We’d love to use you but…
Let’s face it – things are going to be tough this year. Rachel Reeves and her mates in the UK Government delivered an October budget that is adding to the cost of doing business. As a result, all expenditure will be heavily scrutinised to ensure Value For Money (VFM) and we suspect most customers will ask for 3+ quotes for all material spend.
Pricing can be one of the trickiest parts of professional services. Customers often push back, ask for discounts, or get hung up comparing quotes. So, how do you handle these conversations without immediately slashing your fees or losing the deal?
This week’s Three Things tackles common pricing challenges and how to respond with intelligence and confidence. Enjoy!
#1. “We’d love to work with you, but your price is too high.”
The first and golden rule for answering most pricing challenges:
DO NOT AGREE AND OFFER A DISCOUNT!
Take this as a positive statement—your service offering has appeal, and the customer is genuinely interested. Instead of immediately rushing to lower your price, take the opportunity to reframe the conversation around value.
Suggested response:
PART ONE: “That’s great to hear. Why would you love to work with us? What specific aspects impress you the most?”
The aim here is to get the customer to reinforce why they want to work with you (and not the competition) and to move the conversation away from price and more towards value.
Once this value is established, move the conversation onto their pricing concerns.
PART TWO: “May I ask what specifically you feel is too high? Is it the upfront cost, the scope, or something else?”
When you understand their concern, use it as an opportunity to highlight what’s included: “Our pricing reflects the comprehensive support and expertise we provide. For example, we offer [specific feature or benefit], which ensures [key outcome].”
If price remains a sticking point, consider revisiting the scope of the work: “We can discuss refining the scope to focus on your most pressing priorities—let’s ensure we align this to your budget and goals.”
#2. Avoid the “apples to oranges” trap
Customers comparing your price to others might not realise they’re evaluating entirely different offerings. During any pricing discussion your job is to ensure they understand the added value of your proposal.
Suggested response:
“It’s great that you’re exploring options—it’s always good to compare. That said, pricing only tells part of the story. Let me walk you through what’s included in our proposal, so we can ensure you’re comparing apples to apples.”
Use this moment to clarify extras your competitors may not include: “For example, our service includes [ongoing support, proactive advice, bespoke customisation, etc.], which helps avoid [common customer pain point].”
This approach shifts focus from the price tag to the quality, outcomes, and long-term value your service provides.
#3. “Can you give us a discount?”
Ah, the classic discount request. Remember, it’s your customers right to chance their arm and see if you’ll lower your price. An instant reduction will signal to your customer that your initial price was likely too high if you’re giving away margin so freely and may well leave a sense of overpricing. Instead of reflexively saying “yes,” consider what you can offer that maintains value while keeping your integrity intact.
Suggested response:
“Let’s explore what we can do to make this work for both of us. If budget is a concern, we could adjust the scope of work slightly to better align with your priorities.”
Alternatively, offer concessions that don’t hurt your margins:
- Faster payment terms in exchange for a modest discount.
- A phased approach, where some elements are delayed for cost savings.
- Additional value-added services, like a follow-up consultation or training session, that emphasise your commitment.
Where a discount is absolutely necessary, frame it as a one-off: “I’m happy to extend this adjustment for this project because we’re keen to build a relationship. For future work, our standard rates would apply.”
Failure to make this clear to your customer will cause significant challenges for your next job where they will expect to pay your discounted rate forever more!
Final Thoughts
Pricing challenges aren’t about the numbers—they’re about perception. Reframe the conversation around value, ensure customers understand what they’re truly paying for, and hold your ground on discounts by showing flexibility where it matters most.
Now go out there, set your fees with confidence, and make your value unmistakable!
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For January only, we’ve slashed the price by 50% to only £250! You’d be mad not to!
