Establishing new pricing is a two-fold process: determining if you are going to have an increase (or decrease) in pricing and services as well as what type of strategy you wish to employ. Of course, it all makes sense to you– but the big boss level comes when you have to present it to a client.
All the thoughts begin to go through your head:
…“This is way too much.”
…”I wonder what so-and-so is charging for this”
…”My pricing and contracts are going to be too hard to understand”
You’re assuming scenarios that haven’t even happened yet, which will have an effect on how you present and stand by your pricing. You literally talk yourself out of a sale or into a discount.
Communicating your pricing in a way that is not only receptive but effective comes down to the three T’s: tone, timing, and telling.
Tone – If the conversation has been casual the entire time, there’s no need to get ultra-formal when it comes to discussing money. The same person they fell in love with needs to be the same person delivering the price tag. Never assume that the client does not have enough money to pay for their event or your services. This type of disdain does have a tendency to drip through your commentary. What they can afford is none of your business– your pricing is. Speak with unwavering confidence without placing a vocal question mark after stating your price. We’re not out here asking for permission to charge our full value. Tell a friend.
Time – When it is time to talk dollars, make sure it makes sense (see what I did there? 😉). You can place your pricing at the beginning of your consult, the middle, or the end. The risk of placing the price talk at the beginning is that a sticker-shocked couple may tone out everything else you say. In the middle or at the end allows your couples to understand how much value you will bring to their process and correlate it with a figure.
Tell – Say your price and stop. Hard stop. We’re not here to convince. We’re here to reinforce why we are worth what we are asking for the price provided. Here is where you will want to reiterate the value of the exchange. Yes, the exchange. For example– in exchange for a triple caramel cloud macchiato, I give Starbucks $6. In exchange for the amazing services and products you provide, the client gives you XYZ. But in addition to the services, you can detail the amenities, systems, and experience you offer while providing that service. (Now is also a great time to detail how you will need to be paid and when. Some clients to need to be reassured that everything is not due all at once).
You want to make sure you communicate your pricing in a way that is confident, valuable, and warm. So you know what that means, right? Practice. Practice doesn’t just mean perfect– practice means profit. Being able to anticipate questions and objections allows you to guide your couples through your sales process easily and explain your pricing effectively.
- Have your payment installments ready. Be prepared to explain what the retainer or deposit will be, its refundability and when the remaining payments are due. Even without specific due dates, knowing how the cost is broken down will be helpful to your clients.
- Mention the availability of pricing. If your proposals or pricing expires after a certain amount of time or if a client is contacting you prior to an annual increase, be sure to mention this so they can make a time-appropriate decision.
- Know who you’re talking to. Clients absorb pricing information differently. Some clients want to see things line itemed while others are content with seeing the total price. Make sure you are showing consistency across the board with price listing and any adjustments requested.