How to Talk About Price or Budget Using Price Bracketing

you will be surprised how quickly you can get your rate up you will be smashing through ceilings that you didn't even know that you can get through [Music] you've got to say a price before you show it that's why I want to talk about it upfront verbally and if it's not gonna work I want to know right now Jose asked for his budget what you want to do is you want to say big round numbers and you want to give them a couple of numbers it's called price bracketing so Joe what do you do again all right you're a developer okay so how much would it cost to do a standard web site from you without knowing more particulars yes that we're looking maybe 10 to 20,000 ok web site yeah excellent delivery by the way 10 to 20,000 somewhere and you know you did a great job is that how you normally talk to your clients well now I'm gonna talk to so what we're gonna use big round numbers and what we want to do is we don't want to be messing around it could be 10,000 it could be 50 it could be 200 I don't know let's get into this and you're listening for the reaction that's what I'm doing it's like sonar you bounce the sound out you see how far the wall is when they don't fall out of their chair at 200 you know where your budgets coming in at right and I will even say that I'm like okay because I know I know like a client cannot afford me because you know why they're the owner and the founder if the owner and founder calls me I know it's not gonna work I already know that too small of a company okay so usually what I say to them is I'm gonna say a number it's gonna shock you are you sitting down they're like yes I know that you asked us to design a logo for $15,000 my strategy for me starts at 30 to 50 and that doesn't even come with the logo is that something gonna be able to afford there no okay all right let me try and figure out something else for you that doesn't involve us okay that make sense why you guys giggle ego over there I don't who said I want the client 100% no I really do I'm a genuine human being I love helping clients they'll come back you'll be surprised when you genuinely help people you know what's happening the law of reciprocity you want to reciprocate so you might know someone who can't afford this and you'll say I had this wonderful conversation with this robotic patient dude you might want to give him a call because he's a straight stand-up guy he'll tell you like the way it is that's why I have relationships that have lasted more than 20 years some of them come back and here's the cool thing this is like the karma boomerang you throw it out sometimes when it comes back it comes to back really big and it's amazing that's why my network works for me you ever have people that have worked with you before who are on the streets trying to sell you for you who talk about you in ways that would make you blush that's what some of our clients do for us and that's what you want so you want to do big numbers okay so joe said this so it's almost as if he looked at my deck before hand look at what he said and compare it to this based on what we've discussed pretty much what joe said right thus far similar projects have cost between this amount and this amount so three hundred two hundred fifty thousand dollars and then I fall up with a question does that budget range work for you he just did it with a nice smile at the end okay go ahead and then you you bring so in the past you would say things like fifty to a hundred thousand but lately I've noticed you've been you reversed enough yes why is that it's due to the law of anchoring right when I say the bigger number first they get stuck on the bigger number it's weird it's counterintuitive to say the bigger number first just try it see what happens okay say the bigger number first pause let them absorb that number and they say the second number oh I don't know projects like this probably somewhere between 300 and 150,000 does that work for you now when they want to pay you 150 they're gonna think that's a bargain but prior to that moment in time Jo's only ever charged $10,000 you will be surprised how quickly you can get your rate up you will be smashing through ceilings that you Neve --n know that you could get through so you say then I'm bigger no mercy I'm going to tell you the answer and that's because you're gonna anchor hot you want to anchor really high that's how anchors work don't anchor anywhere near your number so the only thing I would give to Joe is if he's normally charging 10k do not start at 10 to 20 start 30 to 60 those are good numbers and then what you want to do is you want to address any buyer resistance in the moment don't build a bid so he says 30 to $60,000 mr. and mrs. client and their and the radio goes silent cocaine is this did I lose connection with you are you guys all right there wow that's a lot of money Joe what does Joe say back to that well we generally do this type of work for 60,000 so you got to give me a bracket here Joe it killed between 60 and 80 okay between 60 and 80 wow that's a lot of money but I think you'll really see the value and what we're gonna gonna provide for you on this project I'm not even sure whatever value could deliver is worth that to be honest well what what price would work for you okay well how did Joe screw up already Levi tell us how did he screw up ready he sold you nuts was to sell me you see you cannot sell me you're really smooth before okay so here's what we do you ready let's flip it yeah all right I'll be the vendor and you be the client all right Joe based on what we talked so far I think it's gonna be somewhere between 60 to $30,000 does that work for you oh I think that's way out of our budget I'm sorry to hear that how much can you afford maybe 45 45 hmm let's see here you know what maybe I overthought this when we're talking I got really excited I kind of thought about what's possible and maybe I'm building you something you don't need let me think about this so if I come back to you with a proposal for about 50 K are you okay with that I think so okay yeah so I'll send you something for 15 we'll see what happens okay let me kind of trim and kind of figure this thing out okay we're done you see what happened there did I sell you anything no I just address what you said right that's it [Music] okay all right well I'll do really hard push right you get out there and you do it okay man thank you take care

Channel: The Futur

Views: 220,457

Rating: 4.9822617 out of 5

Keywords: disrupt design education, business of design, how to, how to deal with a cheap client, how to price anchor, sales training, sales tip, ignore the price anchor, business tips, value based pricing, pricing creativity, how much can I charge, how much does design cost, price anchoring, how to negotiate a lowball offer, anchoring bias, negotiation, price bracketing, How to Say the price, blair enns, win without pitching

Id: 87CPZdh6FIc

Length: 7min 10sec (430 seconds)

Published: Thu Oct 18 2018