How to handle client price expectations
When it comes to renovation or design projects, homeowners can be surprised by the expense; they're not
trying to be cheap and unrealistic, they're just not used to shopping for quality furnishings and materials the
way you are. Now, more than ever, as prices rise, inflation sets in and stagflation rears it's ugly head, clients need to be educated on the realities of the costs of their projects.
Here are some tips for keeping your clients committed to a project.
1. Before meeting with the client, you must
make sure that they are ready and willing to
spend on the project. Determine whether or not they
are interested in the project by asking about their
budget and motivations on the telephone or
use FloQuote to give them a quick estimate.
Don't engage unless you have commitment.
2. Discuss project costs from the beginning. If a client does not supply a budget, share costs from your other projects to give them an idea or again just give them a rough estimate and literally ask them if they have the budget for this amount.
3. Don't start lowering your prices right away. They will just keep pushing you for more and more discount. Also, don't ever feel obliged to share your costings. Potential clients use this tactic to look for cracks in your pricing model and push for further discounts. The price is the price. You have worked out your costs and that is the price you need to make money. Stand firm and be prepared to walk away. This is a sellers market.
4. Educate your customer on how inflation has driven all the prices up and advise them that this may not be the time to commence a project. However, if they wait they may find that it is going to get considerably more expense in the medium term before it gets cheaper. So, they may be waiting for a long time.
5. Educate the potential client about quality. A Ford is a Ford, a Lada is a Lada and a Porsche is a Porsche. You can't get a Porsche for the price of as Lada so if you want a Porsche you need to pay more money. It's really that simple.
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