When I first hung out my shingle and began my service-based business I was so excited. Going out of my own, having no-one to answer to other than myself, and being able to support my clients the way I wanted was far more appealing to me than working from 9 to 5 for someone else. However that excitement was short-lived and soon turned to dread when the phone rang and I was greeted with “Hi, I’d like to enquire about your services. So, how much do you charge?”
Back in the early days I responded by explaining my fees to the caller, which I realise now was not the best approach. The reason for this is that as soon as the caller hears the cost they’ll immediately make up their minds (based on their possibly misinformed understanding of the services you provide) about whether they want to work with you.
It’s important to realise that people often make a purchase decision based on emotion – so by answering their question right at the beginning of the conversation you miss the opportunity to build that ‘emotional’ connection, nor can you build credibility, value and desire to work with you.
If this is something you dread too and like me (those many years ago) you respond by stating your prices, you may be missing out on numerous business opportunities.
Here are three simple yet powerful steps that will support you in not only responding to that dreaded question but will also help you to build trust and rapport with your prospect – both vital elements in any sales process.
Step 1: Defer the Question:
Firstly, you need to let the client feel as if you’re not avoiding their question so that they believe their request is important to you, which of course it is. Do this by responding with:
“I’ll be happy to answer your question (name). To ensure that I’m able to recommend the best solution to support you – is it ok if I ask you a few questions?”
This response is vital and will allow you to put their request on hold while you continue to find out important information about the problem/situation with which they are faced. You’ll also have the opportunity to position yourself and your services as a must-have solution to their problems.
Step 2: Research, Reflect and Build Rapport
Next, it’s important to find out about the problems they are experiencing and that prompted them to make contact with you.
Ask the following question, stop talking and continue to listen closely to their story particularly in relation to the words they use to describe their situation and the frustration they are feeling.
“So what is it that prompted you to call me today? What’s going on for you at the moment?”
After the client shares their story and continues to speak it’s important to reflect the information by repeating their words and their emotions back to them throughout the conversation. Doing this also helps to build rapport and trust as you continue to confirm a genuine interest in what they are saying.
For instance: “… I can certainly understand your frustration at spending over $4,000 on your advertisement and only receiving a handful of responses… I agree – it would have been terribly disappointing.”
Step 3: Switch Gear & Show Them the Results
Now is the time to ease the client out of their frustration and begin to create the ideal situation they desire, while building anticipation and the belief that this is achievable for them too, which of course it is!
Create an environment that allows them to feel that they are not alone and demonstrate how you’ve been able to help other people overcome similar problems.
“Well, you’ve come to the right place (name), and you’re certainly not the only person who has had to face this issue. Many of the clients I work with have experienced the exact same things you’re currently facing and have felt the exact same frustration you are currently feeling.”
“In fact one of the clients prior to working with me spent thousands of dollars on advertising and unfortunately didn’t receive anywhere near the response she had hoped for. She’s in my [name] program and in the last few months is generating some amazing results. In the past month alone she’s increased her database by 40%, she’s doubled the number of enquiries she’s receiving, and she’s been able to increase the number of people investing in her programs, all while cutting her advertising costs by 50%. She’s thrilled with the results. From what you’ve told me about your background I’m confident that you’ll be able to generate similar results… What would it mean to you if you increased your database by 40%, doubled your enquiries and reduced your advertising costs by 50% (name)?”
Then stop talking and listen as your client visualises the impact this type of result would have on their business…
You’ll obviously have to tweak specific details in steps two and three to suit the clients you work with and the services you offer, however using these three simple yet powerful steps will enable you to create an opportunity to build rapport and credibility with your prospect and allow further opportunity for ongoing conversation about your services and how you can support them.
Is this helpful? Pop me a note here on my blog. I’d love to hear from you!
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This strategy is very similar to the well accepted theory of B2B Marketing, which goes by the name of SPIN – Situation, Problem, Implication, Need Payoff
I like what you did here, by making it money oriented, you made it more relevant.
Hi Ankit, thanks for stopping by and taking the time to comment! Really appreciate it!
I personally used to fear selling, however this process seemed more authentic to my style and has enabled me to have that 'sales' conversation without seeming to be too salesy.
Hopefully other readers will find it helpful too! Best, Annemarie
It can be hard to discuss fees. One of my main issues is that what you describe, which I think most people would agree is a good way to do it, would not work for me if I was the customer. If I call and ask what someone charges, I want to hear just one thing – the price. If I wanted other information, I’d ask for that first. If I’m on a sales page, I find the price before I read even a word and if the price isn’t clearly stated there’s no sale. Price is the first, most important thing to me in a buying decision and any attempt to steer the conversation otherwise feels like the person is trying to lead me away from the information I really want. If the fee is more than I’m willing to spend there is no reason to even spend 10 seconds discussing it further. So my conflict is that what is most likely the best practice is not what I like as a customer and so it’s hard for me to do. I prefer to just state my fees up front and let the conversation unfold from there.
Michele, I would probably have said the exact same thing as you. I’m in a hurry, I have a few people I am considering and am going through the process of my decision making.
However, then I meet someone who has used the above steps AND before I know it, I’ve decided to invest in their services. Why? Because the person took the time to get to know me. They were interested in finding out more about what I was going through, what sort of issues I was having, my goals and dreams. In that conversation I felt really heard AND that I could get the sense that this person knew what I was experiencing and offered the solutions that would help me.
I didn’t feel like they were avoiding the question; in fact, people who ‘assume’ they know what I need and then just throw out a price to me without even asking me – or they tell me what they think I need – I’d probably not invest in their services.
I once read a sales book that said when speaking to a prospect, you need to be speaking 20% of the time and the prospect 80% of the time. Never quote your price up front – you don’t really know what they person really needs. Take the time to build the relationship first; show them you care (which of course you do); and if they feel comfortable (and you recognize they would be a good fit) – fantastic!
Hi Annemarie,
Great lessons in this post. I have a question. In this tough economy, many people have had to reinvent themselves and start businesses in areas that do not necessarily match their training or experience. How do you suggest someone approach the price question when they have just started their business and don’t really have that many case studies to use as examples for the prospect?
Thanks for taking the time to answer my question.
Sherry Nouraini recently posted..Unicorns and Rainbow: The most unique and valuable aspect of social media
Hi Sherry, this is a really good question. When working with clients, we do plan out a strategy, and of course one of the most important things is to develop social proof and evidence of your work and outcomes. In some cases people bring with them skills and strengths from previous work situations, which can continue to add value in their new role. We often tend to disregard previous experience as irrelevant however this experience has made you who you are today, and you can therefore showcase some of the successes you generated into your current role.
For instance, when I first started working with entrepreneurs and helping them re-brand themselves so that they can stand out in the market place, get noticed, hired and paid what they’re worth – I brought a lot of my previous experience working with executives. Some of these executives added tens of thousands of dollars to their annual salary (in fact one client increased his salary package by 70%). Is this irrelevant to entrepreneurs – no way. I use similar skills when working with entrepreneurs as I did with my executive clients – so my current entrepreneurial clients can add tens of thousands of dollars (and more) to their bottom line as well.
Hope that gives you some ideas. Remember, the first person you need to sell to is yourself. Once you really believe and see that you can add value to your prospects bottom line (or life/business etc), then you need to stand up and confidently portray this to them.
Stay inspired!
Annemarie, appreciate the points you bring up here. As you & I discussed in one of the Ambitious Entrepreneur sessions, it’s important to build the relationship first; touch on emotions and show prospects you understand and care about the issue(s) they’re facing.
Then, if they feel understood and believe you have the solution to their problem, they’ll be comfortable & confident about investing their time & money with you.
Thanks.
~Debra
Debra Jason recently posted..When It Comes To Internet Marketing, What Color is Your Hat?
Hi Debra, so very true. People who don’t really understand this could be loosing out on so many opportunities, yet they’re turning people away because they don’t understand this. Yes, we had so much fun on the show didn’t we. You shared some great advice. Here’s the link if people want to go and check it out: http://webtalkradio.net/2011/10/03/ambitious-entrepreneur-%e2%80%93-copyrighting-how-to-write-compelling-content-that-converts-prospects-into-customers/
Anne Marie, this was an excellent article, a great how to, step by step, with great example script to pattern. Thank you.
Thanks Joel, glad you found the steps helpful!
Annemarie,
Excellent points you’ve made — Both in your post and in the comments area.
I’ve struggled with the price question, and as I’ve become more developed and entrenched in this “new” industry, I find it easier and easier to approach in a way that I’m positioning myself.
But always honing, working. You are incredibly insightful, Annemarie!!
~Keri
Thanks Keri – glad you found the article and comments helpful. It’s certainly something all business owners need to get comfortable with, otherwise it will be difficult to steadily enroll prospects into programs/packages.