It’s my opinion :
Most clients are like myself, they’ll pay when they know what they are paying for.
The question that we should ask ourselves, as vendors, when working on a proposal for a potential client; how we can expect our clients to pay our prices when our clients do not know what they are paying for in detail?
I recently presented an estimate to an enthusiastic client, and the first thing that she did was to look at the bottom line on the proposal. Well, she almost fainted. The client who I am referring to reacted in the same manner, I would have if I were in her shoes.
I do not like to discuss proposal relating to the money with my clients; I always think that it is best to have someone else do this job, allowing myself to focus on design only. But this young lady insisted that I explain to her in detail.
I began to explain to my curious client, how we arrived at the price in the proposal. As mentioned earlier, we at Preston Bailey Design , always try to be as transparent as one can with our clients.
I explained to my curious client, how our company arrived at the price listed at the bottomline on the proposal. We always try to be as transparent as one can with our clients.
First , I began to explain pricing on the flowers, the peonies that she loved were one of the most expensive flowers on the market.
Second , I explain to her in detail, how much we markup to make a profit at Preston Bailey Design. After all, I am in the business to make money and put all my effort to make her understand our company’s pricing structure.
Third , I discussed as Why there is a charge for the labor for the day of the wedding set up; how many people we needed to set up her wedding, and how much each helper would cost.
Suffice to say, at the end of three hours of open and upfront discussion about our pricing structure, our client was not happy with the final amount, but she understood enough to pay for it.
It’s my opinion, that transparency in how you price to make a profit is the best policy with most clients.
Do you think, it is a good idea to explain your markup system to your clients upfront?