Art of the Discount
What…A DISCOUNT? Are you kidding ME? How can I stay in business if I’m giving a discount? I can hear you now grumbling, sighing, telling yourself that well maybe if I did that, I’d make some more money, I would have more clients…and so on.
How to Never Lower Your Rates Again
It’s happened to every service provider and coach at one time or another—probably more than once.
You offer a proposal or contract, only to have your potential client respond with, “That sounds great, but I can’t afford it.” Wawawa…
So what do you do?
For a lot of coaches and service providers, their first response is to lower their rate. After all, they reason, she really does need my help. Plus its good karma, and she’ll talk about me with her friends, and refer business to me later. Unhuh…
Maybe, but more likely than not. What you do end up with is a client who takes far too much of your time. For less money than you deserve. You wind up resentful, and wondering why you aren’t earning the living you know you’re capable of.
I want you to make a promise to yourself right now that you will never again lower your rates to appeal to a client. Doing so devalues your services, makes the client less likely to follow through, and worse, makes you feel terrible later. You are listening to me, right?
Now, I’m not saying you can never offer special deals
But I do want you to change how those offers are made. Here’s how it works.
If your coaching package includes:
- 1 45-minute call per month
- 1 email per day
- 1 in-person meeting per quarter
- and 1 mastermind retreat per year
And your potential client claims to not be able to afford your asking price of $1,000 per month, rather than offering to reduce the price, you offer to reduce the price and the package. Right?
So the offer you make to her now includes everything BUT the mastermind retreat. Or everything BUT the in-person meeting every quarter. Doesn’t that make sense?
You have not lowered your rates so far that you feel used, but at the same time, you’ve worked with her to create a plan she can afford. It’s a true win-win for both of you.
The same technique can be used for any type of coach or service provider unless you’re charging strictly by the hour. If that’s the case, take a look at how you can reduce the number of hours you need to invest while still providing value. Yes, sounds simple no?
For example, rather than offering four one-hour calls, change your plan to just two calls, with email follow-ups. She’ll still get plenty of value, and you’ll free up some time by inviting email questions rather than blocks of time on the phone. This is so simple…right?
So, the next time you’re asked to reduce your rates for anything, take a close look at how you can also reduce the work you’ll be doing. That way you’ll never feel as if you’ve been taken advantage of, and your clients will still get great service.
Speaking of providing service…I can do that for you. Contact me here. I would love to help you provide quality service to your clients. It’s so easy, just fill out the form and once I receive it, we can set up a 15-minute call at no cost to you. You know, if you’re over-worked I can find some solutions that will help you find the time to enjoy your life as well as get you out of overwhelming tasks that keep you burning the candle at both ends.
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Please leave a comment below and let me know if these suggestions are helpful to you and your business.