Why Nickel & Diming Your Clients is Costing You Loyalty and Millions! 6 Goof-Proof Solutions for Pricing Your Projects Better
Last week, I texted a reminder to my cleaning lady to empty the dishwasher. Three hours later, she replied that it was done and that I now owed her an additional $5.00. My son quickly retorted that heck, he’ll do it for $4.00.Why charge your client for parking? Nickel and Diming doesn’t work. Click To Tweet
Of course, the issue is NOT emptying my dishwasher, but that she believes she is entitled to more dollars whereas I assumed flat fee meant flat fee; no additional charges for what I consider standard cleaning duties.
6 Ways to Price Better:
As you can see, “what we have here is failure to communicate” which often happens in business. To avoid pricing issues in your business, here are a few suggestions:
Create Flat Fee Pricing – I switched to this model years ago and it saved my sanity…and business. I don’t charge extra for emails, meeting, and phone calls. Not only did I get happier and more loyal clients, but my clients talked to me without fear of running up the meter. It also allows for easier budgeting and less documentation.Flat fee pricing boosts communication with clients. Click To Tweet
2. Define Project Parameters – In contracts, most of us list what’s included, but also noting what is not included is also helpful. For example, a web designer might note that design is included, but not Search Engine Optimization. Or that name creation is included, but not trademark view. In #contracts, list what’s included….and what’s not. Click To Tweet
3. List Consequences of Change – Let clients know that there are change fees or hourly fees if the project goes out of scope. My hubby calls this “scope creep.”
4. Identify What Constitutes Rush Charges – Printers have led the charge (literally) for charging for rush projects. This option may work you IF you inform your clients ahead of time.
5. Create Good Contracts and Letters of Agreement – Contracts do not have to be written by lawyers or include complicated legal language. Attorney Melody Kramer shares her wisdom with me on this webinar entitled The Easy, Breezy Guide To Contracts That Keep YOU Out Of Hot Water! (Just $9 with this code BREEZY)Webinar on EZ, Breezy Guide to Contracts just $9 with this code BREEZY http://bit.ly/EZContracts Click To Tweet
6. Talk to Your Clients – Many conflicts could be avoided with just a little direct communication. After all, the goal
The goal in working with your clients is to convert them into raving, happy fans. You want to feel good; they want to feel good. Surprising them with an invoice or extra charge without warning just turns the relationship on its head.
What do you do to keep happy clients?
PS: Yes, I stopped working with my cleaning lady and hired someone else; she empties the dishwasher without an extra charge.