Don't Justify Your Prices. Do This Instead.
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- Опубліковано 18 жов 2023
- When prospects challenge your pricing, how do you respond? Chris Do shares an empowering new approach to handling this tricky situation with finesse.
Learn a simple yet highly effective method to reframe the conversation in your favor, and discover how to establish trust and authority by guiding prospects through prioritizing their must-haves.
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Host: Chris Do
Producer: Mark Contreras
Cinematographers/Editors: Stewart Schuster @RodrigoTasca & @Tascastudios MOCS Media
I love this quote I found recently: “I’m competing with people at double my rate, not half”.
I ❤ This.
Can you elaborate or explain this one? Thanks!
@@TonyBabarinoSays that your work is top quality, and you’re already discounted value (so there’s no more movement on price, if anything you’ll be increasing once you are established), rather than low quality and inflated value.
FIRE - and very true Great Input
oh I love it
gonna steal it
I must say I followed your tips for the past years. This has lead me to double my fees and have no questions asked about my prices, and when I do, I do not talk about money. It is what it is. I do have less clients, but they pay better, they value what I do, and trust my judgment. And now I have more time for my family. So, thank you.
Amazing.
I’ve heard it said that if you were to raise prices by 10% you could afford to lose 30% of your work and remain at the same revenue. Good job mate
Love this
If you are too low you will attract penny hunters. They do not care about you and your various qualities but only about your overall quality for a very good/low price to them where the price is the 1st point on the list. They don't even understand the difference between "overal quality" and "various qualities". Overall quality is also the 1st point on their list. In fact those people do not have other points. Everything is in that one point.
And if you manage to angry penny hunters (even if it is their fault and it almost always is) then they will trash talk about you anywhere and skip your place because some poor soul is waiting somewhere else to make their acquaintance. If you have a debate, discussion or dispute with people who can afford and value you then every problem is just a minor inconveniece you can handle to everyones happiness which will ultimately strenghten your bond even further. Because you both know you can get to a conclusion and discuss everything in a reasonable fashion and peace. Pennyhunters don't work that way. One mistake and everything is over (or if it is too ridiculous then you will see each other in court again).
Penny hunters are good/usefull when you are fresh and starting out but you need to get rid of them as soon as possible or they will destroy your mental health AND your business.
*"Do not cast your pearls before the swine"*
I had a distributor trying to force us to justify our prices. They harassed us for nearly 5 weeks with calls and e-mails. Finally, the CEO got involved and asked the distributor for their client list and they were insulted. He stated “now do you understand what type of private information you’re asking of us?” We have distributors in a queue for our product. We let this distributor go. They then came back begging 3 months later. Sometimes you need to align with the right people.
My favorite line is...
" this price Represents my experience and workmanship"
If anyone has watched Chris for long enough, you will understand he is not arrogant, he's realistic and honest!
yes.
Thank you ❤️
I used to have this opinion actually but He is honest and down to earth. Love him.
Facts. He's shaped our agency so much.
Yup, I would agree. He's the most transparent thought leader I've come across!!
As a client myself, i always ask "what can you do within this budget" so that the artist is not undervalued !
I really respect and appreciate that! ❤
Bless you
I sometimes get the question “why is your artwork so expensive?” My answer is “if I can’t make a living at this, then none of this artwork that you see here and enjoy so much, would ever exist”
Chris,
I am a plumber, and I have closed several deals thanks to your sales videos. Appreciate you!
Excellent. Kudos.
Which principles have you applied that helped you?
Competing on price is a short-term strategy with catastrophic long-term consequences. Competing on value and differentiation is how to increase profitability.
Not hating or nothing but is differentiation a word?
@@TM-bi1inNot hating or nothing but couldn’t you have spent 2 seconds googling it instead of asking it here?
And yes it is a word.
@@bawbsmith I did after commenting but I couldn't find anything. Maybe I typed it in wrong but then I got off my lunch break... so, who knows
@@TM-bi1in It is.
dif·fer·en·ti·a·tion
/ˌdifəˌren(t)SHēˈāSHən/
noun
the action or process of differentiating.
"packaging can be a source of product differentiation"
Are you serious? 😂@@TM-bi1in
Been in business for over 18 years. I'm crying right now. This is exactly what I needed to hear. Thank you Chris. I've been lowering my prices my entire career because all I want to do is help people. As a result, my business has stayed small. I'm going to listen to this on repeat until it becomes part of who I am. I can't thank you enough for this information and providing us creatives with the business acumen some of us never had. I'm very grateful.
Check out our other videos for more
Look I am a paint contractor I explain to people what I am offering. I don’t do any advert or social media all word of mouth I have 15 people working for me and and trying to push over a million in sales and as a mom and pop painter this is huge. I come in knowing I can walk away and not care while years ago I would sell my ass for Pennies. Don’t worry about things you can fix and don’t worry about things you can fix.
I'm rooting for you! @hokulani
Me too @HokulaniDesign !
When you assign a value to what you are offering you are telling the people what is the value that they should also assign to it. I've been working in the medical field for 10 years and my mentor used to have this huge fees for the country we live in, quarter to half of the minimum wage of the country per 30-60 minutes of therapy. This is the value he assigned to it and he said that like these people really took it serious and were dedicated to the process because they had to sacrifice some "pleasures" to afford the treatment and in this way they really had results because it was something important. For many people money is the result of an effort, so in this case he was asking them to put "x" amount of effort into their own healing. In other cases when people really needed and were really ready to do what they could to heal, he would leave it at half price or even did it for free. (Like someone would come: "I really need this but I don't have the money for it, can I pay in installments over a few months, or is there anything I could do?" and those were the best patients. One time he even said, just bake a cake and come and we eat it together and that's enough. But the people showed the willingness to make the effort.)
Felt to write this experience, maybe it helps you or someone else :)
I believe I heard this from you..."We are proud of our pricing; it is what it takes to meet and exceed our clients' expectations"
That's a good one!
gold!
My dad was a contractor, the client brought multiple contractors out. At the same time. So 3 of them together start bidding, my dad gave one price. The others started going lower and lower. Eventually they stopped, and client shook his hand and said “You stood up and gave a firm price, I appreciate that.” Did several decks, gazebos and what not for them over the years. Client for life.
Except this never happened did it?
@@brynleythomas5525Of course it didnt. Assuming all contractors brought out had quality skills, no one would choose the top price lmao
Guys, if you pay peanuts you’ll get monkeys. This is how business works. The lower someone’s bid the less they are paying their people. This will almost always mean low skills.
@@markturner6755 yeap, the whole world works the same, unless of course you got some magic supply of people in slavery mode working for peanuts. But if that happens, your competitors would have done the same and everyone will pull the base price lower together anyway,
This is a great way to get bad quality contractors and learn nothing. It takes more time and thinking, but you should be vetting them individually, getting info from them along with quotes and back-checking what they tell you against what other people have told you.
You learn:
Which ones are incompetent
Which ones are too expensive
Which ones are good candidates
Basic important facts about the job you need done
Well put. As a woodworker, I don't have the pricing discussion with people at all. My prices are set by what it costs me in time and materials to get to the end product. If the customer cannot meet that price, my product simply is not for them.
That’s it
Exactly!
"If the customer cannot meet that price, my product simply is not for them." - totally agree. Why, though, does being a woodworker mean you don't have pricing discussions?
@@bryanwadd For me, it's because I have so far only made things on speculation of sales. I know what it costs me to make and can set it's worth accordingly. Custom work by contrast requires that discussion.
@@bryanwaddAnyone who deals with physical materials has an easier sell than people who sell creative or intangible intellectual goods or services. If wood costs x, then a woodworker must at least charge more than x, and they can literally include cost of materials in the invoice. When you are selling creative services, the cost of x is entirely dependent upon intangible market value, and that is why creative people and services have a harder time discussing their price.
"A bad deal always gets worse."
I don't remember if I learned this from your channel or somewhere else, but this advice has been SUPER helpful for me over the past few years as my business has begun to mature. I've worked really hard to develop Drama Radar (patent pending) so I can pick up during the discovery meeting whether this client is going to be a headache moving forward.
Another correlated thing that's been helpful for me is this question:
"Are you trying to be Wal-Mart, or Whole Foods?"
Both have their place in the market, but both service vastly different types of people. No shade against Wal-Mart, but price-focused shoppers tend to be the most nit-picky and argumentative. The same is true in just about any industry.
I think the most price-focused shoppers typically know exactly what they are willing to pay. However, the "what" in that sentence is the product/service/feature they need, not the price. Then they will look for exactly that and pay as little as possible for that. They may seem nit-picky because they will argue against paying for any details that is not included in their needs.
However, the method Chris described in this video seems to be spot on for these customers, too. You just have to spend a little time to figure out what they're actually looking for and then explain that you can agree to drop everything else but exactly the stuff the customer wants and that can be used to reduce the price.
If the customer honestly cannot afford even the minimum spec implementation, then they were poorly educated from the start and simply wasted both of your time. However, if your pricing is transparent (that is, you can spell it out on your website or you have some kind of automated calculator the potential customer can use), that should reduce wasted time a lot because potential customers can figure out if they are even in the same ballpark for the expenses.
the first sentence of your comment is kinda an eye opener… thanks a lot!
Yeah, really, who would ever want to be the biggest, most successful, most populous employer serving millions of customers daily while still generating tons of profit? Who would ever want to be WalMart?
WalMart is a disgusting business for a good number of reasons, however if you're _only_ concerned with success as the video's creator seems to be, the capitalist goal is _most definitely_ to be WalMart. There's no question to that.
"I am altering the deal. Pray I do not alter it any further."
@@lVideoWatcherl please excuse my response if it’s out of kilter with your perceived comment, but why do certain sectors/individuals bash capitalism or those trying so hard to better their situation? I’ve worked massively hard all my life, not just a part of it. I run a small family business and know we’ll never be a huge player, but we still provide an opportunity for 9 people to work with us and support their families on the most generous wages we can afford for their contribution and skill set. Our staff work with us long term and are extremely loyal and supportive of our work ethic and attempts to run a successful business. Luckily they don’t face the same income stresses that we do, and that’s fine - I wouldn’t want that for them.
Over the 15 years we’ve run this current business it’s only the last two years that our business has been strong enough for us to take a reasonable, market rate as our wage. In Previous years our wage has been the sacrificial lamb if we needed more staff to grow the business - we took the decision to reduce overhead etc till business recovered. This is capitalism for most hardworking, driven and productive people whether they run a business with one employee, or one with hundreds. It’s based on risk and reward and it’s not everyone’s choice - but I wouldn’t have my life any other way. What I’d like to understand is why does this make me as a ‘capitalist’ a bad person?
I took on a large project where the client was very adamant on a certain deadline of two days that he wanted to be done urgently.
It was my first deal so I was nervous and I caved in. I didn't know how I should price myself and apparently my lack of confidence gave him the justification to try to boss me around. I took on the project without anything upfront and I spent the next two days not sleeping to finish the project.
I finished it and the guy didn't bother to pay me until after two weeks.
I've learned three lessons:
1- when you're doing the work, then you will be the one setting the deadlines not them.
2- always take at least half up front. They might scam you.
3- be ready to walk away from a deal.
Did you sign a contract with the client? They can’t scam you if you do. And you’re not necessarily the one setting the deadline even if you’re hired to do something; sure, you can decide to walk away if something doesn’t work for you, but if someone needs something for a certain event (for example), you can’t set the deadline to after the event just because you’re the one doing the work - that just means you have to tell them that you can’t work with them (point 3).
Taking half up front is a red flag and indicates you may have cash flow issues or you're going to to scam the customer. I prefer to pay immediately after work is performed, like the day of, or day after.
Two day turnarounds on short notice is a sign to charge more for a rush fee. If the client really needs it in a rush they will pay. You lost sleep so you put more of your time into the project. Don’t disclose the rush fee just factor into your rate for the job. And definitely get in it all in contract.
@@renli3d That's a great way to get screwed. I know from experience. Clients will scam you the second that have the work in hand and you have no recourse once the cat is out of the bag. I get paid for my time whether they choose to proceed or not. Once you get F'd for your payment policy, you'll never do that again.
@@whengrapespop5728 Sometimes taking legal action to enforce a contract is more cost, time, and effort than it's worth to collect. Depends on how much you're making.
I'm living proof that my success is because of this guy. And I'm in South Africa. These teachings are universal.
Thank you 🙏
Same. Also in South Africa.
This video has good insights, I did exactly what you're recommending about two weeks ago. The client ghosted me after I sent them the updated price that's within their budget range, because I changed the scope to match the price. They wanted to pay less while the scope remained the same. I never change or justify my price, I am more than happy to walk away from opportunities. Great video, you're one of the few people on UA-cam that speak about the path that you've actually walked.
Yep, it's not an exact science and you need to learn to read people, read the realities of clients' budgets and measure the non-$ values of a situation too.
Price-bracketing, diff packages are good options. Remove line items before discounts....and if you do give a discount make sure to put it as a minus figure on your invoice so the client knows the lower price isn't the standard price.
This is the right approach, never discount your pricing / fees to win the work. Write your contract that spells out what is covered and what is extra. In otherwords, spell out how scope creep is addressed as well as work not covered by the original estimate and SOW. I did over a decade with large global agencies and this is how big contracts were handled as well.
If I may, my only criticism of the above is that you both ended up losing. What you wanted was to win them over. But ofcourse thats easier said than done.
I never "send" proposals or estimates without having an actual discussion first. You want to have that conversation in real time so you can hear any objections or get the discussion going to help
Definitely never discount your price at this stage and have 3-4 options on the side that have fewer features and benefits. I have found it helpful to play with different scenarios before getting on the call so I can very easily readjust a proposal
Therapist: Don't compare yourself to other people.
Employers: Why should we hire you?
People: Why should I date you?
Me: Understandable, have a nice day. 🗿
00:00 🤑 When clients challenge your prices, it can induce anxiety and panic.
00:27 🌬️ Stay calm and objective during pricing negotiations, it's a business discussion, not a personal attack.
02:06 📊 Focus on "must-haves" in your service, and discuss "nice-to-haves" as add-ons to negotiate a win-win.
03:03 💡 Be a trusted advisor, recommend priorities based on client objectives for the best outcome.
04:14 🧠 Consider the symmetry of logic: Would you ask someone to justify their worth in a personal relationship?
05:40 💰 Your prices are based on a calculated formula; don't feel the need to justify them, present themconfidently.
07:56 🚫 Not all questions about pricing are legitimate; "Justify Your Price" is often an unreasonable demand.
Would you ask someone to justify their worth in a personal relationship?
In the manosphere… yes 😂 - “What do you bring to the table?
Thank you for the summary!
Thanks for posting time codes of key takeaways!
@@ryanswift5411"first thing, I bought this table"
So try and work out a creative solution that works for both parties. They get what they want in the project, and they pay you what you're looking for.
I'm a professional photographer and I try to explain this concept all the time to other photographers. I've seen photographers proudly post emails they've sent to prospects who balked at the cost that literally detail every single expense down to their electric bill and gifts for their second cousin's son's upcoming 4th birthday party as a means to try to justify their pricing. And not once has it worked to convince someone to change their mind and book with them. As a matter of fact, I would argue that it comes off as a passive aggressive way to say "how dare you question my pricing."
I've also seen photographers just immediately cave and lower their pricing just to get the job -- which I've argued just suggests to clients that their pricing is arbitrary (which it very well may be, but that's not something you want potential clients believing). I tell them that it's totally fine to reduce what they offer in order to meet the client's budget ("we can eliminate the engagement session to come down to your budget, or if that's important to you maybe we can reduce the coverage of the wedding day to just the essentials.")
"For every customer, there is a vendor"
Very Valid🎉
Thank you Mr Chris.
Absolute truth!! I've been watching you since I started my business 4 years ago. This is the first year we hit $100k in revenue by August(started in April, Seasonal Business). Price justification is something you do NOT need and it will inevitable hurt your product or brand. Always place yourself as the authority as the vendor and stand strong on your pricing. You will be MAKING MUCH MORE and WORKING MUCH LESS for BETTER PEOPLE.
What I used to do when a client didn't like my price was figure what they wanted most in a project and take that out of the price. 99% of the time they went with the original price. Another thing I did with some clients when I knew they wanted to bargain is mark the price way up and let them bargain me down. Most of the time they paid more than if they let me just give them the price. Some people just need to bargain, it doesn't matter what it is, it's in their DNA. There were times in my career that when I raised my hourly rate I got less argument about my prices.
"Not all questions are legitimate." Damn right!
Part of being a professional is emotional intelligence and knowing how to adapt for a certain situation. Whether it is arrogance or simply knowing your worth, there are times when that it is appropriate. It may feel uncomfortable for some perhaps because of cultural backgrounds or other reasons. But you can train yourself to overcome the fear of conflict and know when and how to use that skill. You'll become that much more dynamic of a character.
You don't come off as arrogant at all Chris. You are confident and respectful. You know your worth, your positivity and energy have always motivated me. Thank You for all the support!
I think setting healthy boundaries in general are not portrayed or taught well. This holds true in every relationship, business, romantic or otherwise. Thanks for the healthy reminder!
Bro you hit the nail on the head. Change how we see and see how we change!
Thank you for the insights Chris. I was afraid to increase my prices before, now, thanks to your mentorship, I can with so much confidence. And guess what? People just pay with no complaints. I've realised people are actually attracted to quality work and the value no matter the price.
NOT ALL QUESTIONS ARE LEGITIMATE
This is profound. Zen and The Art of Motorcycle Maintenance addresses this problem, in which an illegitimate question introduces a "mu" state when asked and cannot be answered satisfactorily.
Thank you Chris for sharing this awesome content and shout out to all the production crew at the futur!!!
Let me first say Chris, you hit the nail on the head dead center! Sales are the hardest part of any business. You just gave us some great pointers even if we are the "cold callers" hitting up businesses for new work. The dating analogy was something I never thought of, perfect and easy to remember! Thank you!
yes
My conclusion after following your advice for 1 year: it works for freelancers with a rotation of good clients. Not for who is struggling
This is such a strong video! Thanks, Chris!
Hi Chris, I really appreciate your videos. You say in this one that in most other industries people do not ask you to justify they prices. However, I work as a handyman/general contractor and there are customers who definitely want us to justify our prices. Instead of justifying or negotiating, I share with them the kind of service they will get from us (professional , honest, very clean and communicative, etc) and speak to their fears and concerns with empathy. I don't win all of them, but the "right fit" customers will be supportive and eventually become clients. And the other ones that just want a cheap deal will move on to the next person. You've helped to bring more clarity and build confidence when i speak to potential clients. 😊
Do you ever answer their question with another question?
@@thefutur yes, usually I try to ask them if it's okay to ask them more about what their concerns are about the project so that I can better understand and see if we are able to help. I feel that even if I suspect they are out of my price range, just asking them questions, show empathy and offering alternatives, like a diy solution is better than just shutting them down. But people in my industry need to remember that not everyone is our customer and that is okay. Many in the handyman industry actually want to help people but get kicked around by those who don't value the work and just want cheap labor they can order around. I think your videos are so relevant. It's important to quickly vet out the ones who just want to take something from me and waste time and instead find clients would value a relationship and will value the services we bring to them.
THANK YOU ... THANK YOU ... THANK YOU. Some lessons only come with experience.
Good, fast, and cheap ... some folks offer ANY 2 of the 3, not realizing that quality always impacts reputation. If you're not proud to put your name on the work for the price you charge, pass on the job. Otherwise, you'll find yourself running a volume discount business in a race to the bottom where even if you 'win' ... you lose.
Thanks again for sharing sir. Keep up the good fight
-- Frank
Spot On. I've watched this at least 3 times. Stand on your price. Its about the value you bring to the market and if they don't see your value then they are not the client for you. They will abuse and disrespect you going forward if you cave!
Just introduced us to the downsell, very strong technique that most people are afraid of implementing because they're afraid they'll get less but the trick is providing less for the lower payment and telling them that's how much it cost. Anyone who's done some sort of business would probably already understand how things get priced anyway. Never forget, a deal is only meant to happen when both parties benefit. If you don't benefit what you could benefit, you're doing your client a diservice by building resentment for what you are worth.
I don’t find you arrogant at all. I’ve genuinely enjoyed your content. You get straight to the point, give really good examples, and I find it refreshing and inspiring when people love what they do, know their self-worth, and share their expertise to help others get there. I’ve learned a lot from you, so thank you!
Whether starting out, or 40 years along - in the business of selling creative work, these thoughts are solid gold. Saved to watch again and again. Thank you, Chris 👊🏼🤠
My pleasure
Chris you NAILED IT !
It is so refreshing to hear you explain pricing and why you should not justify or adjust your pricing. I explain to new photographers that "You Never Change Your Price without Changing the Scope of Work". Otherwise they get the idea you just made up a number, and if you will drop it just by them asking, maybe they can get even a lower price.
Absolutely!! The Price, is the Price... and Maybe we're not a good fit for your project at your stated budget.
I’m a huge believer in quality over quantity……… sitting and listening to this , feels like a lot of words and quantity . ……. Less is more . But Chris is a lot and a lot to listen to.
You are definitely helping me in my business to make smart, professional decisions. I really get a lot out of your videos. They are very educational and helpful. You are doing the world a great service. Chris don’t start doing what you’re doing.
A wise man once told me, “You’re not paying for my time, you’re paying for my knowledge.”
I dont think you're arrogant or condescending. In fact, I love your frankness and straightforwardness. We love your unique views on sales.
God bless you
Preach brother! We all have bills to pay and food to put on our tables. If they can't afford our price so be it. Also I wanted to say it's usually the ones that have a low budget that want the most work done!
Thank you, Chris. You're helping creative professionals like myself learn how to establish fair pricing. I often find myself wondering why some clients with tight budgets compare my hourly rates to no-brainer tasks. When I don't secure a project at my carefully calculated hourly rate, I choose to invest that time in skill improvement rather than accepting low-paying clients.
I appreciate you and team for all that you do. I hope everyone watches to the end because this applies to all areas of life. thank you for sharing 🙏🏽
You're absolutely right, not arrogant at all. I've been in this business long enough to know that people would bleed your services for free if you allow them to, with no remorse.
Hell yes, you are spot on. The issue with price hunters is they will never be happy and squeeze you for everything all within a rate (if you drop) that you can’t justify if you want to make a profit. Not to mention the headaches and constant scope creep! Ooooof. Listen to Chris, kids. All facts! 👏🏼
Your content is so uplifting and I love how you give your platform the necessary tools to assess their qualifications properly - starting with having the right mindset! Ever since I started evaluating myself in the right way, treating my product/service design expertise at the right level - I started seeing completely different results in any business/networking interaction. There are so many people in the design field who are afraid to tap into their own self-worth because they always perceive themselves as not being good enough. Thank you, Chris!
Thank you
PDQ. Price, Delivery (speed), Quality. You can’t have them all. You can have two. Which two are most important to you.
It feels like you're just calling creatives to be creative problem-solvers in business/sales. It's so key to keep a level head, whether you've been hired or not, and figure out what the next right step is. It's helpful how you framed up that it's not a rejection of YOU or insulting YOU, it's just how two business people talk about a thing. I've used this several times, and it's definitely worked to my benefit. I either dodge a bullet or get a client with terms that are good for both of us.
There is a difference between an excuse and an explaination. Great video!
How did you know I needed this exactly at this time, Chris? Thank you so much. Can’t wait to share the results if all goes well! The biggest thing I’ve done yet… 💙🚀✨
I read your mind Matthew.
u clown
Massive thanks for sharing this thought process. I'm transitioning between jobs, so tried to draw a parallel to my situation and it still makes so much sense. Such an important perspective to have for design professionals.
Just to add, the consequences of people-pleasing can compound and can really come to bite you. Anyone who is prone to this behaviour, do yourself a favour... identify & remedy it
The best advice I've ever read is to see it as a game and stop being attached to the outcome. If at that point nobody is willing to pay the price you want, your MVP product sucks and you first have to increase the VALUE of the service. If only some people haggle over price, you're likely spot on and they're tirekickers, wasting your time. You'll be better off without them. Say "I don't think our service is a good fit for you right now, thank you and all the best" and move on. There _will_ be someone out there to pay you your desired rate if your service/product is good enough.
100
Watching his content for years and in the early days I really does think that he is just arrogant but the more I watched this guy and understand him better, he is just speaking the truth. I completely agree with his point of the video. A price is a price. It needs no justification.
This is so helpful, thank you. I came from a family business that we used to explain prices all the time and we were always on the defensive about our pricing. Now I don’t explain in my own business and have seen so much more success and not to mention feel so much more confident in myself and my products. I don’t feel scared ‘losing' a lead to pricing, they probably weren’t my ideal customer anyway.
Chris Do has been my therapist since 2020
Haha
I'm new to your Channel and I have to say.. after reading the comments.. I'm hooked! Thanks for coming onto my page, the universe must of heard me.
It's hard to explain something to people who haven't experienced it. It's usually people who haven't experienced it that backlash. I agree with you. I had a prospect once - at my beginning - he basically wanted me to coach him for free and pay me later when he started to make sone money. I was burnt out. My two babies missed their mom, I barely saw my husband, had sacrificed a lot to put together the business and I was struggling having to do everything myself. So I snapped. I was like how dare he asks me for charity ? If he doesn't value the work, he can say no but he does, he wants to work with me, matches with my brand's values and not my competitors but doesn't want to pay because in his set of values, he's entitled to receive charity. This was a major turning point in the way I approach sales and quality leads!
In terms of negotiating and business, I have learned more from you than anybody else in the past 10 years. Keep doing what you are doing. I like your style: no bullshit... I will try to be at your next tour. Missed the last one in Amsterdam, unfortunately.
See you next time.
@@thefutur definately hope so
I love the Futur!! ❤❤ always putting us on Game, Business is very intimidating if u not used to the way things work
- Anxiety often arises when justifying prices to clients, leading to compromises or emotional reactions.
- Instead of justifying prices, detach emotions and view it as a negotiation.
- Mutual interest between client and provider is crucial for negotiations.
- Offer a structured approach to negotiation, focusing on must-haves versus nice-to-haves.
- Advocates for not justifying prices, as it undermines confidence and can lead to unfavorable outcomes; suggests presenting prices confidently without negotiation if necessary.
Excellent approach to an emotional topic. Well explained to boot. Adam Savage tells a related story from when he worked at M5 for Jamie Hyneman. Adam was working with a potential customer on a quote for a job. Adam reported to Jamie that the potential customer was difficult in the quoting process. Jamie told Adam to make them go away. If they are difficult in the quoting process they will be difficult in everything. One last thing, your goal isn't to land every job you bid.
Everything's a lever. If you want to change the cost, you must change the scope. NOT the price.
Self-confidence is not arrogance
You are self aware of your "razor" edge and unapologetic. It's inspiring. Creatives need to have the sensitivity slapped out of us every once in a while for our own good!
6:59-7:22 that’s right. I remember telling me this same thing when I was taking contracts.
Solid training.
I'm catching up! It seems that I was living in a rock somewhere! So much GREAT content. And literally I don't see the time by going throughout this channel. It really is an open book the gives new perspectives. It really opens your mind... and what I have also notice is that even if someone it's not in the creative or marketing space, there is a message of keep always learning, be agile and and be confident. It definitely is worth every second.
Welcome to the Futur
My conclusion after following your advice for 1 year: it works for freelancers with a rotation of good clients. Not for who is struggling
How do you grow that rotation of good clients? They don't fall out of the sky for anyone.
It's not one size fits all. You need to adapt the mindset, not just copy the situation. Setting out you need to acquire skill, experience and relationships. As an entry level creative person you'll likely be looking at entry level clients - choose those where you'll acquire skill, experience and relationships even if the money's not great.
Get moving and keep moving without sinking yourself.
@@zeitakulobusta9708 so its like, lower your prices first? (because entry level clients expect very low prices)
lets say you want a 100 for your work(just an arbitrary number) but because you have no portfolio yet(not because you dont have the skill, but because you had no foresight on making a portfolio and only now did you realize how important a portfolio is.. so its like, you have the skills but no way to prove it for now)
how would you price yourself on that? also how would you market yourself for that?
@@ViewportPlaythroughPrice out a few of these jobs and let them know what they'll get at full price, and show them, and let them know what they'll get/won't get at a lower price. Stand firm and resist caving and if they really want it, they'll come back and find a way.
People are really shitty about paying artists and constantly devaluing, so stand up and let them walk. But also if you take a low paying job, put low paying time/effort into that and make it clear.
Your confidence and personableness is as much a tool as any other you work with.
Really good content man. Learning a lot from this: The problem is that people hate reality and the truth. That is why they will say “you are arrogant” etc etc. They wanna work with you but refuse to pay. I’ve lost a bit of client by standing firm on my price especially the ones that calls and asks over the phone. When I tell them we should enter a conversation before quoting, they either leave or say they will email (which they never do). Most cases these clients aren’t for you! No headaches whatsoever!!
Chris teaches us to not undervalue our self, yes with approach like that you will lose clients, that never would pay you the amount you would be happy with in first place, and if you negotiate and justify your price well you make your self tag so that more clients who don't want to pay much will flow your way. Business is all about the connections, and the massage people will spread about you. You can make work for less clients and charge premium, if your work leaves the customer happy well he will tell others that you are offering best service out there, maybe pricey but worth it.
Or you lower your price to one client and he will go market you as that guy offers amazing service and also supper cheap. So you decide who you want to be!
If you're reading this and you happen to be a person that believes that doing that with your clients is the best way to lose all of them, maybe, you're serving your clients but doing an immense disservice to yourself - whilst loosing a lot of money in the process. And don't fall into the trap of feeling obligated to respond because the client phrased the question differently, such as: "I'm not asking you to justify, but I just wanted some explanation on that number". Is the same thing, that is just salles language and they are fishing for a justification anyway.
You cannot afford me? There are many things I cannot afford neither. I always leave a customer asking this.
I
Can’t believe I just found this wonderful Channel! Thank you 🙏
As a Product Manager, really love this video. Help me to see a little bit of Sales day to day
It feels scary to act assertively and set boundaries. But if you don't, you'll get trampled by your clients.
I haven't really gotten a lot of clients or live leads on my own yet. However, I for my most recent lead, when we discussed pricing I had the guts to tell him a nice big number. Of course he declined (he said he had a $0 budget, so I'm not sure what he would have even said yes to). But I felt good sticking to what I thought was good for me.
So why do you think it is that people feel more inclined to negotiate pricing in the creative space than in other situations?
Remember, we buy Value. Everything has a Price. If they are asking about price, they probably don't see enough Value. Most 'creative' jobs, from the inexperienced, sees the final results, not the work that goes into it. Think of that as a perfectly good example to work within your Marketing Strategy to show in some way the work that you do. This 'answer' should be on your website in some way. In a 'perfect world website/marketing plan' in today's digital online world, ALL/most of their concerns should be address before they even talk to you. Price is an easy common one that you need to focus on if you have yet too.
i tried selling this value thing and they laughed in my face.
@@eotikurac I might be projecting a bit here, but a common mistake is we see the value from our point of view and not theirs. Sometimes we pitch things that just does not matter to them. Ultimately you need them to see that what your solving is truly going to help them. The complex part is the thing, the art lets call it, is only 10% of the equation or solution. You might have a lot of other none 'art' things you need to do, and prove, that helps them too.
Example: A photographer is just a photographer. Nobody cares, they are a dime a dozen. What business hire is Marketer and Advertisers with the an indented result. Part of that process may very well include photos, but its the process they are buying.
In your case, do you have a complete process that solves the problem, or just a piece of it? Cause one has Value, the other is just a thing.
This video came at such a funny time because I literally just had a call 2 days ago with a prospect who was wondering why I was charging so much for a Done-For-You offer. One of the first things he mentioned was the sticker shock and I was proud of myself because I didn't concede on it! I opened up the conversation to allow room for flexibility, like you mentioned, but I honestly don't think I'd be upset if he doesn't end up converting.
Thanks for this! ⭐🧠
You know, Chris, you've managed to achieve something truly wondrous here. I've been at a loss, struggling to even identify what my "skeletons in the wardrobe" might be. As we are all too painfully aware, the most formidable adversary is that which remains unseen; moreover, we often don't realise what we're unaware of, do we? Yet, by simply posing the question, "Why should I date you?", you've ignited a profound insight within me. I've come to understand how, in my childhood, I constantly endeavoured to justify my existence to my divorced parents-to explain why they should love me. This skeleton is now being gently cleared away as I write this... Thank you, Chris, from the bottom of my heart.
Well done! Ideally parents imbue us with self respect and confidence. Without that we may become people pleasers, constantly chasing approval, instead of standing our ground.
Well, to be honest, when a potential client thinks you're "too pricy", they don't even reply back, which is way worse than telling you're pricy.
That’s why you discuss budget verbally.
I understand what you are saying but I do not fully agree with it. Some people are just out to beat you over the head with their prices. I just saw the report about a grocery store chain charging two different prices for the same item depending on the neighborhood in the same city. I don’t mind justifying my prices, but I always let them know that my prices are not negotiable. I don’t generally get offended by the question because sometimes people just don’t know how much work goes into a thing. I find for me personally that it’s a lot harder to come in with the “my prices are my prices” spill and not sound like a jerk. I could just give it wrong, but I seem to convert more sales by being firm that my prices are not negotiable and this is why they are my prices. I do get approached by the low Ballers that pretend that somebody else can do it for a fraction of my price. I always say to them “well financially you should go with that guy and while you’re at it give me their information because I have some work for them”. 😂
Haha that’s a great approach and I agree with a lot of your points. Not a lot of clients consider the time and money or even the amount of knowledge needed to even begin a business within the creative industry. I find that they can be at times arrogant and close minded, but if these are the kind of people who are trying to lowball you, I think there’s a good chance they don’t even know what they want for themselves. That being said, I love your perspective and I think that finding the good clients who understand what we do and why we do is soooo important. 😉
The 2nd part is where I'm inclined towards after following Chris for a long time!
In the service industry and the trades the only negotiation on price is the evaluation of what services they want to pay for, not the time and material costs to get it done. You just have to trust that the price you gave for the request is fair and hope that they can afford the price.
This is how much the Ferrari you asked for costs. Oh, you only have the budget for a Toyota? Ok, we can also provide a Toyota (or not).
Someone tell me briefly the essence of what he said!
8 min is too long for me too 😅
Whenever you get the question to justify your question, don't. Such people do not really want to work together with you, they only care about the price. So take a step back and tell them you are probably not the best fit for them, and say that this price has been determined by costs of living, quality delivered, level of experience, overhead etc. Don't go into detail, because their aim is to lower your price really.
@@nabilc1667 that's amazing 🤩, thanks for your brief
About essences you read in Aristotle
That is the price
Great advice. Also, viewers commenting on how you can be so arrogant are CLEARLY focused on the wrong aspect of your point. I'm going to guess the same people whining about feelings are also whining about not being where they want to be in business....
I would say you're probably right.
The way I answer this question is by saying, "This is what it takes to create the work that I do". That's it.
I also like Alex Hormozi's response to being challenged on price. He say, "Well, I could do it for more".
However, I have thought about a situation like the one described at the beginning of this video, where a prospect really wants to work with you, and you really want to work with them because of what it could lead to. For instance, because of what they do or who they are networked with, they could provide alternative benefits, such as arranging for something that creates free publicity for you. If that is the case, I might ask them, "What do you propose?" If they have a plan that is truly of mutual benefit, and they're willing to put it in writing (i.e. sign some sort of contract), then I might be willing to give them a discount on price in exchange for that alternative transfer of value. But only in that instance would I do so.
Good Stuff. How you state your projection is very fair; not a drop of arrogance !
Thank you Chris. I think you are on point here.
ALWAYS appreciate these videos and insights on pricing and general business dynamics. Thanks for sharing!
UNREAL ADVICE thanks! It's true, the creative services is the only area you hacky here haggling going on and I appreciate what you're saying. We work really hard and have spent many hours to get where we are so we should be more confidently going forth with our quotes and bit like when you're taking a job. I guess if you ever do wanna take a job, you need to negotiate on different areas if they're not offering you as much as you like. So clever concept to think of other ways to reframe it. And you know what? That's usually happened to me too, where I've suggested you could do this or that or do this for this. One big price and they usually take the one big price because they actually see there's value in it. So thanks for the reminder!!!! PS I'm dictating this if there are some weird typos and forgive me, too busy to go back and do them again haha, you'd appreciate that. Thanks.
love the title, I never thought of that yes people pleasing it a great thing but can set you back. I try to keep the luxury car mindset. these cars take time to make according the customers requests. It's not stored up on a shelf somewhere which can be easily shipped from amazon for next day delivery. I'm learning my time and creative energy is worthy of its hire. there's always a buyer, if there wasn't the world would be very different. Good luck to all in their business adventures.
I wandered into this wisdom in a different area of my life. A suspected narcissist I was dating for about three years told me about how she planned to travel the world and wanted a man that would travel with her. She then asked me repeatedly if I wanted to travel. I looked back at her and replied "is that your way to count me out depending on how I answer that question?" I knew there was a power dynamic behind that question and I knew the message behind it was "travel or don't be in a relationship with me." Trying to haggle down a price is them attempting to put it in your place beneath them in their perception.
The value Chris provides is beyond what I have found anywhere hands down. Hopefully, I can provide as much value to others soon.
Having been on both sides, I will say I actually really appreciate your advice and wisdom on these business interactions, because it actually helped me as a client understand how to come up with a more productive approach to asking an artist for a commission, and where both our needs and limits met. It’s great for those seeking services to watch your videos as well, is what I’m saying. Thanks for all you do!
Very clear and I will definitely put this into practice taking the defensive emotional reaction out
I LOVE this perspective! You can incorporate this type of negotiation into so many different things! Thank you for sharing!
I think you consistently provide really great advice but I also don't think your approach to business is the only valid one. I like to watch your videos and borrow what I feel is right for me, wrestle with the tips I disagree with to see if I can't understand your point of view, and then leave whatever I don't feel is right for me. Your perspective is still immensely valuable and we're getting a lot of value for free.
That’s a good approach.
How is this guy arrogant???
This guy is just spitting facts.
Thank you for sharing ❤