saving entire buttloads of time [idgaf 013]

Holy terrible-subject-line Reader,

My friend Cass was telling me about this meeting she was heading to. It was with a designer and marketing person, to advise on a pitch they were making for a prospect. It included copy, which is Cass's specialty (she's really good at it too, I highly recommend her newsletter), hence why she was tagging along.

And I just had flashbacks fam.

Earlier in my career, I'd do this stuff all the time. I'd meet with my copywriter and marketing friends to plan a "pitch" to a prospective client, or meet with anyone who had ANY interest in getting a website. We'd talk and talk and talk, and work out a solution, and ultimately send off a proposal for a service.

And while sometimes I'd land a new client, many times I'd never hear from the prospect again.

I had no idea why people were ghosting after getting the proposal, when it was clear that I'd be able to fix all their shit.

I only found when I followed up and a guy told me "dude I was thinking it was gonna be a grand or two at most" (thanks Lee).

Lee (like many others before him) was suffering from an old fashioned case of sticker shock, cause he had no idea what the price was going to be until getting the proposal - and it was wayyy higher than he expected.

Unlike many others before him, Lee was comfortable enough to tell me that instead of just avoiding me, making him a legend even if he didn't get me to do his website.

Pretty simple concept.

Everyone has an idea of what something is worth, but that number can be different for everyone.

For example, if I say "how much does CRM software cost" you could say $30 a month, you could say $300 a month, you could say $3,000 a month (rip). It all depends on what your experience is, and those experiences shape your perceived value.

The sticker shock happens cause the actual price is higher than expected price (which was based on perceived value).

The unfortunate consequence is your good buddy Nick Gulic spending an hour or two talking to someone about their website, another hour or so preparing a proposal for a new website, probably another hour all up following up on that proposal..... all for someone who was never going to pay that much anyway. Times that by a good 5 or so similarly "bad" leads a month... yeah not a fun time.

The sticker shock issue isn't really a thing for me anymore, and that's cause I do three things.

I will make it clear during the sales meeting, so they can let me know if they think it's too much. Do not wait for the proposal, cause you're not there to answer questions or explain anything.

Now, if they say it's too much, I can ask why and find out how they got to their perceived value. And thennnn I can point out why their perceived value is stupid, and help guide them to the actual value.

Either they will see my point, or they won't.

But if they don't, guess who doesn't have to do a proposal anymore? (me, duh)

Before booking a sales meeting, I always have a little "vibe check" chat. Mostly to get an idea of the project, and make sure it's someone I'd be willing to work with.

One thing I always do during these calls? I'll give them some general pricing ideas and ask if that's aligned with their budgets.

The worst thing that happens is they call me insane and bail. And that's awesome, cause then I don't even have to waste time having a sales meeting.

But if they have no issue with it, then the chance of pricing being a problem later is wayyyyyy lower.

Just fyi - this is part of "qualifying a lead" and it's a pretty good thing to do from a sales perspective.

If you give pricing during the sales meeting, and also confirm ranges and budgets before the sales meeting, you're going to be saving a fair amount of time.

But what saves even more is not even hearing from leads that think you're too expensive.

I do this by putting pricing on my website. It doesn't need to be an exact price if that's too hard to manage, but it does need to be something that gives people a fair idea of how much they'll be paying.

Now yes, typically that does mean you get less people enquiring overall, but the people you do get are a better fit for you, and way less likely to ghost you cause you were expensive. You stop talking to leads that would never be clients.

This step is where the entire buttloads of time gets saved.

When you're running a business, time can sometimes feel like the thing you're lacking the most. And sooooo many people will slurp up as much of your time as they can when it's free. Gets very different when they have to put their wallet where their mouth is.

So, like I said to Cass, try not to invest time until you know there's an actual budget for your service.

And now, imagine I put some super witty line to end the newsletter with that made you go "wow this guy is so smart."

✌️

Cowabunga,Nick Gulic

ps. Thanks Cass for telling me to write about this!