{"rowid": 90, "title": "Monkey Business", "contents": "\u201cToo expensive.\u201d \u201cOver-priced.\u201d \u201cA bit rich.\u201d\n\nThey all mean the same thing.\n\nWhen you say that something\u2019s too expensive, you\u2019re doing much more than commenting on a price. You\u2019re questioning the explicit or implicit value of a product or a service. You\u2019re asking, \u201cWill I get out of it what you want me to pay for it?\u201d You\u2019re questioning the competency, judgement and possibly even integrity of the individual or company that gave you that price, even though you don\u2019t realise it. You might not be saying it explicitly, but what you\u2019re implying is, \u201cHave you made a mistake?\u201d, \u201cAm I getting the best deal?\u201d, \u201cAre you being honest with me?\u201d, \u201cCould I get this cheaper?\u201d\n\nFinally, you\u2019re being dishonest, because deep down you know all too well that there\u2019s no such thing as too expensive. \n\nWhy? \n\nIt doesn\u2019t matter what you\u2019re questioning the price of. It could be a product, a service or the cost of an hour, day or week of someone\u2019s time. Whatever you\u2019re buying, too expensive is always an excuse. Saying it shifts acceptability of a price back to the person who gave it. What you should say, but are too afraid to admit, is:\n\n\n\t\u201cIt\u2019s more money than I wanted to pay.\u201d\n\t\u201cIt\u2019s more than I estimated it would cost.\u201d\n\t\u201cIt\u2019s more than I can afford.\u201d\n\n\nEveryone who\u2019s given a price for a product or service will have been told at some point that it\u2019s too expensive. It\u2019s never comfortable to hear that. Thoughts come thick and fast: \u201cWhat do I do?\u201d \u201cHow do I react?\u201d \u201cDo I really want the business?\u201d \u201cAm I prepared to negotiate?\u201d \u201cHow much am I willing to compromise?\u201d\n\nIt\u2019s easy to be defensive when someone questions a price, but before you react, stay calm and remember that if someone says what you\u2019re offering is too expensive, they\u2019re saying more about themselves and their situation than they are about your price. Learn to read that situation and how to follow up with the right questions.\n\nImagine you\u2019ve quoted someone for a week of your time. \u201cThat\u2019s too expensive,\u201d they respond. How should you handle that? Think about what they might otherwise be saying.\n\n\n\n\u201cIt\u2019s more money than I want to pay\u201d may mean that they don\u2019t understand the value of your service. How could you respond?\n\nStart by asking what similar projects they\u2019ve worked on and the type of people they worked with. Find out what they paid and what they got for their money, because it\u2019s possible what you offer is different from what they had before. Ask if they saw a return on that previous investment. Maybe their problem isn\u2019t with your headline price, but the value they think they\u2019ll receive. Put the emphasis on value and shift the conversation to what they\u2019ll gain, rather than what they\u2019ll spend.\n\nIt\u2019s also possible they can\u2019t distinguish your service from those of your competitors, so now would be a great time to explain the differences. Do you work faster? Explain how that could help them launch faster, get customers faster, make money faster. Do you include more? Emphasise that, and how unique the experience of working with you will be.\n\n\n\n\u201cIt\u2019s more than I estimated it would cost\u201d could mean that your customer hasn\u2019t done their research properly. You\u2019d never suggest that to them, of course, but you should ask how they\u2019ve arrived at their estimate. Did they base it on work they\u2019ve purchased previously? How long ago was that? Does it come from comparable work or from a different sector?\n\nHelp your customer by explaining how you arrived at your estimate. Break down each element and while you\u2019re doing that, emphasise the parts of your process that you know will appeal to them. If you know that they\u2019ve had difficulty with something in the past, explain how your approach will benefit them. People almost always value a positive experience more than the money they\u2019ll save.\n\n\n\n\u201cIt\u2019s more than I can afford\u201d could mean they can\u2019t afford what you offer at all, but it could also mean they can\u2019t afford it right now or all at once. So ask if they could afford what you\u2019re asking if they spread payment over a longer period? Ask, \u201cWould that mean you\u2019ll give me the business?\u201d\n\nIt\u2019s possible they\u2019re asking for too much for what they can afford to pay. Will they compromise? Can you reach an agreement on something less? Ask, \u201cIf we can agree what\u2019s in and what\u2019s out, will you give me the business?\u201d\n\nWhat can they afford? When you know, you\u2019re in a good position to decide if the deal makes good business sense, for both of you. Ask, \u201cIf I can match that price, will you give me the business?\u201d\n\nThere\u2019s no such thing as \u201ca bit rich\u201d, only ways for you to get to know your customer better. There\u2019s no such thing as \u201cover-priced\u201d,\u00a0only opportunities for you to explain yourself better. You should relish those opportunities. There\u2019s really also no such thing as \u201ctoo expensive\u201d, just ways to set the tone for your relationship and help you develop that relationship to a point where money will be less of a deciding factor.\n\nUnfinished Business\n\nJoin me and my co-host Anna Debenham next year for Unfinished Business, a new discussion show about the business end of working in web, design and creative industries.", "year": "2012", "author": "Andy Clarke", "author_slug": "andyclarke", "published": "2012-12-23T00:00:00+00:00", "url": "https://24ways.org/2012/monkey-business/", "topic": "business"}