Have you heard “that’s too expensive” from a customer? Here, I will tell you my secret about overcoming price objections and charge more!
One of the quickest ways to generate 10 times more revenue than you do now, is to raise your price by 10 times. One of the biggest pushbacks that a lot of freelancers have, especially those selling websites at $2000 is “How do I get from that mark to a $20.000 website?”
Overcoming price objections in 4 steps:
1. Target better businesses
Ask yourself the question “Do the people that I’m reaching out actually have the money to pay me?”, If not, you’re talking to the wrong type of clients and I recommend reaching out to larger businesses.
For instance, let’s say you’re reaching out to restaurants, specifically people who owned one restaurant, right?
Well, rather than people who owned a single restaurant, why not reach out to restaurant groups that own dozens of them?
If you’re selling to small businesses, with revenue fewer than 2 million dollars, why don’t you reach out to businesses with 4 to 10 million dollars?
Once you’ve got that target down, the next thing you want to do is:
2. Overcoming price objections: Give a guarantee
Basically, you want to come up with some kind of offer that isn’t going to make them think twice in order to sign.
I don’t recommend doing a money-back guarantee because it’s going to be really easy to put yourself in a lot of debt if you fail.
The guarantee we use at X27 is for all our cold outreach, we promise 10 meeting a month, and if after 3 months we don’t hit that mark, we’ll continue to work for free until we do; it’s solid and it works a lot of the time.
What kind of guarantee can you implement into your business that would have the same effect? If you’re in mobile development, it could be two months of free bug fixing in the work you’ve done for them.
It certainly has to be something that is completely under your control and that you’re not going to stress too much about it, while at the same time helping those customers justify the risk. Remember that the main reason a company wouldn’t pay you 10 times more, is because they see a big risk.
They would want to know with a 100% certainty that you’re going to deliver, and the guarantee is one of the easiest ways to do that.
Another easy way on how to overcome buyer objection is:
3. Talk about ultra-relevant case studies
I recommend niching down to one specific industry when you’re trying to grow. Once you do that, you can look at your past clients to find the best ones and use those as an example.
For X27 we found that our best results were coming from all the marketing work we’re doing for mobile app development firms, which is why we take them as a solid niche.
We have passion for it and we even have a FREE sales course for mobile and web developers, which you can check out by clicking here.
If you start niching down, you’ll be able to talk about ultra-relevant case studies.
If you’re approaching a restaurant, and you’ve worked with two dozen other restaurants, you’re already ahead of the curve by having facts about what works and what can be implemented to grow the business.
Once you’re able to show your results and success, your close and charge rates are going to start going up as well.
If all of that doesn’t work, you can use number 4:
4. Intro them to a client for a large testimonial
I always recommend that if you’re starting a business, work extremely hard on one client to get the best testimonial as possible from them.
If you build the relationship in the right way, they’ll be open to deliver a 15 minutes phone call with the client as a recommendation.
It’s good to have one or two of these ready to be sent to clients because that’s also going to substantially increase your close rate and pricing.
You can use this to finally convince a particularly doubtful client, especially if the recommendation is from a business similar or exactly like theirs (and it should be if you’re niching down).
There you have!
I hope that with these 4 ways to overcome price objection, you can start growing your business the way you want.
Until next time!
Remember to contact us for marketing and sales advice for your own agency!