Quoted 10X more than the competition, and closed the sale!

15 replies
This isn't necessarily a bragging thread to stroke my ego. I don't need to do that, it is already big enough on any day except mondays!

This is a short and sweet thread to many of you warriors on here. A lot of you don't think there are people out there that will pay certain prices. A lot of you think that you need to match your competition in price! That isn't the case!

I just got off the phone, accepting check by phone with someone in need of a website. They checked craigslist, and everyone they talked to was offering a $200-300 project fee with a 7 day turn around time.

I closed the deal for $3,100 offering a 30 day turn around time. He asked me, so what is the difference between your price and theirs? I simply said, I value my time because I am a professional, this is what I do, and when people want results they come to me. The people you're calling are desperate for business. He laughed and asked how he can pay me to get started.

Keep in mind... he called people local to him, offering that price, while I am 1,000 miles away from him and offering 10X the amount they quoted him for.

There are people out there that can pay you what you're worth! There are other people out there that just want the best deal and don't care about quality, or results. The people that want to low ball it, are not quality clients.

I used to SEO one of my websites for cheap web design and had it ranked. I thought, the more the merrier! This definitely is not the case. Since then, on one of my sites offering web design, I optimized for quality web design, and am getting the same amount of work, if not more... for higher prices!

Anyway, the point is... you just need to go out there and find these people. There are many, too many for me to find by myself! Stick to your prices, don't drop them because you think they can't afford it, you will be surprised!

A great technique for those of you offering web design. Create 3 different web design packages. I have done this, and they are very affordable package ranges. I have never sold a web design package, I use that to feel them out on price range and then create a custom quote for them. This technique is much better than the "Okay what is your budget" game.

Happy hunting warriors, I hope to hear some of your similar success stories.
#10x #closed #competition #quoted #sale
  • Profile picture of the author Jay Rhome
    Congrats!

    And you are right. I lowballed at first, but certainly not anymore. In fact I cringe when I see the low prices some posters here suggest. I'm not talking when offering services here to other warriors or being a subcontractor. I'm talking when you're out there prospecting and busting your balls getting clients.


    Say you make 10 sales at $300 = $3000

    And now, you raise your price and thus lose some sales (and BTW many times you WON'T lose any...)

    At 7 sales at $900 = $6300, more than TWICE the money, for 70% of the previous workload, and dealing many times with less troublesome clients. Isn't that better? Even with half the previous sales you'd make a lot more money! You really think you'd lose half you sales if you raise your prices? Why settle for less?


    Of course, there is a limit to what we can sell it for.

    At 3 sales at $2000= $6000, it would be still twice the amount of profits. But you got a lot more "NOs" that can demoralize you, and you get less clients to upsell further work now and in the future. But it would still be twice the money for 30% of the workload... And if you provide the value you can sell one site at $3000 and make the same as the previous 10 sales, with a lot more time to get more clients or enjoy life.

    Don't sell yourselves short!
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  • Profile picture of the author RobKonrad
    Hello there,

    congratulations on your great deal. Once again the old truth is confirmed - price is all about perception of value.

    Just make sure you deliver


    Cheers,
    Rob Konrad
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  • Profile picture of the author guyd
    Congratulations! not only have you stood your ground but you also saved your client from potential failure.

    I find to help justify the price difference is:
    " that it's not about the cost of providing the mechanic, it's the cost of offering your experience that sells

    The way some clients look at pricing is often that they think the better you are the cheaper you should charge as you should be able to do it quicker then others.

    Naturally that sucks and is totaly incorrect!

    This is why I find it is essential not to charge by the hour as a client can use this with a stick to beat you with.

    It's all about the benefits to them and your experience to help make that happen - not simply installing a wordpress and customising the template etc!
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  • Profile picture of the author hardyfella
    great stuff, did you get this client from a website enquiry?
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  • Profile picture of the author newbizideas312
    Nice.... It's one important thing to understand. If you mark up your prices, you can work with higher qualified prospects with more money.
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    • Profile picture of the author iAmNameLess
      Originally Posted by RobKonrad View Post

      Hello there,

      congratulations on your great deal. Once again the old truth is confirmed - price is all about perception of value.

      Just make sure you deliver


      Cheers,
      Rob Konrad
      Definitely, delivering is the most important part. Quality clients often lead to more quality clients.

      Originally Posted by guyd View Post

      Congratulations! not only have you stood your ground but you also saved your client from potential failure.

      I find to help justify the price difference is:
      " that it's not about the cost of providing the mechanic, it's the cost of offering your experience that sells

      The way some clients look at pricing is often that they think the better you are the cheaper you should charge as you should be able to do it quicker then others.

      Naturally that sucks and is totaly incorrect!

      This is why I find it is essential not to charge by the hour as a client can use this with a stick to beat you with.

      It's all about the benefits to them and your experience to help make that happen - not simply installing a wordpress and customising the template etc!
      I agree completely. Especially about not charging by the hour, I have always, and will always charge a flat project fee.

      Originally Posted by hardyfella View Post

      great stuff, did you get this client from a website enquiry?
      Actually, it was someone through craigslist.

      Originally Posted by newbizideas312 View Post

      Nice.... It's one important thing to understand. If you mark up your prices, you can work with higher qualified prospects with more money.
      Very true. I think the problem is that offline consultants have trouble getting to that point. Myself included. I used to advertise as cheap or affordable but moving from those words to quality and other related words have really improved the quality of clients!
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  • Profile picture of the author davidlieder
    Its true, people have the mentality "you get what you pay for". I can tell so many stories about this, but yours is good enough, it makes the point.
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    • Profile picture of the author JBroyer44
      Congrats on the sale!

      You said your client was looking on craigslist.....is that where he found you? Or did he find you through a web search?

      To me it sounds like the client found you and not the other way around and just curious as to how you reeled him in?

      I still have another month until my company shuts down for the winter so looking for ways to advertise my services to get some work set up before I start cold calling/emailing prospects.
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  • Profile picture of the author Seantrepreneur
    This is a great post for the reason you stated in your thread. "A lot of you don't think there are people out there that will pay certain prices." There are a few too many Warriors on here trying to discourage others to not charge that much. Or saying that no business is going to pay that much for a certain type of service. The fact of that matter is businesses are and will pay for these services happily.

    Of course we are not in the business of ripping ppl off, but I'm also I'm the business of making money for my time and energy. Ya sure I can get a facebook fanpage built for $40 when I outsource it so should I sell it to a client for $50? You can, but I'm going to charge them at least $200 because the value that I can explain to them clear as day that it adds to there facebook marketing efforts.

    You are not going to build a successful business by continuously low balling customers just to get business.

    Sean
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  • Profile picture of the author Aaron Doud
    It's all about the value and what you are offering.

    A $300 website and a $3,000 website should be two different beasts. Our company would never go with the $300 website as it would never meet our needs. So I know there are lots of companies out there that need more than a basic $300 website. That said people should not be pitching price first either way. You should talk to the customer and even bring back a proposal in a few days. Maybe even have more than one option if you are not sure where their budget it. Say their budget is $2,000. Maybe have a $1,500 and $3,000 proposal as options besides the $2,000. That budget may go up($1,500 should be purposely too little for too much money and the $3,000 should show the best value and have great additions to the $2,000)

    But the one thing I always caution here is that some n00bs seem to think you can charge more without offering more and doing more.

    If you provide a $300 website to a guy who paid $3,000 he will not be happy. I'm one of those people discouraging people from charging too much. There is nothing wrong with selling $5,000 websites but most of people who are taking our advice here have no idea how to create a $5,000 website. You can't take a WP theme and spend an hour modifying it and expect someone to pay you thousands. That is a classic example of a $300 website.

    You have to provide value and value is not hype. Yes your website may bring me $30,000 more in profit this year but if all you provide me with is a $300 website where it took you and hour i am a fool to pay you $3,000 for it no matter how much business it will bring me. And business owners and managers normally have good BS meters so they see through the guys doing it.

    It's why I talk so much about people using tried and true methods of pricing their services. You should have an idea what your time is worth. You should have an idea what it will cost to outsource. And you should have an idea how long the project will take you once you talk to you prospect.

    Just because the company can afford a $5,000 website doesn't mean you make a $300 one and charge them $5,000. No you need to create a $5,000 website and explain why it will be better than the basic one they may even have hinted they wanted.

    A lot of people here tell people to do the same work but charge one company more and another less. That does not help you in the long term. If you build a $300 website for Joe Plumber and he recommends you to his brother who is VP at Deere you should not be selling Deere a $300 website for $10,000. But year you should be selling them on a $10,000 website, monthly maintenance, and hosting. And yes hosting for deere will be more because you will want a dedicated server.

    The key is you are doing more and offering more not just charging more.

    I see a lot of big numbers tossed out and some are just silly like that girl who was trying to sell a $2,500 fanpage(we never got details from the guy who heard her pitch to know if it had more value than a $300 one). But I think this forum breeds people who pitch prices that are too high for what they are offering. They basically shoot themselves in the foot and wonder why their closing ratio is so low or why they have been doing this for months and have no clients.

    Trust me that guy who needs the $300 website knows other people and some of them need $5,000 websites. Some need $10,000 a month SEO. And once you have been doing this long enough maybe those are the only people you should be targeting but for the n00bs who don't understand what more should be going into a $5,000 website they are simply shooting themselves in the foot and making it harder for everyone else out there.

    If I have heard 10 lame pitches this week for over priced SEO services do you think I am going to listen to yours? Even though you might be offering what i need at the right price? Do you see how people like this harm everyone doing offline marketing?

    They make people like me. The people you are pitching too so unwilling to even listen to you unless you think outside the box. To pitch me on SEO service these days you would have to get me into a seminar or be local and show up. I ignore all emails and politely hang up on all phone calls.

    Considering the emails and phone calls I get I know I am a prospective client for all of you.

    Never low ball. If a service is worth $5,000 charge $5,000. But don't over price things just because a company can pay. Give them value and you will get referrals.

    Honestly if you are at the point where you are selling $5,000 plus websites a great deal of your business should be from referrals. And while someone can choose to start by going after hgh end customers myself i would never tell a n00b to start there unless they had confidence in themselves to delivery on it.

    Mess up a $300 website and you refund and lose some face. Mess up a $5,000 website and you could sink your business and even be sued. Especially if you false represent it with hype.
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    • Profile picture of the author iAmNameLess
      Originally Posted by lordauric View Post

      It's all about the value and what you are offering.

      A $300 website and a $3,000 website should be two different beasts. Our company would never go with the $300 website as it would never meet our needs. So I know there are lots of companies out there that need more than a basic $300 website. That said people should not be pitching price first either way. You should talk to the customer and even bring back a proposal in a few days. Maybe even have more than one option if you are not sure where their budget it. Say their budget is $2,000. Maybe have a $1,500 and $3,000 proposal as options besides the $2,000. That budget may go up($1,500 should be purposely too little for too much money and the $3,000 should show the best value and have great additions to the $2,000)

      But the one thing I always caution here is that some n00bs seem to think you can charge more without offering more and doing more.

      If you provide a $300 website to a guy who paid $3,000 he will not be happy. I'm one of those people discouraging people from charging too much. There is nothing wrong with selling $5,000 websites but most of people who are taking our advice here have no idea how to create a $5,000 website. You can't take a WP theme and spend an hour modifying it and expect someone to pay you thousands. That is a classic example of a $300 website.

      You have to provide value and value is not hype. Yes your website may bring me $30,000 more in profit this year but if all you provide me with is a $300 website where it took you and hour i am a fool to pay you $3,000 for it no matter how much business it will bring me. And business owners and managers normally have good BS meters so they see through the guys doing it.

      It's why I talk so much about people using tried and true methods of pricing their services. You should have an idea what your time is worth. You should have an idea what it will cost to outsource. And you should have an idea how long the project will take you once you talk to you prospect.

      Just because the company can afford a $5,000 website doesn't mean you make a $300 one and charge them $5,000. No you need to create a $5,000 website and explain why it will be better than the basic one they may even have hinted they wanted.

      A lot of people here tell people to do the same work but charge one company more and another less. That does not help you in the long term. If you build a $300 website for Joe Plumber and he recommends you to his brother who is VP at Deere you should not be selling Deere a $300 website for $10,000. But year you should be selling them on a $10,000 website, monthly maintenance, and hosting. And yes hosting for deere will be more because you will want a dedicated server.

      The key is you are doing more and offering more not just charging more.

      I see a lot of big numbers tossed out and some are just silly like that girl who was trying to sell a $2,500 fanpage(we never got details from the guy who heard her pitch to know if it had more value than a $300 one). But I think this forum breeds people who pitch prices that are too high for what they are offering. They basically shoot themselves in the foot and wonder why their closing ratio is so low or why they have been doing this for months and have no clients.

      Trust me that guy who needs the $300 website knows other people and some of them need $5,000 websites. Some need $10,000 a month SEO. And once you have been doing this long enough maybe those are the only people you should be targeting but for the n00bs who don't understand what more should be going into a $5,000 website they are simply shooting themselves in the foot and making it harder for everyone else out there.

      If I have heard 10 lame pitches this week for over priced SEO services do you think I am going to listen to yours? Even though you might be offering what i need at the right price? Do you see how people like this harm everyone doing offline marketing?

      They make people like me. The people you are pitching too so unwilling to even listen to you unless you think outside the box. To pitch me on SEO service these days you would have to get me into a seminar or be local and show up. I ignore all emails and politely hang up on all phone calls.

      Considering the emails and phone calls I get I know I am a prospective client for all of you.

      Never low ball. If a service is worth $5,000 charge $5,000. But don't over price things just because a company can pay. Give them value and you will get referrals.

      Honestly if you are at the point where you are selling $5,000 plus websites a great deal of your business should be from referrals. And while someone can choose to start by going after hgh end customers myself i would never tell a n00b to start there unless they had confidence in themselves to delivery on it.

      Mess up a $300 website and you refund and lose some face. Mess up a $5,000 website and you could sink your business and even be sued. Especially if you false represent it with hype.
      I am not sure if you're directing this to me or what. However, if you want to be the guy getting people who pay you after visiting a coinstar, by all means, go ahead!

      I wouldn't recommend any beginner to think it is acceptable to offer low prices. The reason is, they will end up resenting their client and move on to bigger projects. Happens all the time. I get about 3 or 4 calls a day from people who it has happened to.

      You may have heard 10 lame pitches, but you haven't heard mine. The difference is results.

      People aren't going months and months without clients because their prices are too high, I can guarantee you that. I can spend 2 weeks trying to sell $5,000 websites and I guarantee I can sell more than most on this forum(aside from the telemarketing gods like John Durham). The reason that is, is because I know what I'm worth, and I'm pretty sure I can obtain better results than any of my competition. I also work hard and I don't sit around waiting for things to happen, I make things happen.

      I don't care if you're offering a $200 website or a $7,000 website.. you put enough work into it and make the effort you will get clients.

      I agree with you in completion, that offering more means you can charge more. For me, if I sold a wordpress site ( i hate wordpress sites) I could probably have it customized and good enough within an hour. That hour is worth an easy $500-800. Not like I would be making that amount per hour, because there is all the BS communication to go with it too.

      I think what most people do wrong, is not having enough confidence. If confidence is a problem, and you're shakey on price, then they will be uncertain on price. If you are not confident in the work when you show them, they will not be confident. If you come across as confident and doing them a favor with your pricing because you know you are a valuable asset, they will be grateful for you. If you come across as confident when delivering work, you're implanting confidence in them, with their website. I truly believe confidence is half the battle. If you have confidence and the right attitude I think you can shake the world.
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      • Profile picture of the author sam m
        My motto has always been if you think its worth 1,000
        then charge 2,000

        When I do that I know I am going to have success because when I do that I am not dissapointed because like i stated what it worth

        So if I do not get the 2,000 I still got 1,000
        worth and value

        I like this part-

        I closed the deal for $3,100 offering a 30 day turn around time. He asked me, so what is the difference between your price and theirs? I simply said, I value my time because I am a professional, this is what I do, and when people want results they come to me. The people you're calling are desperate for business. He laughed and asked how he can pay me to get started.
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  • Profile picture of the author danielkanuck
    Inspirational. People really do have the money to pay you what you're with. I guess it's all about sticking to your guns and having a long list of prospects that you can sell to.
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    • Profile picture of the author Aaron Doud
      Originally Posted by danielkanuck View Post

      Inspirational. People really do have the money to pay you what you're with. I guess it's all about sticking to your guns and having a long list of prospects that you can sell to.
      Always ask for what you feel the project is worth. If you are selling value and your prices are fair you will land a nice percentage.
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  • Profile picture of the author link82
    IAmNameless -- that's awesome! After gaining my first client and then reading how people charge $300 & less for SEO, I've been wondering why people do valuable work for so low.

    Glad to k now there are people out there who will pay you well for what you can do for them. Sweet stuff.
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    Quietly Selling Powerful Links. Just a handful on clean domains, PM me for inquiry :D
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