Don’t you hate it when customers ask for your “best” price?
Like they should get special pricing compared to your other clients?
We’ve all had meetings where we discuss a customer’s needs and wants, and how we can provide for those. The conversation goes great until we talk numbers and they ask, “What’s your best price?”
No matter how frustrating this question is, people will always ask it.
Early in my selling career, I really debated over how to handle this question since it kept coming up with my prospects. As I worked to figure out the best response, I asked myself:
- Should I talk about a reasonable profit for what I do?
- Do they want to know how low I’m willing to go?
- If I’m willing to go lower than my quote, where does that end?
This is a classic ‘How long is a piece of string?’ dilemma.
Here’s what I found: There is no such thing as a best price.
Let’s dig into what customers are really asking… and how you should respond.
Start with A Budget
Ideally, the “best price” is the price that works for both you and the customer. It’s a win-win.
But many customers think they need to win more than you need to win. Somehow, in their minds, that’s how the deal should work.
How do we offer the best deal without compromising the worth of our service?
We start with their budget. The best deal comes when customers are transparent about how much they want to spend.
Nobody asks you for your best price without a budget in mind. Otherwise, how would they gauge what a good price is?
In my experience, about 90% of your buyers have a budget estimate before they start a conversation with you about your service. Even if they’ve never bought your type of service before, they have a concept of what it’s worth. When they ask for the “best price,” they’re hoping to be pleasantly surprised by getting it for less than they thought.
Most of the time, the client is wrong about their price point. They’ve aimed too low — your service is worth more than they estimated. So when you give them a reasonable quote, they’re disappointed.
We circumnavigate this when start our conversation by talking about the customer’s budget. It helps the buyer maximize their purchasing power and lets us maximize the value of what we offer.
How to Maximize Value — for You and Your Customers
Before you start figuring out what to offer your customer, ask them for a budget. Then you can give them a reasonable amount of services for their price point rather than guessing how much the customer might be willing to spend.
When they provide a finite number, you can set what you offer to meet the value of that number. It’s unrealistic to think you’re magically going to guess your customers’ ideal price. And if you do, you walk away wondering, “Did I leave money on the table? Should I hold back services because I asked too little?”
Knowing the budget actually changes your mindset in dealing with the customer. When I’m guessing to match a number, I hold back. I begin to withhold services to accommodate a lower price.
When I know the number, I give more. When you start with a budget, you work with a giving mentality, offering services up to a certain price.
And with this mindset, we actually tend to overdeliver, leaving both you and customer very satisfied in the end.
How To Find the Best Deal For Everyone
The myth of the best price is that there isn’t one. Focus on the best deal instead of the best price.
We can’t blame customers for wanting a good deal. We all like the feeling of getting our money’s worth in a transaction. But if you want best deal, tell me what you’re willing to spend and I’ll tell you what I can do for that amount. You may end up with more value than you expected.
When you meet with customers, start by asking, “What’s your budget?” That’s the conversation we need to have with new clients. No need to waste time backpedaling and negotiating what to cut to drop the price.
Go straight to the heart of the matter.
There is no best price — there’s only what you’re willing to spend and what I’m willing to do for it. If we can maximize those two things, we’re going to have a great relationship.
Do you have a best price story? Share it in the comments below!