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The following article was published in our article directory on October 21, 2017.
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How to Banish Lower Rates When You Use The Art Of The Discount

Article Category: Advice

Author Name: Linda Clay

More often than not, as a service provider or coach, at some point you'll hear the words .. "that's sounds awesome, I wish I could, but I can't afford it!" when a potential client responses to one of your proposal.

It happens to all of us. And, trust me, it will happen more than once!

How will you react?

The initial reaction is automatic, for both service providers and coaches, it's to lower their rate.

You justify it by telling yourself .. she really needs my help. Then you take it one step further and think – Plus, it's good karma and I'll get pay back later when she talks about it with her friends and refers business to me.

Sound familiar?

By using this approach, what do you end up with? MMMM, Maybe, but not necessarily everytime, you end up with a client who takes up WAY too much of your time, for less money than you deserve.

The end result? You end up resentful and questioning why you aren't earning the living you know you are capable of.

Does this ring a bell?

From this very moment on – make yourself this promise .. You will never again lower your rates to appeal to a client.

When you lower your rates, you are devaluing your services. It makes the client less motivate and less likely to actually do the work or follow through.

Most of all and even worse .. it makes you feel terrible later.

It doesn't mean you can never offer special deals. But you want to change how you offer those 'special' deals.

"Never, ever suggest they don't have to pay you. What they pay for, they'll value. What they get for free, they'll take for granted, and then demand as a right. Hold them up for all the market will bear." – Lois McMaster Bujold

Look at it from this point of view:

If your coaching package includes:

One 45-minute call per month.
1 email per day.
An in-person meeting per quarter.
And 1 mastermind retreat per year.

And your potential client tells you that they aren't able to afford your asking price of $1,000 per month, instead of reducing your price for them, you offer up a reduction of the price ,.. and the package.

What you will offer now will include everything BUT THE mastermind retreat. Or everything BUT THE in-person meeting each quarter.

The difference between the two approaches is simple .. you haven't lowered your rates so far that you feel used, yet at the same time, you've been able to work out a plan that she can afford.

It's a totally WIN-WIN for both of you.

The wonderful thing about this technique is it's works with any type of coach or service provider. The only exception would be if you were strictly charging by the hour.

If you are charging by the hour, you'll need to take a look at how you can reduce the number of hours you invest into the project or task, yet still give value.

Here's a basic example – If you offer four one-hour calls with you client, change your plan to include only two calls and email follow-ups. You're not removing any value, she'll still get plenty but you'll end up freeing up some of your time by asking for email questions rather than blocks of time on the phone.

When you're asked again to reduce your rates for any package or rate you offer, DON'T PANIC, instead take a look how you can reduce the work you'll be doing.

Finally, you won't ever have to feel like you're being taken advantage of again and you are still offering your clients great value and they still are receiving great service.

All in all, it's a win on both sides!

"Price is what you pay. Value is what you get." – Warren Buffett

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