What to do and say when a client doesn’t want to pay

“Your fee is too expensive.”

It’s a phrase many in the business arena have heard multiple times, and for real estate agents, business development managers and property managers, it’s no different.

So what can you do when a prospect recites that dreaded phrase? 

In this YouTube video, Founder and CEO of The Futur, Chris Do, role plays what you can do and say to negotiate your fee upwards and do it successfully. 

In the video, Chris runs through a scenario with a potential client seeking a marketing video, but strategies he uses can be used in many sectors – even real estate.

Take a look!

Four simple steps to defending your fee

  • Establish value and ROI: When a client says your price is too high, try to demonstrate the potential value they’ll get from your service. Ask them about their desired outcomes, then extrapolate to how your service could offer a return on investment (ROI) that justifies your fee.
  • Question importance: Probe the client to find out how essential the service is for them. If it’s truly important, they’ll be more likely to consider a higher price for quality. If they’re hesitant, consider pointing out other areas where they are already spending significant money, thereby illustrating the incongruence in their valuation.
  • Offer alternatives: Provide different pricing options that might better align with the client’s budget or risk tolerance. For example, suggest a base fee with performance add-ons.
  • Be prepared to walk away: If the client insists on a low budget that would compromise the quality or efficacy of your work, make it clear that you’re prepared to decline the project. Remind them that it’s better not to undertake an important task if it’s not going to be done properly.

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