My ﬁve biggest PRICING mistakes, when preparing a proposal for a client.
Many a time, we come across the potential clients who request a proposal from us, to get a better understanding as for how we charge, considering that most of these clients want to understand what they are paying for, before hiring us.
In today’s blog, I’ll like to share ﬁve of the challenges that I have to deal with while preparing a proposal for a potential client most of the time.
1. The ﬁrst question that you should ask: Do you have a budget? In my experience, most potential clients answer is, “No,” you tell me what you charge.” If you can, gently try to have them answer. I usually get an answer by mentioning a crazy number; most of the time they correct me by saying, “Are you insane?” Then they give me a number they had in mind. Most of the time, this number is in low-ball.
Lesson learned: If you have no Idea of how much they want to spend, you are in danger of giving them a proposal that is too high.
2. Quite a few potential clients want a proposal with an exact pricing before hiring you, except, the problem is how you can give anyone a proposal with an exact pricing when you have not yet designed the concept for the job?
Lesson learned: Prepare your proposal, by giving the ranges. For example, your Bridal bouquet cost could be anywhere from $250,00 to $750.00, depending on what they like. Just one word of caution; Make sure that lower number is real because most clients would only remember the lower price.
3. Be aware of the clients that are shopping around. Some times, these clients have already decided, whom they’ll like to hire. However, these particular clients are in want of several proposals so that they can negotiate the pricing with the chosen vendor.
Lesson learned: Once more if you can, give your proposal listing ranges of cost.
4. Be extremely careful when your proposal is in the low-ball as compared to the others on the market.
Lesson learned: A potential bride recently told me that she received a proposal that was way too low, and she gathered that this vendor did not know what they were doing.
5. Be extremely careful when your proposals seem too high as compared to other vendors on the market.
Lesson learned: The problem with creating a factual proposal is that in all honesty, we have to list every single Item, which the client is responsible for to pay because I do believe in the Transparency in my pricing. However, too much detail could also scare them away.
Besides all, I usually list the following in the proposal to avoid any issues from re-occurring among myself and my client:
A. The client needs to pay for all transportation because decor and ﬂowers do not transport themselves magically.
B. The client needs to pay for all of the assistants that are setting up the day of the event.
C. The client needs to pay for the cost of the breakdown.
D. The Client has to pay for the cost for the dumpster. Many a time, there is lots of garbage after each event, especially with the level of our events. And most venues do not have the facilities to dispose of extra garbage.
Finally, giving a proposal is an art and the ﬁrst step towards making the sale happen. Whenever possible, make sure you do not send it, without taking the time to carefully explain either in person or by phone, every single item, on each line in hope for the best.
Please give us your opinion if you also encounter, any of the above issues while giving a proposal.