Posts Tagged ‘‘upsell’ the client’

The Conundrum of Package Pricing

Yesterday, a prospect emailed me and asked, “Can you send me your pricing package?”

I’ve been asked this question before. The prospect might ask for a ‘rate sheet’, or ‘ballpark fees’, or use any number of expressions which all translate to, “How much is this gonna cost me?”

I know it goes against the grain a bit, but my prices are in my head. I’ve always meant to create a rate sheet, but it’s never gotten done. After more than four years and hundreds of projects, I can usually determine the basics in the first few minutes of a conversation with the prospect; the rest is mostly window dressing and relationship building. I suppose I ‘customize’ the fees for each project. As those of you with experience already know, this takes practice.

Whenever I’ve attempted to provide set prices or bundled fees, it hasn’t worked out very well. So I stopped doing it. There are simply too many variables with each project.

So, how to answer this question gracefully and keep the client on the hook?

First, don’t panic! The client may pressure you to spout rates on the spot. Say something like, “Let’s talk more about your needs, so I can quote my best fees.” Divert the prospect, get more information and offer a written quote to be delivered the next day, or within a time period that works for you. (And then don’t forget to do it!)

This not only gives you time and silence to think clearly about project parameters, but it is a professional approach. The client who insists on knowing the cost upfront…without any discussion of needs…who ‘doesn’t have time’ to answer your questions… is not the client for you. Walk away.

This is not to say you shouldn’t develop a price schedule if you’re comfortable with it. Perhaps also consider bundling together services to ‘upsell’ the client. For example, customers requesting website copy often want articles too. The customer requesting a sales letter may also need a series of autoresponders. And so forth.

Create package pricing by bundling together services that logically go together. Consider discounting the package price slightly to encourage sales.

Whatever you decide to do, always do what works for you…based on your current skills, your market, and your future plans for growth. Certainly you don’t want to offer packages that include services you’re not familiar with, or quote rates that make you uncomfortable for any reason. You want a happy customer, but not at your own expense!

Do you use a fee schedule, or are you more like me, keeping rates in your head and customizing the cost for each project?

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