WHY QUOTING PRICE RANGES IS BAD FOR EVERYONE

Annette Ferguson

Annette Ferguson

Why Quoting Price Ranges Is Bad for Everyone

Don’t quote price ranges

When you tell a prospect that your offering falls somewhere between X (the lowest price) and Y (the highest price), you both lose.
 
The prospect will hear what’s in their best interest: X.
 
The vendor (you) will hear what’s in your best interest: Y.
 
No matter what price you settle on, the customer will pay more than they expected and you will make less.
 
Both loose.
 
When quoting prices, give one number.
 
You may need to negotiate down from there, but the customer can only feel like they are winning.
 
And if you go in prepared to trim down from the original quote, you will win too.
 
But similarly, you need to be prepared to walk away if you are not wanting to go lower.
 
I had a situation recently where I was on a call with a prospect.
 
We chatted, she told me what she was looking for, I explained what I offered (which, incidentally is something that NO other UK accountants offer in terms of value added services)…and I told her the price.
 
She said “I’ve had a lower quote from another accountant”
 
I said – ok then…and ended the call.
 
You see, I know that my price, is my price.  I know that the VALUE I deliver is ten times the price people pay and I am SUPER comfortable with that.  And most of the time, when people go with the lower priced accountant…then end up coming back to me a little while later!
 
I don’t haggle on prices…I don’t say we are between X and Y…I tell my prospect the price…and that’s it…the price, is the price.

Thanks ever so much for taking the time to read my post I truly hope you’ve found it useful and insightful. If you have any questions feel free to contact us!

I am Annette Ferguson, CEO of Annette & Co. Chartered Accountant, Profit First Professional and creator of the Business Wealth Engine. We’re also SUPER social so don’t forget to follow. Here’s to your success!

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