One of the biggest challenges in freelancing is the question “How can I charge more?”, because determining price of a service is easier said than done.
Most freelancers don’t have a steady income and a regular client base, so they’re willing to accept any client that comes their way with an offer and a gig! These clients will want to negotiate until the price is right for them.
Price objections are something very common and expected in freelancing. What’s not so common is overcoming them.
In this article, I want to show you 4 things you can do to get around those price objections along with the video version:
1. Target better businesses
Ask yourself, do the clients that you reach out to have the money to pay you? Are they able to find the money to pay you for your expensive service?
If the answer is “No”, then you talked with the wrong type of clients and I recommend reaching out to larger businesses.
If you’re selling to small businesses with a revenue of under 2 million, why not reach out to businesses with a revenue of 4-10 million?
2. Give a guarantee
Come up with an offer that will make it a no-brainer when they need to sign.
The guarantee we use at X27 when we sell cold email outreach is 10 meetings per month promised to clients, and if we don’t hit that mark in the next three months we will work for free until we do.
If for example you’re in the app development niche, it can be something like free bug fixing for two months or anything else that is within your control and not too stressful for you, but very helpful for the customers while justifying risk.
At 100% of their budget, clients want to know with over 100% certainty that you will deliver, and a solid guarantee is one of the easiest ways to do that.
3. Talk about ultra relevant case studies
Niching down to one specific industry is my recommendation if you want to grow your business. For instance, a lot of mobile app companies love finance or they love startups.
I would even recommend to niche even more and say something like “We only work with local banks that have between 5 and 25 branches.”
Once you niche down, the easiest way to charge more is to look at your past clients and pick the best ones to use them as a reference.
After you’ve pick your best clients, you can talk about ultra-relevant case studies.
For example, you approach another restaurant, but this time your pitch contains the websites you built for two dozen other restaurants and the ROI from each.
With this move, the closing rate is going to go up, and the price that you charge will go up as well.
4. Intro them to a client for a large testimonial
If you’ve just started your business you should work extremely hard on just one client and get as good of a testimonial as possible from them.
So when a prospect says “Oh these case studies are very good, but I still don’t think the price is worth it.” you can say something like “What if you talked to one of our past clients and see the results they got?”
The conversation between them should go really well, and your close rate should jump through the roof with whatever price you’re pitching them on.
And those were 4 ways to help your potential clients see the value in what you offer. Now that you have them, go out there and use them to increase your profits!