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Potential lead keeps asking me for "price" after explaining it

by jarod b
46 replies
Hey,

I did some cold calling yesterday and got a potential lead, which I lost (oh well. good luck to him). I gave him my little pitch (thanks to John) and he was like yeah he was thinking about a website. So I told him "well, the first thing I want to know is why you want a website, because I want to know exactly how you'll benefit from having a website after it's done. So first, tell me: what made you decide you wanted a website?"

And he said "to make money" (idk why people keep asking me this....); so, I went further and said "okay. So you want a website to make money. How did you come to the conclusion that a website could make you money though?" And then he quickly followed up to the question and said "Well I just want to know how much this'll cost me."

That's when I said "well typically, standard websites start around 3,000 and sometimes they can go past 40,000. But the price is entirely based on how you want a website to work for you and the amount of time it's going to take to make it possible. That's why I asked you why you wanted a website so I could get down to the problem and see what you're actually looking for."

And then, as he did before, he quickly followed up and said "well I just want to know how much a website is. I already did my research and it said websites cost between 2,500 to 5,000." So I'm trying to think, and then I said "That's true websites cost between 2,500 to 5,000, but only for standard websites. That's why I said websites typically start around 3,000, which is close to 2,500. But they can cost more depending on how you want this website to work for you. That's why I asked you why you wanted a website in the first place."

And so at this point, he said "just tell me how much it's going to cost me," and then that's when I said "If I give you a price, it's going to be a rough estimate, which means that if I tell you the website will cost 4,000, it might actually cost more than 6,000 or less than 4,000 because of the type of website you want. I need to find out where you are before I can give you a better estimate, sir."

So he just said "don't worry about it then. I was only looking to see how much a website would cost" and hung up.


-------------------------------------


Now this is my question... I went through all that with him and the only thing that could go through his ears was the cost of a website. I heard a salesman say once before that no salesmen can overcome ignorance and poverty. But how would you guys handle if this next time?
#explaining #lead #potential #price
  • Profile picture of the author iAmNameLess
    Originally Posted by jarod b View Post

    Now this is my question... I went through all that with him and the only thing that could go through his ears was the cost of a website. I heard a salesman say once before that no salesmen can overcome ignorance and poverty. But how would you guys handle if this next time?
    I don't mean any offense by this but based on what you said, the only ignorance that came across was on your behalf. Ignorance = the state of not knowing. He was wanting a price, and you were the one calling and trying to sell to him but didn't know the price of what you were selling.

    We have set prices for packages, 3 packages and if they don't fit into one of those packages, we give a custom quote based on their needs.

    Price is an issue... people don't want a price range, they want a price because their business might have limited cash flow, or they want to be able to budget appropriately. A lot of businesses can't budget properly if you say well it could be 2K or 6K maybe even 10k. A website is a website.... I'd recommend having set prices... when they want marketing or want to do more than a website, that is when you have to really customize what you can do and when the price varies.

    When he keeps pressing the price issue, we have always had success saying, well... we have 3 packages ranging from whatever to whatever, compare features, and ask which package they feel fits them the best or if they would like a more customized quote. When you get them changing their mindset from how much is it going to cost, to which package would you like, you almost always have a winner.

    That's my take on it...
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    • Profile picture of the author jarod b
      Originally Posted by iAmNameLess View Post

      I don't mean any offense by this but based on what you said, the only ignorance that came across was on your behalf. Ignorance = the state of not knowing. He was wanting a price, and you were the one calling and trying to sell to him but didn't know the price of what you were selling.

      We have set prices for packages, 3 packages and if they don't fit into one of those packages, we give a custom quote based on their needs.

      Price is an issue... people don't want a price range, they want a price because their business might have limited cash flow, or they want to be able to budget appropriately. A lot of businesses can't budget properly if you say well it could be 2K or 6K maybe even 10k. A website is a website.... I'd recommend having set prices... when they want marketing or want to do more than a website, that is when you have to really customize what you can do and when the price varies.

      When he keeps pressing the price issue, we have always had success saying, well... we have 3 packages ranging from whatever to whatever, compare features, and ask which package they feel fits them the best or if they would like a more customized quote. When you get them changing their mindset from how much is it going to cost, to which package would you like, you almost always have a winner.

      That's my take on it...

      What you said is actually a great idea that I want to try (throw in the 3 packages and a more customized quote if the packages don't fit them.) But there's something you mentioned that confuses me.

      You mentioned "when they want marketing or want to do more than a website. That is when you have to really customize what you can do and when the price varies."

      How come people can get 20K "website projects" that don't include marketing services at all then? How is this possible? Because I keep seeing headlines talk about "website projects" as if it's only the website that a client is paying for and not the marketing. I sure would like to know that. I'm very confused by this...
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  • Profile picture of the author Aaron Doud
    This is why even if you don't have set packages you should always have some kind of basic package.

    "We design websites starting at $3,000"

    "It will cost $3,000 if you want one of our basic(use the term you want) website packages. Depending on your specific needs you may need something more advance. Would you like to go with the basic package or would you like to discuss options?"

    I know people here promote pricing based on value to the client but IMO in the real world it just pisses people off. Pricing based on value is about you (aka not leaving dollars on the table). The website and sales process should be about the prospect. So to get the info you need you have to get his buy in on pricing a custom website. otherwise just price your basic to him.

    So have one or more packages to default to. Beyond that change up your word tracks to avoid pissing him off. Had I been on the phone I would have hung up with you as well.

    I've seen guys in the car world that are so focused on controlling the sale (since sales trainers love to tell people that is the key to selling) that they lose any chance of making it. If the guy wants a price give him the price. If you need more info then tell him why you need the info and how long it should take to get the price.

    Also some of your wording was discounting the value of a website. Instead try things like.

    "I'm glad you see the value in a web presence. I'm sure we will be able to create a great website for you that will help you sell more. Can you tell me a little about your sales process and how you see your web presence fitting into it?"

    "Well I just want to know how much this'll cost me."

    "We have packages starting at $3,000 though exact costs vary based on the needs of our clients. That is the reason I asked about your sales process so we can tie it into your sales process."
    -------------------------------------------------------------------------------

    "well I just want to know how much a website is. I already did my research and it said websites cost between 2,500 to 5,000."

    "Websites can cost from $50 to over $1 million actually. It really depends on what the company is looking for their web presence to be. As for pricing we can get you started with a basic website for $3,000. It may be the perfect fit for your business but if you are willing I would like to take a few moments to talk about your company, it's sales process, and how you would like your web presence to tie into it. Do you have time now for a few questions or would tomorrow be better?"
    ---------------------------------------------------------------------------------
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    • Profile picture of the author jarod b
      Originally Posted by Aaron Doud View Post

      This is why even if you don't have set packages you should always have some kind of basic package.

      "We design websites starting at $3,000"

      "It will cost $3,000 if you want one of our basic(use the term you want) website packages. Depending on your specific needs you may need something more advance. Would you like to go with the basic package or would you like to discuss options?"

      I know people here promote pricing based on value to the client but IMO in the real world it just pisses people off. Pricing based on value is about you (aka not leaving dollars on the table). The website and sales process should be about the prospect. So to get the info you need you have to get his buy in on pricing a custom website. otherwise just price your basic to him.

      So have one or more packages to default to. Beyond that change up your word tracks to avoid pissing him off. Had I been on the phone I would have hung up with you as well.

      I've seen guys in the car world that are so focused on controlling the sale (since sales trainers love to tell people that is the key to selling) that they lose any chance of making it. If the guy wants a price give him the price. If you need more info then tell him why you need the info and how long it should take to get the price.

      Also some of your wording was discounting the value of a website. Instead try things like.

      "I'm glad you see the value in a web presence. I'm sure we will be able to create a great website for you that will help you sell more. Can you tell me a little about your sales process and how you see your web presence fitting into it?"

      "Well I just want to know how much this'll cost me."

      "We have packages starting at $3,000 though exact costs vary based on the needs of our clients. That is the reason I asked about your sales process so we can tie it into your sales process."
      -------------------------------------------------------------------------------

      "well I just want to know how much a website is. I already did my research and it said websites cost between 2,500 to 5,000."

      "Websites can cost from $50 to over $1 million actually. It really depends on what the company is looking for their web presence to be. As for pricing we can get you started with a basic website for $3,000. It may be the perfect fit for your business but if you are willing I would like to take a few moments to talk about your company, it's sales process, and how you would like your web presence to tie into it. Do you have time now for a few questions or would tomorrow be better?"
      ---------------------------------------------------------------------------------
      "So to get the info you need you have to get his buy in on pricing a custom website. otherwise just price your basic to him."

      How would you suggest I get his "buy-in"? Is that the same thing that iAmNameLess talks about when he mentions that the prospect can choose a more customized website if they see that the 3 packages aren't a good fit for them?

      And I understand what you mean about controlling the conversation. Thinking about what you said though, I agree that I was controlling the conversation. But actually that was unintentional now that I realized what I was doing (lol). So now I'm just going to be more flexible about how I handle conversations from now on.
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  • Profile picture of the author TeamBringIt
    Originally Posted by jarod b View Post

    Hey,

    I did some cold calling yesterday and got a potential lead, which I lost (oh well. good luck to him). I gave him my little pitch (thanks to John) and he was like yeah he was thinking about a website. So I told him "well, the first thing I want to know is why you want a website, because I want to know exactly how you'll benefit from having a website after it's done. So first, tell me: what made you decide you wanted a website?"

    And he said "to make money" (idk why people keep asking me this....); so, I went further and said "okay. So you want a website to make money. How did you come to the conclusion that a website could make you money though?" And then he quickly followed up to the question and said "Well I just want to know how much this'll cost me."

    That's when I said "well typically, standard websites start around 3,000 and sometimes they can go past 40,000. But the price is entirely based on how you want a website to work for you and the amount of time it's going to take to make it possible. That's why I asked you why you wanted a website so I could get down to the problem and see what you're actually looking for."

    And then, as he did before, he quickly followed up and said "well I just want to know how much a website is. I already did my research and it said websites cost between 2,500 to 5,000." So I'm trying to think, and then I said "That's true websites cost between 2,500 to 5,000, but only for standard websites. That's why I said websites typically start around 3,000, which is close to 2,500. But they can cost more depending on how you want this website to work for you. That's why I asked you why you wanted a website in the first place."

    And so at this point, he said "just tell me how much it's going to cost me," and then that's when I said "If I give you a price, it's going to be a rough estimate, which means that if I tell you the website will cost 4,000, it might actually cost more than 6,000 or less than 4,000 because of the type of website you want. I need to find out where you are before I can give you a better estimate, sir."

    So he just said "don't worry about it then. I was only looking to see how much a website would cost" and hung up.


    -------------------------------------


    Now this is my question... I went through all that with him and the only thing that could go through his ears was the cost of a website. I heard a salesman say once before that no salesmen can overcome ignorance and poverty. But how would you guys handle if this next time?
    Wow...You are asking a potential client, why they want a product or service? You are not starting of well...

    Why did you ask, why the client wanted a website? You are asking the client, how they will benefit..from having a website? YOU are the one that , tells the client the BENEFIT of having a website and WHY they NEED a website.

    You don't question them on these things. Sorry, for the caps but you approached this call, in the wrong way in my opinion. Also, in the future know your prices and give them a straight answer.

    I could be wrong, but aren't you suppose.. to just get an appointment, by cold calling? The price points and selling happen when you see them at their office.

    I give you credit, you are calling businesses, but you need to re-think your strategy and how to talk to them on the phone.

    I say, my words in a positive way....Good Luck!
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    • Profile picture of the author jarod b
      Originally Posted by TeamBringIt View Post

      Wow...You are asking a potential client, why they want a product or service? You are not starting of well...

      Why did you ask, why the client wanted a website? You are asking the client, how they will benefit..from having a website? YOU are the one that , tells the client the BENEFIT of having a website and WHY they NEED a website.

      You don't question them on these things. Sorry, for the caps but you approached this call, in the wrong way in my opinion. Also, in the future know your prices and give them a straight answer.

      I could be wrong, but aren't you suppose.. to just get an appointment, by cold calling? The price points and selling happen when you see them at their office.

      I give you credit, you are calling businesses, but you need to re-think your strategy and how to talk to them on the phone.

      I say, my words in a positive way....Good Luck!
      Yeah I know. To be honest with you though, I wasn't sure about how to handle the appointment setting part. I looked at other scripts and read so many books about getting paid more for web design that it became hard for me to figure out what questions to ask and what to say during the cold calling (and also WHEN to ask certain questions. Should I ask these questions when I'm pre-qualifying the prospect? Or should I ask them during meeting?)

      And the reason I asked the client why they wanted a website was because I was trying to understand their situation to see how my service could actually benefit them. Not to just tell them how a website could generally benefit, but to see how a website would specifically benefit them based on the current issues and dissatisfactions their facing right now... Otherwise, I'm just giving them the same website that the last guy gave them. See? And so I'm just trying to see how life looks on their side of the road and how I could help. That's why I asked why they wanted a website — not to come off as "too personal" or anything like that.

      And yeah, I am suppose to be getting the appointment. That question just happens to be the first pre-qualifying question I ask after giving them my pitch. But now that I'm thinking about what you said, I'm starting to reconsider my strategy, because apparently, what I'm doing right now isn't working...
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    • Profile picture of the author Deidra Renee
      Originally Posted by TeamBringIt View Post

      Wow...You are asking a potential client, why they want a product or service? You are not starting of well...

      Why did you ask, why the client wanted a website? You are asking the client, how they will benefit..from having a website? YOU are the one that , tells the client the BENEFIT of having a website and WHY they NEED a website.

      You don't question them on these things. Sorry, for the caps but you approached this call, in the wrong way in my opinion. Also, in the future know your prices and give them a straight answer.

      I could be wrong, but aren't you suppose.. to just get an appointment, by cold calling? The price points and selling happen when you see them at their office.

      I give you credit, you are calling businesses, but you need to re-think your strategy and how to talk to them on the phone.

      I say, my words in a positive way....Good Luck!
      I'm pretty sure this prospect could have been closed over the phone. He wasn't interested in an appointment, he was interested in a website but we won't go into that because 90% of the people on this forum don't believe anything can be sold over the phone.

      To the OP, follow the advice given in this thread and you should be fine on your next calls, you almost had one. Learn from the mistakes you made with this prospect and adjust and the sales will follow.

      Ps. Dont just ask for an appointment just because people say that's what you should do. If you're comfortable closing over the phone, do that, if not set the appointment.
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      • Profile picture of the author jarod b
        Originally Posted by Deidra Renee View Post

        I'm pretty sure this prospect could have been closed over the phone. He wasn't interested in an appointment, he was interested in a website but we won't go into that because 90% of the people on this forum don't believe anything can be sold over the phone.

        To the OP, follow the advice given in this thread and you should be fine on your next calls, you almost had one. Learn from the mistakes you made with this prospect and adjust and the sales will follow.

        Ps. Dont just ask for an appointment just because people say that's what you should do. If you're comfortable closing over the phone, do that, if not set the appointment.
        Yeah. I know. Everybody keeps telling me I almost had a client. I'm not discouraged about this though. Messing up was actually something I prepared to experience. In fact, I'm a strong believer that success doesn't exist without failure (not to sound cliche lol, but seriously though). I actually would close over the phone, but I'm not trying to do too many things at once. Learned that lesson too many times (learn to manage your responsibilities and obligations people... it's the #1 stress influencer IMO).
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  • Profile picture of the author cshilling22
    What type of business was this? Do you really think that they would need a $40,000 website? It is kind of strange that you would tell him that websites could be in the tens of thousands if you don't think that he would be in that category.

    Do you have a minimum price for an entry level website? If you do then you could easily tell him that your minimum website is XXXX and the price can increase based on individual needs, similar to the advice that you have already been given.

    Honestly it sounds like you were making the mistake of asking questions to try to get the answers you think you need, but not actually listening. He was telling you he had already looked into it, decided a website could be beneficial to help him increase his revenue, and wanted information on pricing. This could be the perfect prospect based on that information because he feels he needs a website and already sees value in it. He also told you that his research shows a website should be between $2,500 and $5,000. That means he is willing and comfortable spending within that price range for a website. So you have a potential customer telling you he wants a website and understands the value of it, and exactly what his price range is. He also is telling you that what he wants from you is to know if a website from you is within that price range, and your response to this is to say, "Yes, but why do you really, really want a website?" It is like you were fighting against the sale and as I read I knew that the end result was going to be him hanging up on you.
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    • Profile picture of the author jarod b
      Originally Posted by cshilling22 View Post

      What type of business was this? Do you really think that they would need a $40,000 website? It is kind of strange that you would tell him that websites could be in the tens of thousands if you don't think that he would be in that category.

      Do you have a minimum price for an entry level website? If you do then you could easily tell him that your minimum website is XXXX and the price can increase based on individual needs, similar to the advice that you have already been given.

      Honestly it sounds like you were making the mistake of asking questions to try to get the answers you think you need, but not actually listening. He was telling you he had already looked into it, decided a website could be beneficial to help him increase his revenue, and wanted information on pricing. This could be the perfect prospect based on that information because he feels he needs a website and already sees value in it. He also told you that his research shows a website should be between $2,500 and $5,000. That means he is willing and comfortable spending within that price range for a website. So you have a potential customer telling you he wants a website and understands the value of it, and exactly what his price range is. He also is telling you that what he wants from you is to know if a website from you is within that price range, and your response to this is to say, "Yes, but why do you really, really want a website?" It is like you were fighting against the sale and as I read I knew that the end result was going to be him hanging up on you.
      Well actually, I was saying websites cost 3,000 to 40,000 just to set his expectations of how much a website costs. Not because I think they need a 40,000 web project.

      But I agree that I was trying to get the answers I wanted instead of listening more (now that you and Aaron Doud have made that clear...). And like you said, he could have been the a great prospect to schedule. So I actually was ignorant on my behalf (iAmNameLess) now that I see where I messed up at. I'm going to take you guys advice and do it now.


      But my last question is how do I go about doing the research to create 3 website packages for my clients?
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  • Profile picture of the author Aaron Doud
    What I meant by buy in was that he wanted to discuss it. In your version you are fighting with him. He is an adversary vs. you being an ally there to help him. I gave some simple word tracks to hopefully get them to want to do it.

    But sometimes they just want the package. So sell them that and move on.
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    • Profile picture of the author jarod b
      Originally Posted by Aaron Doud View Post

      What I meant by buy in was that he wanted to discuss it. In your version you are fighting with him. He is an adversary vs. you being an ally there to help him. I gave some simple word tracks to hopefully get them to want to do it.

      But sometimes they just want the package. So sell them that and move on.
      Gotcha. But my question is do you have any advice on how I can start working on packaging my websites?
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      • Profile picture of the author MaxwellB
        Originally Posted by jarod b View Post

        Gotcha. But my question is do you have any advice on how I can start working on packaging my websites?
        Brother we've talked about this extensively! :rolleyes: What happened?

        Catch me on skype I'll help you create packages but really you only need to search for web design, most of the popular small business web design companies have packages on their website you can go off of.
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        • Profile picture of the author jarod b
          Originally Posted by MaxwellB View Post

          Brother we've talked about this extensively! :rolleyes: What happened?

          Catch me on skype I'll help you create packages but really you only need to search for web design, most of the popular small business web design companies have packages on their website you can go off of.
          Getting on skype right now!
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          • Profile picture of the author AndrewCavanagh
            "You already have a good idea of the price
            of a website. There can be a lot of variation
            from one provider to the next but you're right on
            target with your $2,500."

            "What I think must be much more important to you is
            whether you can make enough sales and profits in a
            reasonable time to justify the price.

            "That's what I'd like to work out with you.

            "So can I ask you a few questions and see if it's going
            to be profitable for you to have a website at all...?"


            I think you were on the right track trying to get OFF
            the topic of price and onto more important issues but
            you just didn't manage it.

            Kindest regards,
            Andrew Cavanagh
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            • Profile picture of the author jarod b
              Originally Posted by AndrewCavanagh View Post

              "You already have a good idea of the price
              of a website. There can be a lot of variation
              from one provider to the next but you're right on
              target with your $2,500."

              "What I think must be much more important to you is
              whether you can make enough sales and profits in a
              reasonable time to justify the price.

              "That's what I'd like to work out with you.

              "So can I ask you a few questions and see if it's going
              to be profitable for you to have a website at all...?"


              I think you were on the right track trying to get OFF
              the topic of price and onto more important issues but
              you just didn't manage it.

              Kindest regards,
              Andrew Cavanagh
              Thanks for the tip!
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  • Profile picture of the author Aaron Doud
    It is not something I really have great knowledge of. I'm sorry. Hopefully Ian comes back in and he can offer some real world advice.
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  • Profile picture of the author Jack Gordon
    That whole conversation was a bit maddening. The others have done a good job of showing you where you went off the rails, so I won't chime in there.

    However, I would like to make a larger point that may be useful.

    You showed a complete lack of instinct in your responses to him. What I mean by that is the two of you were obviously having totally different conversations. Since you were the salesman and he was the client, it was your responsibility to adapt.

    You should have sensed that he was not ready to talk to you about how many thousands he might potentially spend. He was only interested in finding out if you were worth his effort to consider for the job. By attempting to push him into a bigger conversation, you were being inattentive to his emotional need to feel like he was driving the process.

    And that is where you lost him. But that is not the point of my post. I was just laying the groundwork. Because my real point is that you came across as a pushy salesperson. And what you needed to be was a problem solver who knows intimately the issues that keep your prospect awake at night.

    He doesn't want to sell more things. He wants a bigger house, nicer car, faster boat, younger girlfriend, more tropical vacation, ivy league college education for his kids, etc.

    Relax. Get in the zone. Be a human being, not a salesperson. Talk to your prospects like you understand who they are and what they need (want). And if you don't know who they are, how can you ever hope to effectively speak their language?

    And I don't mean that you need to find out which of the above things he wants. What he wants from you is to be understood. Business is slow. Why? Is it his slow season? Is there a supply chain disruption? Is he in a dying industry? Do your research. Learn what is keeping him up at night, and relate to him on that. Once he is confident that you "get" his concerns, he'll be much more open to considering you as part of the solution (no matter what you charge).

    How do you do all of this? Have you ever held a job? Do you have any real life experience to draw on? It is MUCH easier to go with what you know. Twice now, I have spent years "on the inside" of an industry, only to leave that industry and start a business catering to it. Both times have been successful. Why? Because when I spoke to my prospects, they knew that I knew who they were. Not long before, I was one of them. I spoke the language, and I had some credibility.

    Almost every other thread on this forum says, at some point, that you should focus on a niche. There is a good reason for that. It works.

    Get to know your prospects, and you will have much more to talk about than how much money they are willing to spend.
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  • Profile picture of the author MouseandMice
    I'd suggest that you read some sales books along with some books on persuasion before cold-calling anymore... unless you want word to spread about you... in a negative way.
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    • Profile picture of the author jarod b
      Originally Posted by MouseandMice View Post

      I'd suggest that you read some sales books along with some books on persuasion before cold-calling anymore... unless you want word to spread about you... in a negative way.
      I doubt if it ruins my reputation lol. I've read countless stories about how horrible people were before becoming amazing salesmen. But I'm already learning about persuasion and sales, so that's a work in progress as of right now :p. Thanks for the advice though.
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  • Profile picture of the author Jason Kanigan
    If the prospect asks you a question twice, you have to answer it.

    Read this:

    http://www.warriorforum.com/offline-...vanishing.html
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    • Profile picture of the author jarod b
      Originally Posted by Jason Kanigan View Post

      If the prospect asks you a question twice, you have to answer it.

      Read this:

      http://www.warriorforum.com/offline-...vanishing.html
      Your sales process reminds me of Neil Rackham's spin selling process. His sales process is based on emotion-driven decisions that basically get the prospects to sell to themselves, and I love it, which explains why my first pre-qualification question was about "why the prospect wanted a website." But you gave me a lot of incites about how to approach them next time, so I'm most certainly going to use your advice -- no doubt about it.

      There is something that I'd like to try with your sales process though, and I'm just curious about whether you think this is a good idea or not (I also want to know what iAmNameLess thinks too, in case he happens to be reading this):

      Okay. So...

      iAmNameLess suggested that I should put together 3 packages for this type of situation, because prospects apparently are likely to be more successful at becoming a client IF they continue to "press the price issue". And then you, Jason, suggested that I instill a process with the prospect if the prospect is comfortable with allowing it to happen. Now, this is what I thought of when I read your thread, Jason:

      Okay: suppose I interrupted the client like you said, explained my process to them, but then, when the client insists a price, I tell them what iAmNameLess would have done (instead of giving them a price range), which would be "Well I have 3 packages that range from $X,XXX to $X,XXX, which you can choose from. But if they aren't a good fit, you can always go with a more customized quote. Okay? So my first package is $X,XXX. This one... [then I explain this package and the other packages also]"

      Tell me what you two think about this.
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  • Profile picture of the author J R Salem
    You will be fine - don't worry about perception.

    But people like this are the ones you don't wanna work with long-term.

    They are just looking to buy a service.
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  • Profile picture of the author bsummers
    The reason why the sales did not go through is because you did not give him what he wanted to know. You keep saying between this amount when you should just state a specific. It is important that you have a basic package, then make the necessary changes once the say what they really need. I was reading it and I got irritated myself because you keep putting it off. Next time, just set a basic package, etc.
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    • Profile picture of the author jarod b
      Originally Posted by bsummers View Post

      The reason why the sales did not go through is because you did not give him what he wanted to know. You keep saying between this amount when you should just state a specific. It is important that you have a basic package, then make the necessary changes once the say what they really need. I was reading it and I got irritated myself because you keep putting it off. Next time, just set a basic package, etc.
      Well, right now, my problem is putting an actual package together. I did a good deal of research last night and came up with some solutions I could bring to the table, but now I need to break them down into 3 packages, which is quite overwhelming to think about. I'm going to figure it out somehow though.
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  • Profile picture of the author Aaron Doud
    You may not need 3 packages. You may only need one and go custom beyond that.

    Example: 5 page website with custom pictures and content = $3,000
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  • Profile picture of the author Jack Gordon
    I'm with Aaron. Why go complicated when most people crave simplicity?

    Figure out your basic offering, cover your cost, and build an a la carte menu of bigger, better, stronger offerings to compliment it.

    This is where many smart people think long term and use the basic product as a loss leader / relationship builder for the purpose of building a client base that can be sold to for years to come (i.e. maintenance, SEO, email marketing, etc)
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  • Profile picture of the author misterme
    Originally Posted by jarod b View Post

    Your sales process reminds me of Neil Rackham's spin selling process. His sales process is based on emotion-driven decisions that basically get the prospects to sell to themselves, and I love it, which explains why my first pre-qualification question was about "why the prospect wanted a website."
    Reading your transcript, I felt the hurt! Ouch. You lost him because in his mind, you were dodging giving a firm price (I know you can't really but that's what he got from your call). And as he kept bringing it up, you made it into a whole conversation, so you're going to lose people when price is the first foremost discussed topic - unless you can beat everyone's price.

    So one of the things you need to learn is how to take care of mentioning price, which has already been covered by those saying give a range or a starting price. And then you need to bring the conversation back to where you were instead of staying on price so early in the discussion because you want the focus to be on the benefits, right?

    Then when you finally get into the details I'd go with more than one package only because it's easier to sell packages than trying to sell a base package and add custom options to it. That's like trying to fill a glass of water a drop at a time. Selling packages from high to low is like taking a full glass of water and taking out a few sips. The latter method leaves you with more water more easily.
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    • Profile picture of the author jarod b
      Originally Posted by misterme View Post

      Reading your transcript, I felt the hurt! Ouch. You lost him because in his mind, you were dodging giving a firm price (I know you can't really but that's what he got from your call). And as he kept bringing it up, you made it into a whole conversation, so you're going to lose people when price is the first foremost discussed topic - unless you can beat everyone's price.

      So one of the things you need to learn is how to take care of mentioning price, which has already been covered by those saying give a range or a starting price. And then you need to bring the conversation back to where you were instead of staying on price so early in the discussion because you want the focus to be on the benefits, right?

      Then when you finally get into the details I'd go with more than one package only because it's easier to sell packages than trying to sell a base package and add custom options to it. That's like trying to fill a glass of water a drop at a time. Selling packages from high to low is like taking a full glass of water and taking out a few sips. The latter method leaves you with more water more easily.
      Well it's not that I'm focusing on the benefits, because I'm actually not. I'm focused on how they came to the conclusion of needing a website first so I can get in their shoes and show them why they might not need what they think they need and give them something better or at least something for them to get by. Not just general features that gamble with how they might be able to benefit from having a website. See? Hopefully that makes sense.

      But I'm actually working on the package right now. My only problem is the pricing and figuring out how my packages will generally help customers. If someone see this and can help me package my service, that would be great though.
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  • Profile picture of the author Blase
    Originally Posted by jarod b View Post

    Hey,

    I did some cold calling yesterday and got a potential lead, which I lost (oh well. good luck to him). I gave him my little pitch (thanks to John) and he was like yeah he was thinking about a website. So I told him "well, the first thing I want to know is why you want a website, because I want to know exactly how you'll benefit from having a website after it's done. So first, tell me: what made you decide you wanted a website?"

    And he said "to make money" (idk why people keep asking me this....); so, I went further and said "okay. So you want a website to make money. How did you come to the conclusion that a website could make you money though?" And then he quickly followed up to the question and said "Well I just want to know how much this'll cost me."

    That's when I said "well typically, standard websites start around 3,000 and sometimes they can go past 40,000. But the price is entirely based on how you want a website to work for you and the amount of time it's going to take to make it possible. That's why I asked you why you wanted a website so I could get down to the problem and see what you're actually looking for."

    And then, as he did before, he quickly followed up and said "well I just want to know how much a website is. I already did my research and it said websites cost between 2,500 to 5,000." So I'm trying to think, and then I said "That's true websites cost between 2,500 to 5,000, but only for standard websites. That's why I said websites typically start around 3,000, which is close to 2,500. But they can cost more depending on how you want this website to work for you. That's why I asked you why you wanted a website in the first place."

    And so at this point, he said "just tell me how much it's going to cost me," and then that's when I said "If I give you a price, it's going to be a rough estimate, which means that if I tell you the website will cost 4,000, it might actually cost more than 6,000 or less than 4,000 because of the type of website you want. I need to find out where you are before I can give you a better estimate, sir."

    So he just said "don't worry about it then. I was only looking to see how much a website would cost" and hung up.


    -------------------------------------


    Now this is my question... I went through all that with him and the only thing that could go through his ears was the cost of a website. I heard a salesman say once before that no salesmen can overcome ignorance and poverty. But how would you guys handle if this next time?

    I don't come here much anymore for reasons that I will
    keep to myself, but I just had to comment on this post.

    If I understand this correctly the customer is asking how
    much a website is going to cost.

    Jarod, keeps dancing around the question. In my experience
    this is a drop dead easy sale to make.

    The customer has already said he knows about what a site costs.
    He even quotes some numbers, this guy is ready to buy.

    My next question to him is Mr. Customer, based on your research
    what do you think a fair price for the website you want is? Then shut up and let him answer.

    So this guy takes the low road and says, "I think $2,500 is a fair price.

    Then you say, Mr Customer, if I agreed to partner with you and provide
    you a website for $2,500 are you ready to start today? Then shut up.

    You are either going to get it or lose it right now, but being he quoted the price
    you should get it most of the time.

    Take the order, you can always get more out of a client later if you
    way under bid or if he wants the moon. But you start off by building
    what you sell for $2,500. Then if he wants more it's an upgrade.
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    • Profile picture of the author jarod b
      Originally Posted by Blase View Post

      I don't come here much anymore for reasons that I will
      keep to myself, but I just had to comment on this post.

      If I understand this correctly the customer is asking how
      much a website is going to cost.

      Jarod, keeps dancing around the question. In my experience
      this is a drop dead easy sale to make.

      The customer has already said he knows about what a site costs.
      He even quotes some numbers, this guy is ready to buy.

      My next question to him is Mr. Customer, based on your research
      what do you think a fair price for the website you want is? Then shut up and let him answer.

      So this guy takes the low road and says, "I think $2,500 is a fair price.

      Then you say, Mr Customer, if I agreed to partner with you and provide
      you a website for $2,500 are you ready to start today? Then shut up.

      You are either going to get it or lose it right now, but being he quoted the price
      you should get it most of the time.

      Take the order, you can always get more out of a client later if you
      way under bid or if he wants the moon. But you start off by building
      what you sell for $2,500. Then if he wants more it's an upgrade.
      I'll remember that. Thanks.
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  • Profile picture of the author Delta223
    According to Oren Klaff (Pitch Anything), he was applying the analyst frame on you. This is when a prospect asks for more information than is suitable at that point in the relationship. he didn't know anything about you, your services, whether you two would be a good fit to work together, etc.

    Though others would disagree, Oren would tell you that the person you spoke to was at best a low value client, at worst a time waster.
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  • Profile picture of the author misterme
    Originally Posted by jarod b View Post

    Well it's not that I'm focusing on the benefits, because I'm actually not. I'm focused on how they came to the conclusion of needing a website first so I can get in their shoes and show them why they might not need what they think they need and give them something better or at least something for them to get by. Not just general features that gamble with how they might be able to benefit from having a website. See? Hopefully that makes sense.
    Oh, it makes complete sense to me all right but that's not what you were asking originally when you started this thread. Your strategy didn't work out and so you had asked how this could be handled and I answered by saying "build the benefits" but somehow you're rejecting that by defaulting back to your preferred standard operating procedure of attempting to get them to talking of how they came to thinking they may need a website, because maybe that's what you'd like to have happen, even though it doesn't work in these cases... which is why you started this thread. You have to change what you're doing because if you don't you'll bang your head every time until you do something that works more in harmony with how the world operates instead of how you'd like it to work.

    One of the things you're doing is trying to apply a sales process on a prospecting call when you haven't yet "earned" the right to progress the call to that point.
    The other thing that went wrong is that he brought up price... a couple of times... and it wasn't handled well.
    Blaming the prospect ("no salesmen can overcome ignorance and poverty") may soothe the ego - but it's not the answer in this case.

    Does that make sense to you?

    I had a call today. She had a starting price given to her of $4000. But what she was talking about was more like $10,000. And she was bringing it up early in the call.

    But I just know from doing this for years I needed to build more of a bulkhead first.

    So there are ways to answer price questions that don't come across as evasive or confusing, and get back to building value and rapport first - which is what I did. THEN when it came up again I told her what my services could cost... in a way that sounds very normal, straightforward and acceptable.

    And it went fine. Could've easily gone the other way if I didn't do what I did.

    If you're questioning how to handle calls like that, I think that's something one should learn to do.
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    • Profile picture of the author jarod b
      Originally Posted by misterme View Post

      Oh, it makes complete sense to me all right but that's not what you were asking originally when you started this thread. Your strategy didn't work out and so you had asked how this could be handled and I answered by saying "build the benefits" but somehow you're rejecting that by defaulting back to your preferred standard operating procedure of attempting to get them to talking of how they came to thinking they may need a website, because maybe that's what you'd like to have happen, even though it doesn't work in these cases... which is why you started this thread. You have to change what you're doing because if you don't you'll bang your head every time until you do something that works more in harmony with how the world operates instead of how you'd like it to work.

      One of the things you're doing is trying to apply a sales process on a prospecting call when you haven't yet "earned" the right to progress the call to that point.
      The other thing that went wrong is that he brought up price... a couple of times... and it wasn't handled well.
      Blaming the prospect ("no salesmen can overcome ignorance and poverty") may soothe the ego - but it's not the answer in this case.

      Does that make sense to you?

      I had a call today. She had a starting price given to her of $4000. But what she was talking about was more like $10,000. And she was bringing it up early in the call.

      But I just know from doing this for years I needed to build more of a bulkhead first.

      So there are ways to answer price questions that don't come across as evasive or confusing, and get back to building value and rapport first - which is what I did. THEN when it came up again I told her what my services could cost... in a way that sounds very normal, straightforward and acceptable.

      And it went fine. Could've easily gone the other way if I didn't do what I did.

      If you're questioning how to handle calls like that, I think that's something one should learn to do.
      I can agree that i might be mixing the sales process into the prospecting process. But I thought cold calling was a part of the sales process?

      And I'm not entirely blaming the prospect, now that I'm aware of what I could've did instead. So yes, i do understand what you're saying.

      But this is what I dn't get. You talk about building value and rapport first, but how do you -- personall -- go about doing that if you're cold calling? And i thought building value was about getting the client to see exactly how useful you are to them?
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      • Profile picture of the author misterme
        Originally Posted by jarod b View Post

        I can agree that i might be mixing the sales process into the prospecting process. But I thought cold calling was a part of the sales process?
        Some do it that way. I think what you're trying takes more time than you're going to get on a initial cold phone call, most times. I could be wrong. But it sounds like what you want to do is what you can get into once the guy's agreed to sit down with you. And maybe you're not seeing these people and you want to do your sales on the phone, I wouldn't know.

        But I see cold calling as the task of turning every rock until you find the interested person first before you sell them anything. Basically it's, "Mr. Jones, here's my value proposition blah blah... is that something you want?"

        Now if he talks about it, you can build on that.

        If he says no, you move on to the next number.

        If he cuts you off to ask price you need to be able to gently brush that aside and get back to the topic. It may have been a knee jerk response. If he follows your lead, great.

        "Mr. Jones, 'be happy to give you that information and just so I know what it is exactly you want to have done may I ask you a few questions first?"

        And what's happened there is

        You've just told him you WILL give him a price, so you're not dodging.
        And it makes sense to have to know if he has something in mind so you can give him the right price.

        And you got his permission to ask him questions which means he's agreed to answer them before getting the price.

        And NOW you have a window to build value by asking questions that make him realize that value.

        But sometimes people cut you off and press the price question again like this guy did, and in those case you need to answer by giving a number or come across as dodging and untrustworthy like you're skirting the issue or trying to make it sound confusing.

        So in those cases, jump to giving the price, which you're going to do anyway eventually like this:

        Give a range.

        "Well it could be anywhere from $LEAST up to $HUGE but if you're like most of my clients it'll be somewhere around $What-It'll-Probably-Cost, is that what you have in mind?" OR if it's way early in the call and you want to get back to asking questions, use variations like,
        "Well it could be anywhere from $LEAST up but so I know what it is exactly you want to have done may I ask you a few questions first?"
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        • Profile picture of the author jarod b
          Originally Posted by misterme View Post

          Some do it that way. I think what you're trying takes more time than you're going to get on a initial cold phone call, most times. I could be wrong. But it sounds like what you want to do is what you can get into once the guy's agreed to sit down with you. And maybe you're not seeing these people and you want to do your sales on the phone, I wouldn't know.

          You're very close about how I want to do business! But let me clear this up.

          I would love to meet people in person, but considering that I have no car, which would allow me to go to meetings and get to them on time, I can only work over the phone and do meetings over the phone. So my business is pretty much remotely controlled due to certain circumstances (and I know I'm 20 years old and should have a car...).

          Now, as far as how the sales process works (including what I currently believe about it vs the traditional one), I believe that as a web designer, I'm more of a consultant than a specialist. And as a consultant, I'm here to advise businesses on how they can grow and expand their online empire.

          With that said, I was originally going to follow the traditional sales process, which was to do an opening, an investigation, a proposed solution, and then a closing -- UNTIL I started seeing that a A LOT of the successfully prolonged experts in todays industries used an entirely different approach (especially the ones who excelled through the 2007 recession epidemic).

          See, I started seeing that a lot of the great salesmen had their own sales process and had taken pieces from other salesmen, but most noticeably that these weren't the folks that jumped at a deal the second they could nail it.

          I don't know about you and some of the other guys that posted on this thread, but I find it intriguing that someone who works on solving problems with a potential client for 2 weeks, versus someone who works on solving all of their potential client's problems today, makes much more money than the other guy that wants to solve it all today...

          And that just puzzles me.

          And so, the more I'm learning about this, the more I'm realizing that there is a big difference between someone who is trying to sale prices vs someone who is trying to sell solutions. I actually JUST finished reading a book that was released by FreshBooks for free the other day, which talks about how the FreshBooks CEO (Mike McDermont) started making a killing as a web designer because he started focusing on his clients' problem more than the price. And prior to reading this book, and creating this thread itself, I discovered a sales process called SPIN selling by Neil Rackham, which officially let me know that I was onto something that a lot of people are obviously not aware of, despite the fact that Jason Kanigan's advice is heavily connected to all of this that I'm saying right now. And so, what I was saying is that this is really my first time freelancing, ever. So I'm still learning about how to run a business and make sales.

          I have a basic idea of how to run a business, and a lot of insights about how the sells process works, but I'm still not sure how to do the sales process properly, which is why I'm pretty much all over the place (obviously you can see that... lol).

          But, earlier I just told you that I just might be mixing the sales process into the prospecting process. And this is because it's my first time freelancing ever, so learning how to pre-qualify prospects and consulting with them to getting them to sign the contract is a process that's conflicting with my sales ability right now.

          But now that I cleared that up, onto the rest of your post lol.

          -----------------------------------------------------------------------

          Originally Posted by misterme View Post

          But I see cold calling as the task of turning every rock until you find the interested person first before you sell them anything. Basically it's, "Mr. Jones, here's my value proposition blah blah... is that something you want?"

          Now if he talks about it, you can build on that.

          If he says no, you move on to the next number.

          If he cuts you off to ask price you need to be able to gently brush that aside and get back to the topic. It may have been a knee jerk response. If he follows your lead, great.

          "Mr. Jones, 'be happy to give you that information and just so I know what it is exactly you want to have done may I ask you a few questions first?"

          And what's happened there is

          You've just told him you WILL give him a price, so you're not dodging.
          And it makes sense to have to know if he has something in mind so you can give him the right price.

          And you got his permission to ask him questions which means he's agreed to answer them before getting the price.

          And NOW you have a window to build value by asking questions that make him realize that value.

          But sometimes people cut you off and press the price question again like this guy did, and in those case you need to answer by giving a number or come across as dodging and untrustworthy like you're skirting the issue or trying to make it sound confusing.

          So in those cases, jump to giving the price, which you're going to do anyway eventually like this:

          Give a range.

          "Well it could be anywhere from up to but if you're like most of my clients it'll be somewhere around -It'll-Probably-Cost, is that what you have in mind?" OR if it's way early in the call and you want to get back to asking questions, use variations like,
          "Well it could be anywhere from up but so I know what it is exactly you want to have done may I ask you a few questions first?"
          Nice idea with the permission asking part. I'll remember that! *saves to Evernote*
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  • Profile picture of the author kimberly Aita
    Do you know how many searches there are for his product in his area? I didn't see this anywhere in here, but I got this from Jason Kanigan: probably not exactly but.....

    "First let me ask you if there are 2000 people looking for your product in your area, how many do you think you can sell? They say 200 for an example

    Okay, let's say you only sell 10% of that, how much would that be worth to you? 20X100 so 2000. Multiply that by 12. That's an extra 24,000 in annual income so what do you think the website should cost?

    That's not the exact way it goes but it's similar to that.

    You'd have to get the exact method from Jason but I am sure you get the idea.

    Hope you don't mind my chiming in here and as some others have said:

    Congratulations on just picking up the phone
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    • Profile picture of the author jarod b
      Originally Posted by kimberly Aita View Post

      Do you know how many searches there are for his product in his area? I didn't see this anywhere in here, but I got this from Jason Kanigan: probably not exactly but.....

      "First let me ask you if there are 2000 people looking for your product in your area, how many do you think you can sell? They say 200 for an example

      Okay, let's say you only sell 10% of that, how much would that be worth to you? 20X100 so 2000. Multiply that by 12. That's an extra 24,000 in annual income so what do you think the website should cost?

      That's not the exact way it goes but it's similar to that.

      You'd have to get the exact method from Jason but I am sure you get the idea.

      Hope you don't mind my chiming in here and as some others have said:

      Congratulations on just picking up the phone
      I'm selling web design not SEO lol, and thanks
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      • Profile picture of the author misterme
        Originally Posted by jarod b View Post

        I'm selling web design not SEO lol, and thanks
        I didn't re-read the previous posts so as to pick up again on what specific service you sell.

        But the principles apply all the same.

        Good luck.
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  • Profile picture of the author Chris Cho
    It seems like $2500-$5000 is what he had in mind.

    I would've called $3000 flat and set an appointment and if it was something more advanced, I would've explained to him later.

    It seemed like he wasn't going to pay right at that moment so you should've gave him a number and start building trust and relationship with him.

    Just my two cents.
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    • Profile picture of the author jarod b
      Originally Posted by Chris Cho View Post

      It seems like $2500-$5000 is what he had in mind.

      I would've called $3000 flat and set an appointment and if it was something more advanced, I would've explained to him later.

      It seemed like he wasn't going to pay right at that moment so you should've gave him a number and start building trust and relationship with him.

      Just my two cents.
      I'm still learning how to build trust and relationships with people. But so far it's to instill a process and to demonstrate my expertise with their concerns in a genuine manner.
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  • Profile picture of the author Aaron Doud
    Jarod,

    Check out my other thread to see a bit of my rant from being in a similar position as he was. http://www.warriorforum.com/offline-...s-selling.html

    Hoping maybe it will help you step into your prospect's shoes more often. I bet he felt you were being a bit hostile and that is why he got hostile. Remember we can't control others but we can control ourselves and how we handle situations can keep others calm.
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  • Profile picture of the author cshilling22
    You cannot focus on providing solutions if you are not listening. In my opinion you were not listening to what this prospect was saying, leading to him becoming frustrated. Maybe he is not the right customer for you, or maybe you are not the right service provider for him, that is for each of you to decide. But it looks like you are a web designer and he is a business owner who wanted a website and wanted to spend between $2,500 and $5,000 for it. You cannot make a killing as a web designer and focus on solutions if you do not have any clients. Maybe his solution was getting a functional website with a strong call to action and then having additional services focused on driving people to that website or other types of marketing. Now you will never know. But you learned a $2,500+ lesson so that is worth something too. Keep taking action and good things will happen.
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  • Profile picture of the author cpoalmighty
    I definitely would not have asked him why he wanted a website. From the time he said he wanted a website to make money that should have been your cue to hook him with a final sales pitch to bring it all home. At that point he seemed to be willing to give you the money but when it became a debate on price, he was quickly turned off. You should have informed him you would drop by (if in close range) or email him a quote to list out all the features he would receive for the quote you gave him. If he said around $2500, then design a quote around that. Once you list out the features he would receive for that $2500, then you would be designing a website than posting this thread
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