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Rates vs prices (a dissection)
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That's one of the things that state you care about your customer, because price is all about them (and their certainty). The difference between a rate and a price. Rate: a variable that needs to be calculated with other(s) to have a final figure. Price: a variable that is final. Dissecting yesterday's reply. "We don't work with predefined rate cards, as all you could get is an estimate based on assumed calculations of the rate, times X, Y, or Z. And you know estimates are just that, they could go up or down (they almost always go up)." → You're making sure they understand that a rate is based on an estimate. And because nobody knows what the future holds, they keep most of the risk. The more time it takes, the more they will pay. Independently of how urgent it is for them to get the results. "We do work, however, with fixed prices, as our pricing is tailored to the specifics of each engagement. This will give you total certainty of your level of investment, while protecting and improving your financials and forecasts." → You're reassuring that their investment will be certain and the risk is not held completely by them, but it's shared. Independently of what more it could involve, the price they get is what they pay. Not a cent more. "If this feels like it would be a good fit for you, feel free to reply and we could set a call to better understand what you're after and how we could be of help." → Taking the pressure (and sounding desperate) off of the communication. Giving them space for them to evaluate if it makes sense to them. And that it's ok not to move forward together. These are the first signs that your ideal customers will find and position you like the expert you are. |
Rod Aparicio
Get one tip, question, or belief-challenge that just might change the way you market, to help your customers buy. A *daily* email for b2b founders on improving your business —without the bullshit.
When you're asked about rates and that with that (and your rates "being competitive") you'll move to the top of the line when procuring your expertise, you can reply something like this: "Thanks for asking about rates. We don't work with predefined rate cards, as all you could get is an estimate based on assumed calculations of the rate, times X, Y, or Z. And you know estimates are just that, they could go up or down (they almost always go up). We do work, however, with fixed prices, as our...
Those are actually the little things that go unnoticed —until they don't. Not taking responsibility for what's going on. Misleading with promises that will not happen. Over promising. Under promising and over delivering. Ghosting your clients. Ignoring them when they know you're there. Working (constantly) for free. Focusing on revenue and sales. Inaction. The list can go on and on and on. You get the gist of it. The fix? Caring for your customers.
If your prospects think that what you offer is too good to be true in comparison the competition, raise your price 3X.... or 5X. Only then they will seriously consider buying from you. Too good to be true: too risky (there's a catch). Too good to be true + high price: makes sense, it's a lower risk. Same offering, different contexts.