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Embarrassed To Discuss Your Prices? Seven Common Reasons
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Many small business entrepreneurs are sometimes afraid to discuss their
fees. Learn the seven common reasons regarding this fear, and what can be
done to get out of this rut.
by Karyn Greenstreet
Contributing Author
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Last week,
a wonderfully-skilled electrician installed a new light fixture for us. He
was competent, courteous and efficient. He answered all our questions
simply, with skill and eloquence. I was amazed, as you might imagine, when I
asked him, How much do we owe you? and his embarrassed reply was, Gee, is
$50 okay?
(article continued below ...)
With the quality of work he'd done and the amount of time he put into it,
I would have expected to pay double that amount. His resistance to naming
his price reminded me of my small business clients who have the same
problem.
All entrepreneurs feel fear at some point, including attorneys,
consultants, coaches, and writers. It's a natural part of starting or
growing your business. It can be uncomfortable to take risks, to name your
price and tell a prospective customer that you want to work with them.
Roberto Goizueta, the late chairman of Coca-Cola, said, "If you take
risks, you may still fail; but if you do not take risks, you will surely
fail. The greatest risk of all is to do nothing." Put this mantra into your
head: Risk equals reward.
So, what's the problem?
I've discovered seven common reasons why we re afraid to discuss our
fees:
- Do you feel your fees are too high?
- Do you think you're not
qualified or experienced enough to charge that rate?
- Are you afraid of
rejection? (Or, possibly, afraid of acceptance, which will mean you'll have
to perform?)
- Are you afraid the prospect will raise an objection to the
fee, and you won t know how to reply?
- Are you shy and uncomfortable
talking with strangers?
- Are you afraid to take risks?
- Are you
generally uncomfortable talking about money?
Where does this come from? Is it part of your personality or is this a
behavior you learned from your past experience or culture? In many families
and cultures, it's taboo to talk about money or to ask to be paid. While it
might be personally beneficial to look inside yourself for the reasons why
you act this way, it's also important to get unstuck by using techniques
which help you move forward, such as:
Have a good pricing strategy.
Research the average fees for your type of
business so that you know your prices are in line with expectation. If you
can't get competitor pricing information, try Brenner Books (http://www.brennerbooks.com).
If your experience warrants it, increase your pricing to reflect your higher
skills, knowledge and experience. If you re not sure how to create a pricing
strategy, research it online or talk with a small business consultant or
mentor.
Establish that the prospective customer needs your services before
discussing price.
You'll feel more comfortable discussing your fees if you
know the prospective customer really want to hire you. Ask a lot of
questions to see if their problem and your solution are a good match.
Put your fees on your website and brochure.
In this way, prospects will
know your fees before the sales conversation begins.
Be honest.
Tell the prospect what the options are for your services or
products, any quantity discounts you offer, and how payment is delivered.
Practice saying this over and over again until the words and phrases slip
comfortably from your mouth.
Act confidently when delivering your fees.
Don t downplay your fees.
State your fees, then shut up. Don t make excuses for your fees, or ramble
on about them. Look directly at the prospect while delivering your fees.
Don't automatically offer discounts.
This tells the prospect that your
fees are soft and that they re negotiable. Instead, state your fees and
options and ask them to tell you which package is right for them.
Act as if.
How would an experienced person in your industry act, when
discussing her fees? Act as if you are that person and you'll find your
confidence increasing with each conversation. Practice, practice, practice.
Get training.
If you re uncomfortable with the whole sales process, get
sales training. By attending a class, you ll learn different ways of saying
the same thing, and you re bound to find a way that s right for you.
Refer out.
If the prospect really can t afford your fees and you can t
afford to offer a discount, refer that prospect to someplace where they can
find an alternative. Say, If you can t afford my fees, you can try these
online referral services where you might find someone in your price range.
Talking about your prices can be uncomfortable. But with practice and
persistence, and a willingness to overcome your fears, you can begin to have
comfortable conversations with your prospective customers.
About the Author:
Karyn Greenstreet is a self-employment expert and small business coach.
She shares tips, techniques and strategies with self-employed people to
maintain motivation, stay focused, prioritize tasks, and increase revenue
and profits. Visit her website at
www.PassionForBusiness.com
April 18, 2005
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