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About the Author
Brendon Sinclair
Brendon is an Australian-based marketing consultant with business interests across a range of industries. He runs Tailored Consulting, is very good at marketing, and not so good at golf. Brendon wrote SitePoint's The Web Design Business Kit.
The Big No - How To Turn Rejections into Sales
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So you put on your suit, arrived on time, and made an irresistible pitch (accompanied by a very reasonable quote). You knocked the socks off your potential client, and left their office knowing they loved you.
Dutifully, you called them as arranged to see what they'd decided to do with the project...
"Thanks, we appreciate your time... but we just don't have the money to be able go ahead with this right now."
You're shocked. You know you impressed them, and you've quoted a rock-bottom price as it is. You want the job, but you can't go any lower on the quote. What do you do?
When 'No' Means 'Yes'
Firstly, congratulations on getting the "No"! At least you're now in the position to get a "Yes". A "No" is much better than sitting at home twiddling your thumbs.
My business builds Websites, and I'd say that 90% of clients will mention at some stage during the project's initial discussions that they have very little, or no money. Why? Because everyone wants a good deal. The simple fact is that most potential clients think if they tell you they have no money, you'll be less likely to over-quote for the job.
But let's not be too cynical! Let's take a look at what the prospect said as though it's the truth: they genuinely can't afford the cost of the project.
If this is what the client honestly believes, you have two basic options:
- Lower your price
- Don't lower your price
I'll give you a strategy for both courses of action.
Option 1: Lower Your Price
Don't lower your price unless you take something of value away from the prospect. For example, tell them:
"To meet your budget requirements and still deliver a site of the highest quality, we'll need to remove this bit of functionality here. This particular part isn't critical to your business objectives," etc.
You really do need to know what their budget is here, otherwise you could be taking another blind stab in the dark and wasting your time. So send them a quick email along the lines of:
"Dear Bill,Thank you so much for the opportunity to present a proposal for the development of your Website. I did appreciate your kind words - we take great pride in providing a quality service and I'm thrilled you recognised that.
The business you have is ideally suited to the Web and I want to assist you taking full advantage of that. Would you possibly be able to provide me with an idea of your budget so I can revisit my quote to see if we can provide a great solution at the right price?"
Option 2: Don't Lower Your Price
Review the project and see if you can't break it into phases. Create a proposal that outlines the functionality you'll include in each phase of the project, and a proposed timeline for delivery of the first (and maybe some subsequent) part/s. Then present this to your client, discussing in detail the implementation of Phase 1 to emphasise the lower initial budget outlay, and the corresponding benefits.
When we quote on jobs, we often provide 2 quotes: one at the lower end of the spectrum, and one with the lot. The client almost always takes the higher quote as they hate to think they're missing out on anything!
Justifying The Quote
We've considered what your options are if the client genuinely can't afford your quoted price. But there are a range of other reasons why the client might reject your quote.
For instance, you may not have successfully demonstrated the full value of the site to your potential client. Maybe you met with them to take project brief, and then faxed or emailed through the quote. You really do need to give yourself the best possible chance of success when you're quoting for a job -- and that means being in person to make the pitch. With lots of preparation!
Ensure nothing has changed since the initial brief
Make sure both you and the client know exactly what the project entails, and can justify the inclusion of each type of functionality. Confusion now will translate to big problems later -- if you get that far! Being clear ensuring you understand exactly what the client needs will make justifying your quote a lot easier.
Practice responses to objections
For example:
Client: "That's a lot more than I intended to spend."
Developer: "Yes, I understand. How much did you intend to spend?"
Action: Change the structure of the project and price to meet the client's needs.
Client: "It's too expensive."
Developer: "Well, Mr. Smith, I agree it isn't cheap. However if you consider the total package that you will receive, it's a very reasonable quote. Our graphics will enhance your image, etc. And I'm sure you wouldn't want to compromise on quality, would you?"
Client: "Joe Blow Designs are cheaper."
Developer: "Yes, and they have a good reputation. The reason we are sometimes a little more expensive is that we ensure the very best database/graphics/etc. Our employees are highly trained and experienced. Our clients want the best. You wouldn't want to compromise on quality, would you?"