It can be discouraging to meet with a potential new client and deliver a pitch-perfect presentation only to hear them say, “I’m sorry, but we just can’t afford it.” While it’s challenging to turn things around at this point, all hope isn’t lost. If you’re able to add some more persuasive details or meet them halfway, you might still land the sale; but even if you can’t close the deal today, your reply may persuade them to reconsider you down the road.
Sometimes, a little extra effort and a bit of empathy can go a long way in turning a hesitant potential client into a customer and raving fan — whether that’s now or a little bit later. Below, 12 members of Business Journals Leadership Trust share some smart responses and next steps you can take when a potential customer says they can’t afford your product or service.
1. Explain the impact you can make in terms of speed and quality.
At scale, the impact of speed and quality on capturing revenue, providing a good customer experience and improving employee efficiency often significantly outweighs differences in the cost of developing systems. Companies compare the cost of alternatives that often have different quality and risk profiles. Evaluating the impact of a project versus just deciding based on cost often leads to different vendor choices. – Robert Elfanbaum, Object Computing, Inc.
2. See if you can adjust your scope of services to meet their budget.
Ask, “What is your budget?” By understanding the customer’s budget, we can usually adjust the scope of our services to meet their goals and budget. Whenever possible, we ask about budget early in the process, but often customers do not know (or won’t say). We also have a “price list” that we share with our customers so they know generally what our pricing is early in the sales process. – Rebecca Thorburn, Visible Impact
3. Take a ‘Goldilocks’ approach.
We provide proposals via the “Goldilocks” approach — that is, we offer small, medium and larger-scale solutions. This allows potential clients to see what scaling solutions can do for them and how much it’s going to cost them for each. We also encourage clients to consider what success for the engagement looks like and think about the amount of time, energy and leadership it will take to get there. – Liz Wooten-Reschke, Connect For More
4. Show them how your product can save them money.
We provide software as a service products that not every business can afford, and even those that can sometimes balk at the price. So we show them with case studies — or with a willingness to do some test cases for them — how our product will actually save them money. Having a solid list of current customers always helps, but we get personal and tell them how we can help improve their top-line growth and bottom-line revenue. – AJ Brown, LeadsRx, Inc.
5. Extend the conversation by showing flexibility.
If possible, say, “Let’s find a way that I can help you at a price that works for you.” This extends the conversation. The more I learn about what they are looking for and the more they learn about what I provide, the more likely it is we can find a way to do business. Sometimes clients think that the cost of what they need is far higher than it really is. – Judy Zimet, Esq., Berkshire Hathaway HomeServices AZ
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6. Ask what price they were expecting.
I ask, “What did you think that it would cost when you reached out to me to schedule a meeting?” This question helps me understand if this is a negotiation tactic or they actually just didn’t understand how much it costs. From there you can proceed to negotiate if necessary or point the person to a lower-cost resource or partner who can help them. – Christopher Tompkins, The Go! Agency
7. Educate and explain the full extent of your services.
I suggest digging deeper into why they think they can’t afford your service. Many times I have found hesitant potential clients either are not using apples-to-apples comparisons for hardware or services or they don’t understand all that is bundled into our services. We hold to our rates, as we have a sense of what other high-value managed service providers are offering. If they are comparing us to a one-person IT operation, it’s not a fit. We’ll always educate and explain. – Jason Comstock, Clarity Technology Solutions LLC
8. Provide options that make it affordable over time.
Help them with options that could make your product or service affordable over time, whether that’s through tiered packages, payment plans or some other method. People will be more receptive and willing to work with someone who has helped them brainstorm ideas to make a deal happen rather than slamming the door in their face. You never know what that sale could grow to, so exploring alternate solutions could go a long way with a customer. – Messina Truttman, Beck Flavors
9. Talk about the opportunity cost of forgoing your service.
Discussing the opportunity cost of passing on your service can enlighten people on how they could better use their time. Ask, “Is it worth doing this yourself and taking time away from your family? Time away from your friends? Time away from your passions? Time away from ‘you’ time?” Once people understand what they are giving up, they generally find the cost much more acceptable. – Zane Stevens, Protea Financial
10. Offer to start small, and provide a guarantee.
Ask them what they can afford. It is often the case that organizations have developed beliefs around pricing. If you get your foot in the door and demonstrate your value, companies often find the money to continue important work. Start with a small project and prove your worth. Additionally, a money-back guarantee is a strong way to put your money where your mouth is and enable people to take a chance on you. – Kimberly Janson, Janson Associates
11. Help them find an alternative solution.
Stay cool and calm; let them know it’s OK if they cannot afford you, and help them find an alternative solution. Though the timing may be off now, fortunes may reverse for that individual or company, and you want them to remember you as someone who left a good impression. Don’t kick someone when they’re down — show value and be empathetic, and business will find its way back to you. – Matthew Halle, Lead2Growth
12. Stand behind your rates.
When you are truly in touch with the value your services deliver, it becomes easier to turn away a client who cannot or will not pay. I find it productive to stand behind our rates, and I never apologize for them. When an attorney/client relationship begins with concerns about payment, it’s generally a relationship to avoid. – Beverly Block, Block & Associates, LLC
