What to Do When Prospective Clients Think You're "Too Expensive"

Originally posted on melissadanielle.com

People will make time and money for what they value, so I find it amusing when I and my independently employed colleagues get hit with the “You charge too much! I can’t afford this! WHAT am I getting for that amount anyway?” while they’re emailing you from their $500 iPhones and iPads (and we know this, because the email signature says, sent from my iPhone/iPad).

I’m not sure where it comes from, but this expectation that people who work for themselves, especially people who are making a living doing what they love should take vows of poverty is tired, self-serving, and outright disrespectful.

I’m all for people doing what makes the most sense economically and ecologically for themselves, but it doesn't mean that I should discount my services to accommodate their money beliefs. And I have turned down more than a few requests to work with me when a client isn't confident that it wouldn't be a financial strain on them.

I choose not to work with people who have those kinds of money issues. It may mean having less clients, but in the end, it’s about maintaining a certain quality of life for both myself and the client.

Some people shop for price, others shop for value, and either is fine.

As an entrepreneur, you have to decide which of those people you want to work with.

Which of those clients do you think will be a pleasure to work with?

What do you do when it feels like you’re being attacked for wanting to make a living (wage)?

First, take a deep breath and tell yourself, it’s not personal.

It’s not your personal problem, anyway.

Money is personal and it is sensitive. When someone is coming at you and accusing you of being overpriced, remember that they are just projecting their own financial insecurities onto you.

Whatever you do, do not lower your fees.

In fact, I would bet your hourly rate that you’re undercharging to begin with.

If they are not self-employed and do not have a side hustle, chances are, the people who are telling you this have NO UNDERSTANDING of the “cost of doing business”. They show up for work and expect to collect a check, regardless of how productive they are and regardless of how successful the company is. They have NO IDEA of what their employer is doing to make sure they can pay all of their employees on time each pay period, including costs that extend beyond the paycheck.

But you know that in addition to the salary you want, you are responsible for overhead costs such as domains/web hosting, email marketing, business/health/liability insurance, taxes, payment processing fees, design, printing, equipment, savings/retirement funds, transportation costs, phone and internet, and on and on.

Your products and services cost the same to deliver at free, discounted, expensive, or overpriced. When you think of how many hours you put into developing a product, when you think about what you give to a client when they sign up for your services - how much is that worth?

Don’t you deserve to recoup all of that?

And what about all the time it takes to get people to find you to buy your products and services? What about all the time and energy you put into creating the product and the structure for how you deliver your service?

Your pricing isn’t just about the end product/delivery of the service, it includes all the time that goes into developing your product and service AND your own personal and professional income goals.

It is also about value.

People invest in what they value, not the tangible product or service.

Why would anyone shop at Whole Foods Market when they can shop at any other grocery store for the same groceries? Organic kale at Whole Foods is no different from the organic kale at Key Food. Why would anyone buy a Lexus when they can buy a Camry? Don't cars all do the same thing?

Which also means, if you're not closing the deal, you haven't demonstrated the full value of why that client should work with you.

When you understand that a decision is based on the perceived value, you'll understand why your clients throw that "I can't" line at you.

But sometimes, we need a little Ego stroke. So, the next time someone tells you that they can’t afford you or you are too expensive, share these links with them:

Tell them, I don’t work for free https://bit.ly/1bsFPSz

When they say, I can’t afford that! https://bit.ly/1bsFb7G

When they tell you, You’re too expensive! https://bit.ly/1bsFI9M

Illustration by Adrian Franks