How to: Land More Clients with Persuasive Fees
Finding out how much you should charge for your product or service is important, but the way you present your fees to your customers is just as significant. Studies show that the presentation technique you use can directly affect how much revenue you raise for your business.
Most Common Types of Estimates
Problems with the Email Quote
Options – This creates a yes/no decision situation, giving you only a 50% chance for an opportunity to make the sale.
Pricing – The email quote makes the primary focus set on the price, and not the result that the client is asking for.
Compared to Your Competitors – Email does not show how your service is different from your competitors, creating an invitation for the potential customer to compare your price to theirs.
Professionalism – A high value client will dismiss an estimate if it is given informally through an email.
Problems with the Invoice Style Estimate
Time – An invoice brings more attention to how much time the service will take, rather than the quality of your work.
Price Comparison – Listing all of your tasks and services makes it easier for your customer to compare them with the prices of your competitors.
Fee Separation – Creating a list of too many fees will cause your client to look at each one separately.
The Solution: Bundled Pricing
1. Bundle –
Add all of your fees into a single price and don’t give out hourly information. This brings the focus onto the end result of your product or service.
2. Up-sell –
Give your customers additional options to give them a sense of control. Your clients will appreciate this as they will only have to purchase the services that they actually need.
3. Present Limited Options –
Only present one or two additional options to prevent a reduction in sales. According to a study in a supermarket, more customers purchased jam when there were only 6 flavors than when there were 24.
The presentation of your estimate pricing will directly affect your business revenue. Create a bundled pricing system that is simple and easy to understand using the tips above in order to raise your chance of gaining sales.