The high cost of being Cheap - Mornington Peninsula Marketing
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The high cost of being Cheap

he client balked at her price.

The client’s problem was they weren’t booking enough appointments. Appointments led to on-going relationships. The relationships led to referrals which lead to new sales.

And a new sale was worth something: at least $50,000… each year. And they stayed for four years usually. Nice maths.

Yes, her price to fix their problem was high. Yet, the first year projected ROI was 78% with only one new company signing on.

But her client said “Your price is too high.”

“Instead of doing the full proposal, can you just do X for us? And we’ll pay you $5,000.”

She knows X won’t solve their problem. Not even close.

Of course, the client also shares he’s spoken to others, and they are willing to do the full project for half of her fee.

So her choice is: take the $5,000 project because…hey…it’s $5,000, knowing full well the outcome will not come even close to addressing his problem; or, say “No thanks. Your proposed solution will not work.”

Hard choice.

We’ve all found ourselves in this spot at least once (if only once, you’re pretty darn lucky…or stunningly talented).

What would you do?

Take the money that provides you with income, delivering what the client asked for, but doesn’t solve their problem or say “No, thank you?”

While we all know the latter delivers the right answer, the truth is many times we’ve just said, “Sure.”

Yet, cheap is actually pretty expensive.

Cheap makes the client feel like they are in action, yet it’s the wrong action. Agreeing to cheap enables the client to feel like they were a great negotiator, when in truth they just skinned themselves.

Cheap puts the you, as the provider, on the spot to deliver something you know won’t work, which I’m betting will create tension with your client. Agreeing to cheap that you are pretty positive won’t work damages your reputation.

Cheap in the long run actually becomes expensive for both the client, who must spend even more to make it right or live with a less-than-desirable outcome, and the provider, who might have to make it right on their own dime.

Why do you, as a master of what you do… not an expert or someone pretty skilled, but a real master… agree to delivering masterful solutions that solve client problems for cheap?

Masters charge master prices.

Live in your integrity. Solve the problem. Don’t just take the money because you could sure use $5,000. Or walk away.

In the end cheap is nothing but expensive.

 

(P.S. Oh, and then there’s this… if they want a cheap solution, maybe they weren’t your Ideal Customer in the first place.)