© 2005 Karyn Greenstreet
http://www.PassionForBusiness.com
Seven Common Reasons We Can't Talk About Fees
And How To Overcome Them.
Last week, a wonderfully-skilled electrician installed a new
light fixture for us. He was competent, courteous and
efficient. He answered all our questions simply, with skill
and eloquence. I was amazed, as you might imagine, when I
asked him, "How much do we owe you?" and his embarrassed
reply was, "Gee, is $50 okay?"
With the quality of work he'd done and the amount of time he
put into it, I would have expected to pay double that amount.
His resistance to naming his price reminded me of my small
business clients who have the same problem.
All entrepreneurs feel fear at some point, including
attorneys, consultants, coaches, and writers. It's a natural
part of starting or growing your business. It can be
uncomfortable to take risks, to name your price and tell a
prospective customer that you want to work with them.
Roberto Goizueta, the late chairman of Coca-Cola, said, "If
you take risks, you may still fail; but if you do not take
risks, you will surely fail. The greatest risk of all is to
do nothing." Put this mantra into your head: Risk equals
reward.
So, what's the problem?
I've discovered seven common reasons why we're afraid to
discuss our fees:
1. Do you feel your fees are too high?
2. Do you think you're not qualified or experienced enough to
charge that rate?
3. Are you afraid of rejection? (Or, possibly, afraid of acceptance,
which will mean you'll have to perform?)
4. Are you afraid the prospect will raise an objection to the
fee, and you won't know how to reply?
5. Are you shy and uncomfortable talking with strangers?
6. Are you afraid to take risks?
7. Are you generally uncomfortable talking about money?
Where does this come from? Is it part of your personality or
is this a behavior you learned from your past experience or
culture? In many families and cultures, it's taboo to talk
about money or to ask to be paid. While it might be
personally beneficial to look inside yourself for the reasons
why you act this way, it's also important to get unstuck by
using techniques which help you move forward, such as:
* Have a good pricing strategy. Research the
average fees for your type of business so that you know your prices
are in line with expectation. If you can't get competitor pricing
information, try Brenner Books (http://www.brennerbooks.com).
If your experience warrants it, increase your pricing to reflect
your higher skills, knowledge and experience. If you're not sure
how to create a pricing strategy, research it online or talk with
a small business consultant or mentor.
* Establish that the prospective customer needs your
services before discussing price. You'll feel more
comfortable discussing your fees if you know the
prospective customer really want to hire you. Ask a
lot of questions to see if their problem and your
solution are a good match.
* Put your fees on your website and brochure. In this
way, prospects will know your fees before the sales
conversation begins.
* Be honest. Tell the prospect what the options are for
your services or products, any quantity discounts you
offer, and how payment is delivered. Practice saying
this over and over again until the words and phrases
slip comfortably from your mouth.
* Act confidently when delivering your fees. Don't
downplay your fees. State your fees, then shut up.
Don't make excuses for your fees, or ramble on about
them. Look directly at the prospect while delivering
your fees.
* Don't automatically offer discounts. This tells the
prospect that your fees are soft and that they're
negotiable. Instead, state your fees and options and
ask them to tell you which package is right for them.
* Act "as if." How would an experienced person in your
industry act, when discussing her fees? Act as if you
are that person and you'll find your confidence
increasing with each conversation. Practice, practice,
practice.
* Get training. If you're uncomfortable with the whole
sales process, get sales training. By attending a
class, you'll learn different ways of saying the same
thing, and you're bound to find a way that's right for
you.
* Refer out. If the prospect really can't afford your
fees and you can't afford to offer a discount, refer
that prospect to someplace where they can find an
alternative. Say, "If you can't afford my fees, you
can try these online referral services where you might
find someone in your price range."
Talking about your prices can be uncomfortable. But with
practice and persistence, and a willingness to overcome your
fears, you can begin to have comfortable conversations with
your prospective customers.
