Sales - To Reveal Price Before Phone Call?

[Utopia]

Recently, I reached out to a whole bunch of businesses who needed new websites. I got a lead who I don't know exactly how to proceed with, wanted to get some more experienced members opinion.

ME: First message was my initial introduction

HIM: His response was yes, it needs work. He says he is interested in my thoughts and the costs to bring it up to date.

ME: I respond back that I understand that, in addition what else would you want in a website? I also loosely propose a call.

HIM: He responds that We don't like taking online inquiries because people will try to just price compare. And he wants a simple way to upload photos.

ME: I affirm that we can do those and I propose a call.

HIM: Can you show me examples of work you have done?

ME: I show him three sites we have done and one that I suggest modeling his site after. I even show screenshots and give a back end shot of what it would look like for him to upload a photo.

His response to this was exactly this:

"Yes, I like this approach. What is a likely fee for your helping us with these revisions?"

Is this guy just trying to get the cheapest site, should I just tell him a price now? I want to sell value and maybe it is not there to sell. How would you guys handle a response to this?

 

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[ALC]

I don't understand, this guy want a new website, he clearly asking for a price, give him.
If he's not able to pay use your commercial skills to turn that situation into your advantage or let him see somewhere else, don't lose time.

 

[Andy Black]

Recently, I reached out to a whole bunch of businesses who needed new websites. I got a lead who I don't know exactly how to proceed with, wanted to get some more experienced members opinion.

ME: First message was my initial introduction

HIM: His response was yes, it needs work. He says he is interested in my thoughts and the costs to bring it up to date.

ME: I respond back that I understand that, in addition what else would you want in a website? I also loosely propose a call.

HIM: He responds that We don't like taking online inquiries because people will try to just price compare. And he wants a simple way to upload photos.

ME: I affirm that we can do those and I propose a call.

HIM: Can you show me examples of work you have done?

ME: I show him three sites we have done and one that I suggest modeling his site after. I even show screenshots and give a back end shot of what it would look like for him to upload a photo.

His response to this was exactly this:

"Yes, I like this approach. What is a likely fee for your helping us with these revisions?"

Is this guy just trying to get the cheapest site, should I just tell him a price now? I want to sell value and maybe it is not there to sell. How would you guys handle a response to this?

He wants a "likely fee", not necessarily the cheapest.

He's also after a likely fee for something specific (that you showed him). If he had asked for the cost without knowing what it was for, then I'd see that as a red flag. (As in "Cost for what?")

Get on a call with him. Say you'll get a better idea of the cost once you've a better idea of what needs done.

Or don't say anything about cost and just say you'd love to have a chat and learn more about his business and how you can help him.

If I have to give a price before a call then it's normally a range. Because it *is* a range until I have a better idea of what needs done, the value it brings to the client, and whether I even want to work with them.

 

[Kung Fu Steve]

Recently, I reached out to a whole bunch of businesses who needed new websites. I got a lead who I don't know exactly how to proceed with, wanted to get some more experienced members opinion.

ME: First message was my initial introduction

HIM: His response was yes, it needs work. He says he is interested in my thoughts and the costs to bring it up to date.

ME: I respond back that I understand that, in addition what else would you want in a website? I also loosely propose a call.

HIM: He responds that We don't like taking online inquiries because people will try to just price compare. And he wants a simple way to upload photos.

ME: I affirm that we can do those and I propose a call.

HIM: Can you show me examples of work you have done?

ME: I show him three sites we have done and one that I suggest modeling his site after. I even show screenshots and give a back end shot of what it would look like for him to upload a photo.

His response to this was exactly this:

"Yes, I like this approach. What is a likely fee for your helping us with these revisions?"

Is this guy just trying to get the cheapest site, should I just tell him a price now? I want to sell value and maybe it is not there to sell. How would you guys handle a response to this?

Any time I look at a challenge like this I blame the system first, the person second.

We could talk about your sales skills but in all honesty why not create an environment where he qualifies himself to you instead of the other way around?

It could be done by an inquiry form, a standard IM "opt-in" form, a basic price list on the site with a "buy now" -- a million ways I guess...

What percentage of your business do you receive from these chats?

 

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[thedanshea]

What would be the benefit of discussing price before value?

Let's say you give him a number, what is he going to do with that number?

Unless the product you are selling is a commodity (which web development services is not) never discuss price until value is built.

Until value is built whatever price you give will seem too high.

 

[Utopia]

What would be the benefit of discussing price before value?

Let's say you give him a number, what is he going to do with that number?

Unless the product you are selling is a commodity (which web development services is not) never discuss price until value is built.

Until value is built whatever price you give will seem too high.

These were along the lines that I was thinking. To be honest, I don't believe enough value has been built up in the prospects eyes for him to go forward with a few thousand dollar site.

He wants a "likely fee", not necessarily the cheapest.

He's also after a likely fee for something specific (that you showed him). If he had asked for the cost without knowing what it was for, then I'd see that as a red flag. (As in "Cost for what?")

Get on a call with him. Say you'll get a better idea of the cost once you've a better idea of what needs done.

Or don't say anything about cost and just say you'd love to have a chat and learn more about his business and how you can help him.

If I have to give a price before a call then it's normally a range. Because it *is* a range until I have a better idea of what needs done, the value it brings to the client, and whether I even want to work with them.

I like this approach the best. What I showed him, I thought would build up some value and what I think he will do when seeing just a price, is think of the service as just a commodity and save it for reference against other web designers.

To be honest, I wish there was more value to be added, but he doesn't want an online site to field more online inquiries "because they are just price shopping" Kinda like what I feel he might do. While we are along the tracks a little way and getting new customers from a new site would quickly replace his investment, he's not so much interested in that.

Maybe it just comes down to how much he is willing to pay for something that looks nice and has the ability for him to upload pictures simply? Or maybe I could find something else, I agree a call would be best to do that, but is the value even enough for him to get there?

Thanks for the replies.

 

[MJ DeMarco]

but is the value even enough for him to get there?

Depends. What seems like rocket science to him, might sound like pie to you. That's the value. He's buying your knowledge and experience.

 

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[biophase]

I always ask for price upfront because it is a waste of both of our times. For example, I talked to this CPA for a while and I knew her price was going to be high. But damn $13,000 to do my yearly taxes! Holy shit. I was expecting $2000-$3000. So we both wasted a half hour.

I also hate those sales calls that won't talk price until they meet with you. They always want to set up an appointment. They ask what I'm currently paying. I tell them. Then they say that they are competitive and would like to come to your office to go over all the features. Which really means, shit we charge more than what he's paying, let's bullshit him into thinking we provide better value. I always call bullshit on them. I say, if you are competitive then just tell me your price. If they say they haven't fully calculated it yet, I say, then how do you know that you are competitive?

So to answer your question, if I was that guy and I asked what the fee was and you couldn't give me a range, I'd just hang up or walk away.

 

[ZF Lee]

I always ask for price upfront because it is a waste of both of our times. For example, I talked to this CPA for a while and I knew her price was going to be high. But damn $13,000 to do my yearly taxes! Holy shit. I was expecting $2000-$3000. So we both wasted a half hour.

I also hate those sales calls that won't talk price until they meet with you. They always want to set up an appointment. They ask what I'm currently paying. I tell them. Then they say that they are competitive and would like to come to your office to go over all the features. Which really means, shit we charge more than what he's paying, let's bullshit him into thinking we provide better value. I always call bullshit on them. I say, if you are competitive then just tell me your price. If they say they haven't fully calculated it yet, I say, then how do you know that you are competitive?

So to answer your question, if I was that guy and I asked what the fee was and you couldn't give me a range, I'd just hang up or walk away.

I can confirm this!
I am not afraid to discuss prices up-front. And usually it's a good indicator on whether both parties are willing to be serious.

I mean, if you are so shaky about discussing prices, then why bother going into business?

 

[Utopia]

I can confirm this!
I am not afraid to discuss prices up-front. And usually it's a good indicator on whether both parties are willing to be serious.

I mean, if you are so shaky about discussing prices, then why bother going into business?

It's not shaky about discussing prices, but a trek in being better in selling.

 

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[Process]

Just have two things to help you with:

1. Normally by the time they are asking for price, I've highlighted the core issue holding them back(sales). From there I've gotten them to explain to me the implications of that problem. And any ripple effects from that.

Like: what will happen if they have to lay off staff and pay unemployment for an empty desk? Will their competitor keep gobbling up their market? Is the whole business at risk?

From that inner hole, they are begging for me to help them. The cost of not taking action is higher than it is for working with me.

(This is my overall process taken from SPIN Selling, which was recommended by either @Fox or @SinisterLex ...)

2. But for your situation you could try:

For x, y, z like we discussed, the range to give you ____ is $X,XXX - $XX,XXX. But until I dive deeper into your unique situation there is no binding price. Then, you should dig into their core issue and the horrible impact it is and will have on their life.

Also: You can check out @SinisterLex 's YouTube channel for more information. I'd highly implore you to as a matter of fact. You can take his advice and tweak it.

 

[Fox]

You should really talk about price till you know who I am dealing with.
This doesn't mean who much money they got but rather knowing what is best for them.

Sometimes you can work this out before you call but other times you will have to ask a few questions to get in the ball park.
Imagine you walk into a doctors office and tell him you need to get better. If he gave you a price up front then maybe its way too much or too little > he has no idea what help you need.

So when I am working with a client I am trying to figure out what a site is worth to them.
Not so I can pump my prices but rather so I know what is a good amount for them to invest on getting better results.

Let's take two vague examples:

- A personal trainer who helps a few dozen clients a week at $50 an hour
- A company who provide cranes at $10,000 a week

Both want new clients and but have more to expand

The personal trainer shouldn't spend more than a few hundred or at the max 1-3k.
It would depend on how he is finding new clients and what his sales approach is but those would be the upper figures.
I wouldn't want to charge more unless there was a rare outliner case where a website could help a lot and it made sense to invest more.

The crane company though could benefit a lot from a greta website.
Again it will depend on their sales system and plan for finding new clients but if they line up right then a new website could help a lot.
A great site that can convert viewers into clients will pay itself off fast. The exact price will depend on a lot of little factors though. Maybe 5k - 20k.

So to answer your question...
- What is the site worth to them?
- How much will it help?
- Can you deliver?
- Does it fit into a sales system that will actually use the site?
- How fast could they expect to get results (and pay back their money)

Over time you will learn to be able to guess quite accurately very fast what is a good price for your clients. In the beginning though you will need to investigate more though and see how things are set up. If you are really unsure of your services and what value you can offer then keep the prices low until you have a better feel for things. Think more in hourly rates (but you don't have to say that to them) until you are sure you are adding value.

Hope that helps.

 

[Utopia]

The crane company though could benefit a lot from a greta website.
Again it will depend on their sales system and plan for finding new clients but if they line up right then a new website could help a lot.
A great site that can convert viewers into clients will pay itself off fast. The exact price will depend on a lot of little factors though. Maybe 5k - 20k.

So to answer your question...
- What is the site worth to them?
- How much will it help?
- Can you deliver?
- Does it fit into a sales system that will actually use the site?
- How fast could they expect to get results (and pay back their money)

Over time you will learn to be able to guess quite accurately very fast what is a good price for your clients. In the beginning though you will need to investigate more though and see how things are set up. If you are really unsure of your services and what value you can offer then keep the prices low until you have a better feel for things. Think more in hourly rates (but you don't have to say that to them) until you are sure you are adding value.

Hope that helps.

This is along the exact lines that I was thinking. What I didn't know however, was many of the local construction companies have an aversion to new online business. So while I would use a new site to bring in more business, they have found that in their business they are seeing more time wasters and price shoppers that don't want to do business (at least in this guy and a few other contractors experience who I have reached out to). The ironic part being that I think he was the price shopper here haha.

For this man, the value isn't necessarily in making the money back on new jobs. At least he doesn't see it that way. Not sure exactly how he would equate having a new website to be valuable for him. Maybe just not thinking about it would be valuable? Maybe he just wants to see a place where he can see all his photos where they are neatly displayed on one nice public domain.

But I'm not really sure, it would be a task in understanding more of what this man does value and thus I'm not sure the value is quite there for him in the way I understand how he views it in regards to a website.

I emailed back a general range, a little lower than I would like to go and just a bit higher in the range than I would charge. This to cover both bases - higher money = higher value and I want a cheaper website because I don't see much value in such a thing.

 

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