Why Explaining Your Prices Undermines Your Leverage with Clients

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Explaining your prices undermines your leverage with clients by giving away too much information about your pricing strategy and leaving less room for negotiation.
Instead, it is better to use phrases like "it's our policy" or "that's what we charge clients like you to do work like this" to maintain some level of uncertainty and to leave room for negotiation and value-added services.
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Опубликовано:

12 янв 2023

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Комментарии : 556

@tashy1202 5 месяцев назад

I've said this time and time again. Justifying your price cheapens you. Accept that not everyone is your client.

@bloodblooz9831 Месяц назад

yeah. that's the point, you are not the customer

@dalasnixonturnage6394 Месяц назад

💯❣️True Facts, Darling 💯❣️

@doducduy96 11 месяцев назад

I charged double the rate for dog sitting in my area. Most people charges $20-$30/day, I charge $60/day. I treat the dogs like my kids and they jump with joy whenever their owner even mention of going to my place to board then get sad for a day or 2 after leaving. Ended up with a bunch of super well behave, well trained dogs from all the wealthy households in the area. The people who question my prices often had bad doggos that I don’t wanna sit anyway. Know your worth and stand by it.

@richape9288 Месяц назад

Start charging $120 TODAY. You are worth it.

@hamie63_m Месяц назад

Cheap people usually have a-hole dogs because they never got properly trained lol

@DanieleManca1983 11 дней назад

@@richape9288😂 damn right

@carbb5760 Год назад

Ya I essentially use the line: we are very proud of our pricing, it is what is required to provide the level of service our customer expect. I find it’s vague enough yet provides people with confidence they are in good hands

@thefutur Год назад

Love it

@afcgeo882 11 месяцев назад

And the level of service is the justification.

@nuke2625 2 месяца назад

Nice

@dexterclayton Месяц назад

love this! a great middle ground between not justifying your price but giving your potential customer a confident answer

@carbb5760 Месяц назад

One other thing that can be really helpful is stay focused on project creation, identify customer needs, find solutions to their problems then put a price to deliver exactly what they want. I never discuss budget with customers, it’s much easier to sell your work when you have a project tailored to what people actually need and you can sell it for top dollar.

@Nim733 10 месяцев назад

I feel that I have always been overexplaining myself / Overproofing. Glad to see this clip

@WarriorsPhoto 15 дней назад

I love these kinds of methods. It shows a lot of confidence in what you are offering!

@richardjamesnewton Год назад

My proof is in my portfolio. I recently had a client ask me why I was charging so much more than other freelance video editors. For me it was simple. I said, “If you can get the same level of work for a much lower price then you should.” The reality is that a lot of people care more about their pockets than a higher level of quality. But they will always push their luck. Freelancers, please, start charging more. You’re only stunting your growth if you’re winning projects with low pricing.

@emmysan8784 Год назад

This answer is really good, thank you

@starterpvck2043 Год назад

I do a pricing breakdown in my proposals to clients, are you suggesting we don’t do this either? Or we just don’t explain our price when quoting on a call or in a meeting? If anyone has some insight, I’d love to hear it!

@greatarabia8091 Год назад

I don't work with people who don't do price breakdowns if they're more expensive than average. The guy in the video can afford to do that because he's well known and has many clients. Don't take his advice seriously if you want to be successful as you grow your business. Once you get to a point where you're in control and have many customers with a great reputation; then you'll be able to do what the guy said.

@richardjamesnewton Год назад

@@starterpvck2043 My comment is in response to a client who is questioning my price. Personally, if a client asks for a bunch of deliverables that tie into the same project, I quote one full price. “This is what it will cost for me to get this done for you.” I’ve found that clients who ask for detailed pricing breakdowns will always nitpick at every little cost. And believe me, they will drive you nuts in the long run. For me, these aren’t the type of people I’m interested in working with. I want clients who ask me to get something done, accept my price, and smile when they realise the price was worth it. It’s worth mentioning that I have a great client base and I’m not desperate to close every potential client. I can afford to be picky about who I work with.

@nicholasolivas317 Год назад

correct. They don't have money put aside for marketing but act so needy to for services. They have two choices, pay for it or learn to do it themselves.

@C-wey Год назад

My stingiest customers always wanted the best deal, they want something extra thrown in, they want custom this and custom that if you let them they will add work during work and ask of they can get a break on it. Then when the job is done they will ask why you haven't refunded them for the extra bit of material you had after the job. Don't work for entitled people, even if they are rich they will be that same customer.

@jenniferschultz7178 Год назад

You just explained! While I have a business relationship with my clients I value them enough to provide them with all the info they need to make the best decision. Because that exactly how I expect to be treated when I'm the customer. I've got 20 grand to invest in a project I'm always going to choose the one who sees me as valuable beyond the $ in my bank account

@KThyme 11 месяцев назад

Aaaand I would go look for other providers. If something's expensive, I'll pay for it when I understand why.

@artekal3d 11 месяцев назад

Two questions. 1. Which kind of work you're looking for? Is it something you can do but don't have time for it, or if it is something to solve something for you that you can't figure out yourself? 2. If someone explains to you about the why of pricing, but doesn't have previous work and social proof to show, would you consider hiring them?

@anthony9971 Месяц назад

I think there’s a better way to sell yourself when explaining cost-yes I am expensive and you can find someone cheaper and that someone will give you a much lower quality product, so much lower that you might have to come back to me anyway.

@qasimrashidi6870 Год назад

As someone who has helped my dad’s business. The customer don’t even care if the your price is priced appropriately they just want to make it lower.

@promisejidechukwu2039 Год назад

💯

@ashleighelizabeth5916 Год назад

Everybody loves your work until they have to pay for it.

@Crossmainst228 Год назад

@@skillustrates so true. I feel like a good way to counter them would be to ask a higher price then you actually want to charge and when they try and haggle make them feel good and be like “okay you know what I’ll do it for you at this price then.” Makes them feel like they won but you know you really got the price you wanted to charge anyways

@skillustrates Год назад

@@Crossmainst228 Right. I’m not a master negotiator yet so I don’t know if that’s best practice, but I can tell you that it has worked for me.

@Vonlock Год назад

False

@stellarbyo Год назад

This is my experience! The more you explain, the more they bargain. Just saying "That's what it costs" (or something like it ) is a good response to filter who is your client and who isn't.

@shiffterCL Год назад

Lol, if someone actually said this to me I'm 100% thinking it's a scam.

@EjaeA Год назад

@@user-zk9yr7vc2llose "bad" clients. The cheapest clients are the most demanding. I would rather look for who can pay my rate than go nuts working with a cheapskate.

@afcgeo882 11 месяцев назад

@@EjaeA1. ALL clients are demanding. Learn to leet their demands. 2. If someone questions why you charge so much and you have no answer it’s literally just one of two things: a - You have no idea or b - You’re purposefully trying to overcharge them.

@Queenieb03 9 месяцев назад

@@afcgeo882that’s a broke mindset. You would be thrown off my client list & blacklisted quick with that attitude. I can only imagine how annoyingly stingy you are putting in orders. I would never take the time to bargain a sale with someone like you or have any of my employees deal with you. If you need an explanation on why something costs what it does, you simply can’t afford it.. Can’t afford steakhouse? Go to McDonald’s or get in the kitchen and cook. Please stop deflecting on hard working entrepreneurs.

@richape9288 Месяц назад

@@afcgeo882 Or C they don't have the money to be working with an expert. I see it all the time.

@promisejidechukwu2039 Год назад

Chris Do.. You are the best Sir. I love you. I've learned so much from watching your videos here. Love from Nigeria 🇳🇬

@msmarlee Год назад

Yes! You don't have to explain anything. I don't have to prove myself to anyone. My work, longevity in business, rapport with clients, etc., already speaks for itself. He is so spot on! "You're welcome."

@StephanMoss-tc8sn 5 месяцев назад

Very useful content. Thank you and your team so much!!

@haakoneltvik Год назад

Amazing video Chris. This nailed this point home for me. More content like this, love it!❤

@thefutur Год назад

I'll be going deeper on this at the workshop Haakon

@haakoneltvik Год назад

@@thefutur Ahh wonderful, good that I have a ticket to it then!😄🔥👌🏻

@CYBERYOGA 14 дней назад

Best advice ever ✅

@matheus.wagner Год назад

This is definitely the best advice I ever heard from Chris. I've used when negotiating with clients, with other companies, and even in job interviews. I'm always hard set on price (within reason), and deflect every negative comments, and at the end, when I start naming my previous clients, I always ask them if they'd like to call them right then and there. Since I've started this, I closed really nice deals, and let go of the ones where they didn't value me as much I though I was worth.

@quick906 Месяц назад

This approach seems like a good way to lose a lot of potential clients.

@jordanthornton Год назад

Straight to the point, thank you - timely video also as I'm currently increasing my coaching fee by another 50% for the next six months ahead. I've never been asked this question directly by a qualified potential client, but I always appreciate an injection of healthy financial mindset. Thanks again, Chris.

@lucash1980 Год назад

If you're not being asked that question then you aren't charging enough.

@JuanRamosNCWrestling Год назад

Truth. I own a services business - when people complain about the price, I tell them "our service and results speak for themselves"

@Mrjvc163 Год назад

There’s this but you also need to learn how to handle objections because not all clients/ potential clients are equal. This also depends on the volume you do, track record and the price tier of an item you’re selling e.g. services, plane, yacht, house, shoes, makeup etc You don’t have to be defensive when someone asks a question because a question is not always an objection.

@thesoundmajors9858 Год назад

He wasn't defensive in this example. The point is not to go into a justification mode because then all the clients are going to do is pick apart your reasons. Most clients who have the budget and understand what it is that they're searching for do not spend time trying to figure out why services cost that much. They already know why.

@419chris419 9 месяцев назад

Thank you! My clients love it when I'm transparent with them! They feel respected instead of "this is policy" as a answer. Save those for difficult/rude customers.

@melanieking1622 22 дня назад

This is such great advice and goes against what most people do I feel. Thanks for sharing 🙏

@homebusinessdad Год назад

Facts!!! Completely undermines what you do and what you offer.

@MultiFresh82 Год назад

I find myself doing this because I haven’t been creative content long…almost two years. When I hear your group dialog, my mind goes back to my sales background. This is huge component I’m going to incorporate. Thank You Chris

@threecirclesstudio Год назад

Love it! I learned to talk to leads as if I was a front line employee and take the emotions out of it. “Company policy,” love it.

@amjiuhg Год назад

All his advice i use when dealing with anyone from India😂

@thefutur Год назад

Haha

@shashankke250 Год назад

Because we are price sensetive But when it comes service, i have seen my own parents being okay for charging more 😅

@mrrohitjadhav470 Год назад

From India It's true we bargain everytime But never at MacDonald or any franchise Cz brand speak for itself

@GORILLA_PIMP 11 месяцев назад

I just got off the phone with some pretty helpful indianese people actually lol

@Queenieb03 9 месяцев назад

@@mrrohitjadhav470that’s crazy because they care less about you & give you less quality compared to high value small businesses. Lol

@Muslim-uc2bh Год назад

Thank you

@SagarSangamSahu 10 месяцев назад

Love this ❤

@oudonbail Год назад

i have a business in a niche area of civil construction for 19yrs i have never done breakdowns. Iv had people say it is required but i always say no breakdowns it costs what it costs to get us to do the job and i still get the contracts. Only thing i will ad is remind them of our 3 yr warranty that is 2 years above industry standard

@LawderOfficial 9 месяцев назад

like a baws 😂❤

@mgurney88 Год назад

Chris-this is a new nugget of information that I haven’t heard from before from the futur. Great question if it was from the audience.

@thefutur Год назад

I’m sure I’ve said this many times before. You may need to spend more time watching some pro group videos.

@safetythirdified Месяц назад

Thank you!

@henriksorensson 11 месяцев назад

I love this stuff. When you are trying to proof anything, you lower your status and authority.

@dominantproductions8973 Год назад

❤. I love this, and I needed it. I also absolutely love that he ends it with, "You're welcome." 😂. Thank you, for real! 👏😂

@jeremychurch590 Год назад

I believe a better response is - “that’s an interesting view - what makes you feel that’s expensive?” That creates open dialogue and you might get some insights into what your competition is offering. Quite often it’s not apples vs apples and it is far less dismissive.

@swrv_sounds Год назад

And in real life they will then spew bullshit about how they can’t afford it, because if they could they would have bought it

@RomeloRoman Год назад

I don’t agree, you don’t have open dialogue when you’re purchasing a $1500 iPhone… you just buy it at the price they asked for it

@swrv_sounds Год назад

I was talking about services or goods that you can negotiate on Especially when the client perceives the value to be less

@humbleservant430 Год назад

💯 refusing to discuss the price is not power move and it shuts down communication. Even if you are not going lessen your rate you can still have a productive dialogue and attempt to save the deal.

@humbleservant430 Год назад

@@RomeloRomannot true. The pricing for these products are publically advertised and you know beforehand what the cost will be. You simply choose to buy as a priced commodity. Services are different and negotiable.

@iamhectorperez 11 месяцев назад

Man your delivery online has changed so much. Im here for it thanks for sharing.

@MrInsider33 Год назад

well in some parts you are right. But it's also really cocky and arrogant which wouldn't make me wanna work with a guy. You could say this is the market worth you found out to be fair or something. I agree with the not explaining, just not you did it there 😂

@artekal3d 11 месяцев назад

Yes, that i can agree with ngl. If the purchases are done with emotions, then the cocky and arrogant behavior is what would not make me want to buy something.

@diamonddetails9445 Месяц назад

Absolutely. Or, "if you have to ask, You can't afford it"!! Period 🎉🎉🎉

@cobaltblue5523 Год назад

People will want to argue for no reason especially rich people.

@cxa011500 Год назад

Brilliant 👏🏽 😆

@Thevoiceoverguy6 Год назад

Love it

@powerfullyhappy5226 9 месяцев назад

The price is the price!

@ryansanchez5434 Год назад

This guy knows what he is doing and telling 100000 true!!! Don't ever try to prove anything it's just your costs PERIOD! DO NOT LET THEM SET YOUR COSTS! 😊

@jacobmiller7684 2 месяца назад

This is the funniest video I've seen in years. IM WEAK 😂😂 if this is a parody you've absolutely nailed it, mate!

@brandonm1726 8 дней назад

You're welcome. Boss. 💣

@Dreamaster2012 Год назад

Another perfect loop!

@enaridzal4485 9 месяцев назад

Amazing!!!

@NinPossible Месяц назад

Very helpful! ❤

@wiy_annguyen Год назад

Love this

@SterlingCoker Год назад

Always on point, proof is in the portfolio

@abdurahmzohidov5687 Месяц назад

The most genious way overcoming price objection

@Abunm Год назад

I love Chris! I love thefutur!

@wealthfluency Год назад

It is what it is.

@kevivtawar7716 Год назад

Golden advice! "Thats what my customers pay me"

@nelyazavgorodneva5214 Год назад

That’s a good advice in any situation in life,don’t proof anything and be confident

@TarikDaniel Год назад

This only works if you have a sellers market or customers that don't care. Otherwise your potential customers will look for other opportunities.

@bangwithcamino693 Год назад

Some customers just want to haggle. They want a lower price. There are way too many clients on a global scale and away too many projects in this digital age to not have an abundance mindset. If they want to leave, fine. It is better to have 1 $10,000 project than to have 10 $1,000 projects, especially if the effort and quality are the same.

@andrewd2003 Год назад

Let them go somewhere else I say my business offers premium services and raising the bar for services I'm the area If they don't like it they can go to a shotty business down the road..

@atharrys Месяц назад

Good stuff, thanks Chris Do!

@randomness8819 Год назад

I wish I could be mentored by this gentleman.

@ronmcintyre9290 Год назад

Perfect answer

@DavidGoods Год назад

Absolutely loved this

@tripleS88 Месяц назад

I’ve recently subscribed to your channel. I think there’s value in your thinking about backing your own value. But being able to defend that value is important too. Avoiding the difficult discussion can come off as arrogant and may harm the relationship. I think there is a nuance between justifying/vindicating your price versus explaining/substantiating it. I think there is a way to handle this professionally. If the conversation turns to a defensive one then you know that the client has different values and may not be a good fit for your services. But one can’t avoid the discussion entirely in my view.

@-441- Месяц назад

Thank you!!

@oscardiaz6215 Год назад

Good. This is an excellent advise even for MSPs (Managed Service Providers)

@silentkiller4091 Год назад

Anybody who asks why does it costs so much already wants to works with you else they won't even bother to ask. One of my clients recently asked me to share the cost breakup. I asked him would he be comfortable to share how much is he earning? I got the project.

@judimunro9279 8 месяцев назад

I just used the “it’s policy” the other day for why I would not take less than the posted price at an event. Man wanted his kid (4-5 yrs old) to ‘bargain’ with me to get my price down. I said it’s not happening because it’s our policy not to ever change prices at a show. I “bargained” with her to take the free thing which doesn’t draw my inventory down. I offer this free thing to a few customers per show especially if we are slow, never if busy. Anyway he demanded to know why my policy wasn’t written down and posted at our event! Funny thing about a business policy. It’s the evidence of the stuff you can’t actually see. The free thing was worth it to me to move them along. Thank you Chris Do! I definitely appreciated this polite dismissal. I’m glad I had practiced it in my head beforehand, so I was prepared.

@AtomicPixel Год назад

So simple. So true. Thx uncle Chris!

@Damm_Santa Год назад

say that in a pitch in shark tank. they Will love it

@kyrstinmcmaster4485 Год назад

very smart...even though the potential client is the one who asked, once they get your long-winded answer about the number of staff, offices, cost of living in your area, etc. they are thinking "I don't want to have to pay for all of these things that don't apply to me, I only want to pay for a good result." so you're better off not putting these things in their heads!

@ormavisuals 11 месяцев назад

I love his work

@lucasmondino9402 Год назад

If you can’t articulate your cost and value then you shouldn’t be in sales. Value of rep is one of the most important parts to sales presentations

@GORILLA_PIMP 11 месяцев назад

Boom

@charlottematou5896 7 месяцев назад

Well, freelancers usually don't think of themselves as working "in sales".

@ashishdeurkar9828 10 месяцев назад

❤❤

@WEAREPONDSTARS 3 месяца назад

Thanks this is what i needed to be told

@Pewdieguey Год назад

Chris da man..😱😱🚀🚀🙂

@LogicalCanadian Год назад

Took this attitude with a customer, just told today that we lost the business. $2000000 a year, for 5 years. This only works on transactional one-time sales.

@vincentpaula3184 Год назад

Knowing WHEN to use this is probably more important than the technique itself

@ilamalihilustan22 Год назад

@@vincentpaula3184 how do you even know when to use it

@Colin_Butler 10 месяцев назад

Invaluable advice

@jxnklly Год назад

@p1xelatedYT Год назад

This man is the truth

@jonhenning Год назад

We provide a premium service. Or when is the last time you received a premium service for a discount price? What are they going to say?

@celissewillis9399 10 месяцев назад

I've been in sales since I was 17; in person, over the phone & online. I'm now 39 & have been watching your shorts for a couple months now, (I think,lol!)... You always have such great tips, methods & perspectives! Also, the way you project your confidence is not overly egotistical. A lot of sales coaches out there have massive egos - I could name a few, but I won't do that here - & you have a sort of confident humility that just shines through. Kind of cute too, I'm not going to lie, lol

@beebrewdigital 11 месяцев назад

On fire 🔥

@Sankofalocs Год назад

This was timely, I needed this gentle reminder! Thank you.

@Hondalover3000 Год назад

Instead of me saying "it's policy." I would probably say something like, what I am charging you is the industry rate and what you will receive for that is a high quality product/service that is viable and, or durable.

@thefutur Год назад

and then how do you respond to: what if it's not high quality?

@Hondalover3000 Год назад

@@thefutur I could probably say that, generally, people do have different perceptions as to what a high quality product/service is. However, you are being charged for the very best of efforts, time, and care (high quality) that will be generated to help you with your business needs.

@vincentpaula3184 Год назад

High quality is subjective so the moment you try to answer that, you've already lost. This technique seems to work well in conjunction to other things you'll need to pull it off consistently (it won't work all the time) - Having consitent lead pipeline so you're not desperate for the sale and CAN afford to walk away -Having a portfolio that establishes you as a top tier in your field Those are just 2 things I could think of that would be needed to pull this off consistently.

@Hondalover3000 Год назад

@@vincentpaula3184 Naturally!

@sub.owen.create 11 месяцев назад

❤ this…

@3Diest Год назад

awesome! I loved the confidence!

@michaelmode Год назад

Boom! 💣 💥

@kevin_nv Год назад

You the best, I've learnt so much from you over the years.

@vspatmx7458 11 месяцев назад

I prefer a humbler approach. " my quality needs longer hours and more expensive teamwork And if u find some one who can match my quality at a cheaper rate then u shud go with that person " I do wish you all the best.

@tomkoolman Год назад

That's a good one.

@morgannesbitt Год назад

This is so good!!

@nimeshkumar9564 Год назад

Awesome

@manushag9803 11 месяцев назад

superb

@conansredbowtie Год назад

"That's what my customers pay me." If they try to bargain after that, then they're the ones who have to prove something.

@DonatelloLabouche Месяц назад

IT'S POLICY! YEASSSSS!

@petergriffinson1907 Месяц назад

It terrible when the person is bad at their job but has this type of confidence 😂

@MFH_Publishers Год назад

Thanks

@motivationmoneywellness Год назад

This is powerful

@TheProcessDesign Год назад

You’re welcome!

@Tatenak Год назад

I don't see what the big deal is about letting people know that the product's value is justified through the understanding of the logistics.

@Marxman1917 Год назад

its a big deal if you are a professional scammer like this guy

@FreakyShirley 11 месяцев назад

Nailed it

@aditidhopate Год назад

This is really big learning lesson for sure 🙌🏻🙌🏻 because this happens a lot that we always try to explain how we are worth to charge more. May be because of less confidence or self doubt 😔 but this is really very helpful to look worthy, confident and expert 🙏🏻🙏🏻🙌🏻🙌🏻