They might think the price reflects the value of your services, but at the same time, they might not have the budget to pay that amount.
The price you're charging for your service can absolutely be what that service is worth AND there will be clients out there who won’t be able to afford to pay it.
If we take a very extreme example, a Ferrari might well be worth the six-figure sum the company charges, but it doesn’t mean I can afford one. I’m sure they do give some clients discounts, but if I were negotiating, I’d have to realistically be able to pay somewhere in the region of the amount requested.
It’s exactly the same with your customers. There will be some potential clients out there who won’t be able to afford you and who simply aren’t the right clients for you. And that’s OK. I’m not the kind of client Ferrari is trying to appeal to. And in the same way, there will be potential clients out there who you don’t really want to be working with either.
2) Think about how you can make the price more affordable
If you do want to work with the client despite them not being able to afford your original price, think about how you can make the price more affordable for them without reducing it.
You could consider changing the payment terms, accepting different payment methods, or anything else that’s going to make it easier for the client to pay the full price.
For example, if you’ve asked for 100% of the fee upfront, perhaps you could request 50% upon confirmation and the remaining 50% further down the line. In fact, payment in instalments of any kind might be a great option for clients who are struggling to afford your price. Rather than having to part with a significant sum of money all at once, they can spread the cost over several months instead.
Similarly, different payment methods might make things easier for some clients as well. If you’re only accepting payment via bank transfer, international clients might find they are charged heavy transaction fees to pay accounts in another country or in another currency. In this blog post on international payments, I discuss how you can make things easier for your customers and reduce charges, from opening a multi-currency bank account to accepting payments via credit and debit card.
These are small things that could make a big difference when it comes to clients accepting your full fee.
3) Consider a lower price in exchange for a client concession
If you’ve already exhausted these options and the client still can’t afford to pay full price, you could consider offering them a discount. However, only give the client a discount if you’re receiving something else in return. This is how negotiation works; it’s about compromise on both sides and should never involve you agreeing to a lower rate unless you get something you want as well.
Think about how you could get the client to reduce their demands on you in exchange for a lower price.
There are many ways of going about this, all of which are discussed in this blog post on negotiating with clients. You could ask the client if you could send the deliverables in a less fiddly format than the one originally requested. Or you could offer the customer a longer deadline that would allow you to fit the work in around other client projects. Anything that would make the job easier or more enjoyable for you could make for a great alternative for the client in exchange for a discount.
By receiving something in return, it will stop you feeling so resentful of the client for pushing a lower price. And that’s not all. Getting the client to reduce their demands in exchange for a discount will also help you avoid devaluing your service. You don’t want your clients to see that you’d be willing to accept a lower rate for exactly the same service provision.
Important advice for business owners
No matter how you decide to go about things, it’s important to remember that a client pushing you down on price isn't a reflection of what your service is worth; it just means the client's budget is limited. They're not thinking about this personally. For them, it's a business decision. The client is simply considering their margins, and you need to do the same. So whatever you decide to do, don't take it personally!
Think about the negotiation in the black and white of the numbers. Can you afford to accept a lower price without having to work longer hours or charge other clients more to make up the difference? And what can you ask for as a concession from the client in return?
Always take a step back and think about the negotiation objectively before deciding whether accepting that lower price is right for you.
I really hope the above suggestions will help you avoid getting upset by clients who try to push you down on price. At the end of the day, life is full of emotional upheaval without adding clients negotiating on price to the list!
If you’d like some help to take a step back and think about a client negotiation objectively, have a look at my Custom 1:1 Mentoring sessions. I’d be more than happy to talk through a client negotiation with you, whether it relates to a quote you’ve already sent or a contract you have coming up for renewal. Whatever your situation, I’ll provide you with an external perspective and an objective point of view so you can decide how best to proceed, guided by the numbers and not by your emotions.
Hi, I’m Susie
I mentor freelancers on pricing and business finances so you can earn a decent living doing what you love.
I’m a translator, editor, chocoholic, crochet addict, animal lover, and budding gardener (get it?) who loves empowering others to achieve their goals.
