Win more work and have less payment disputes
You’ve probably been faced with payment objections more than once. We’ve all heard it before: “The price is too high for me”. This can be one of the most frustrating situations for businesses, especially those who are selling services and can spend a considerable amount of time preparing a quote.
Fee objections are common in sales. There are several reasons why prospects would reject a quote. Sometimes, it is only part of an expectation that pushing back on cost will get them a discount. However, a ‘no’ can also mean that the person doesn’t understand the “value” they are getting for the cost.
Whatever you’re selling, the best response to a price objection is to showcase the most valuable parts of your products/services. You don’t need extensive training to learn how to handle payment disputes. You simply need to further investigate the reasons behind your clients’ objections.
What Motivates Clients To Reject An Offer?
Businesses are in need of advice now more than ever, from legal and accounting to communications and crisis management. Meanwhile, outsourced professional services are often seen as “optional” by prospects who don’t understand how important it is to seek expertise. The ones that need your services the most would often be the most hesitant and reluctant to pay for it.
It is however important to not undervalue the service you are offering as a first approach. While discounting has its place in the sales process, being too keen to reduce your margins could lower your service perceived value. You should get paid what you are worth, and fee rejection offers you a window to really demonstrate your true value.
Price disputes are normally the results of one of these three circumstances:
- Unrealistic expectations. One of the reasons why your client might be declining your fees might be that they don’t understand the full scope of what they are paying for. If they say that your fees just seem high, this might mean that they don’t understand the ROI they might get from your services. It puts you in a position to objectively define what is included in your offer. Make it clear what you can accomplish on a short and long term for them and their business. Using clear and concrete examples, or introducing case studies and other clients’ success stories as proof points can reassure them.
- Cash flow and budget problems. If your client affirms that they can’t afford your services at the moment, it is important to get a better understanding of where the issue is truly coming from. First of all, you can ask them if the price is the only thing that’s keeping them from signing. This gives the person the opportunity to express any other concerns they might have.
Once you’ve cleared all other objections, it is time to explore how you can make your fees more affordable. An easy solution to cash flow problems is to offer flexible payment solutions. QuickFee offers client-centric flexible payment solutions that let your clients pay over time instead of in a lump sum.
Alternatively, you can also explore solutions to fit your services into your clients’ budget. You can ask how much your client is ready to pay and redefine the scope of a project accordingly. If you decide to discount your price, make sure that it serves your business long-term strategy. You can offer a lower fee for a period of time for example and then default back to your normal price, or accept to discount under the condition of signing a longer term agreement.
- Competition. Your client might already satisfied with their current providers or they might have found cheaper quotes online. “Expensive” is relative. Once you find out what the person is comparing your product or service fees to, you can then uncover what extra value you’re bringing to justify the extra cost. You must put on your investigator hat to discover your client’s true needs and see if they are being met.
Once you find the gaps, you can customise your offer and differentiate on value.
How To Showcase The Real Value Of Your Services?
Lack of trust in your brand or services might be the underlaying problem behind a fee objection, as well as not understanding the need or urgency for a specific service. To convince a prospect, the first step is to address the above.
Improve Trust In Your Expertise And Your Brand
Improving your ability to present yourself as a trustworthy expert in your field starts by showing empathy, listening carefully to your clients and prospects and investing in your own brand.
It is important to understand that a sale is not about you, but about your client. Make empathy a priority during sales meetings. A sale starts by building the relationship with the client. Put yourself in your prospects’ shoes and turn the conversation towards their own needs instead of defending your products or services. The key is to not to try too hard to impress and only offer advice once your client had a chance to thoroughly explain their situation. Positioning yourself as someone who can listen and acknowledge your client’s concerns will present you as a trustworthy, genuine advisor. This quality will increase the value of your services in the eyes of your prospect and help reduce friction when discussing fees.
You might also want to build more brand awareness and create content that showcases your expertise. Case studies and clients’ success stories are a good way to prove the quality of your service. You can also produce white papers, e-books or video clips which include free advice. Building expert content will help back up your claims and show evidence of your expertise.
Brand expert Stephen King once said: “A product can be copied by a competitor; a brand is unique. A product can be quickly outdated; a successful brand is timeless.” Make sure to emphasise the authority your business has in the market. Positioning your brand right can help convince your prospects of the extra value you offer and justify higher fees.
Reinforce The Need And Urgency Of Your Services For Your Clients
Are your services truly aligning with the needs of your prospects?
Pause and listen to your clients before responding to understand your client’s needs. Once you’ve acknowledged your client’s objections, ask open-ended questions to clarify and understand what are their current objectives. They might not realise how much added value your services could bring to help them reach their goals faster.
If you see an opportunity, present them with an overview of what results they could get by hiring your services. Make sure to give concrete examples and include numbers if possible. It is also time to share relevant stories and expert content you might have created. Relatable clients’ testimonials can create more confidence in your services.
Offer Your Clients Flexible Payment Options
If cash flow problems are still an issue, expanding your payments options could help you win more clients and reduce payment objections. QuickFee offers a wide range of flexible payment options that suit every client’s needs.
If you’d like to learn more about flexible payment options, schedule a demo with one of our experts to learn more.