Mistakes Make Magic

027: MMM – How to Talk About Money in Business

January 17, 2018

I’m Catherine.
A New Orleans based wedding photographer and educator. We are excited you are here and cannot wait to connect with you!.
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Once you have your creative endeavor down, whether you are an incredible artist, photographer, writer, designer, architect, etc, and you have decided that you want to make this creative passion your means of income. You get all of your products and services mapped out in your mind, and then the question comes: “How much does this cost?”  

No matter where you are in your creative journey, whether you are 10 years in or just starting out, I hope today’s podcast can help you speak more freely and with more confidence about your pricing. The topic of money is always a bit uncomfortable, which is exactly why we are addressing this today!

Never say the numbers out loud: 

When it comes to delivering pricing, do not say the price out loud. If it is in person, write your pricing out on a designed sheet of paper printed nicely for their review. I have potential clients call and ask for pricing information over the phone. One of the biggest mistakes that I used to make, is feel like if someone called me over the phone that I had to give them my pricing over the phone, but that is just not true. If someone pushes for me to give them pricing over the phone, I simply say that the pricing depends on what they want and rather than misquoting them over the phone, I would love to send them the full pricing guide for review. When prices are written down, not only is there a more professional feel and finality to it, but also it leaves less room for negotiation. 

Talk less about pricing and more about value: 

When you are in a client meeting, the topic of budget is going to come up. Whether it is said out loud, or thought about in the back of the client’s mind, everyone has a budget. Your job is to talk more about value, because keep in mind that everyone wants to know what they are going to be receiving in exchange for their financial investment. Although I still acknowledge client’s budgets, I am now phrasing conversations around what they want. My goal as a business owner is to figure out what is going to make my client happy. If they are saying they want to spend a certain amount of money and what they want is less than that amount, so be it. But often times, clients do spend more when they understand the value of what they are purchasing.  

Be confident in your pricing: 

When I first opened my office, pricing was the hardest thing for me because I am really not a pushy sales person. I would rather people be happy and not regret their financial decisions. I want others to be confident in their decisions and as a result I need to be confident in mine. When you are structuring your pricing you need to create a pricing structure that you believe in. A few things that you should do in order to price yourself are know what you are spending, understand your taxation, be aware of your skills level and familiarize yourself with the market. This type of research will help you to price yourself, and in turn you will feel more confident knowing why you priced yourself this way.   

Provide detailed descriptions and product imagery: 

If you are selling anything in an online capacity, this one is for you. Even if you are service based and sending out pricing digitally, this one is also for you. The more detailed descriptions and the more product imagery you can provide, the fewer questions potential clients will have and easier they can decide whether or not they will invest. Make the information that you are providing clear and easy to understand. On average I spend approximately 30 minutes to an hour for each initial consultation. By the time it gets to that point, I want my bookings to be at around 95%! In other words, I am okay with 5% of those clients not booking but, any more than that…I need to do better. By the time someone schedules a consult with me, I want them to be a) looking for that one last bit of affirmation and b) asking me how to move forward.

Try to get an idea of their budget:

I know this can be an awkward question to ask someone, but as long as you are not asking it with ill intentions you should try to find out what their budget is. For me, I try to get this information as early as their initial questionnaire. Knowing a potential client’s budget gives you something to go off of and it is not to say that it cannot change. In fact, often times people do spend over their initial budget when they understand the value of what they are purchasing, but it is always a good thing to know. If a client is not willing to share their budget that is okay too because they may not know, or may not want to share. In that case, you can get a feel of where they are by discussing what they are looking for in terms of value and final product instead.   

Stand behind what you believe in: 

One of the most common questions I am asked is if I will remove taxation in exchange for cash payments. In other words, if they pay me cash then I will not claim the money and in return give them a discount. At some point in your business you will most likely be asked some tough questions. The best thing you can do is be prepared for the questions and have a response written out in your mind! When someone asks if they can pay cash for a discount, I simply respond by letting them know that I accept cash, check or credit card. Because they are all recorded as income and all forms of payment that will require me to remit taxes, I unfortunately cannot provide discounts on the total. I have never had anyone push further, and if they did I would simply stand firm in my beliefs. 

When someone asks for a discount…say you will think about it 

On the same thought of potential clients asking for you to bend on your prices, I can assure you that you will have clients ask for discounts. And, I am 100% okay with this! However, if you do not offer discounts that is okay too! Everyone has to respect one another for their positions and beliefs. What I would suggest if you do not want to offer discounts, is to have a response prepared for when you are asked the question. Discounts are tough and it is absolutely okay to say you need some time to think on it. I have taken up to three days in the past to decide whether or not I would provide a discount, or how to handle certain situations. The worst thing you can do is rush into responding and then regret your words.  

Handle all conversations via email (including follow up to phone conversations) 

Often times in the early stages of a booking I am communicating with clients either via skype or phone. Because things tend to get lost in the shuffle, I will always recap a conversation or make a note for myself once the phone call has ended. Sometimes it can take a client up to 6 weeks to book and think about how much goes on in your brain in a 6 week period. Taking notes, or emailing recaps of your conversation is SUCH a great and necessary habit.  

Know your prices by heart 

I host a lot of consultations. They have taken place while driving, on a walk or even at a location where I am without a good internet connection. I would suggest familiarizing yourself with your pricing, so much so that if you had a meeting scheduled you could talk about everything without even glancing at your pricing sheet. Not only will this make you sound more confident and knowledgeable, but it will also free you to do other things like go for a walk while you chat with your inquiring client. Being unsure of your pricing (even if it is simply not being sure of what is included) can make you sound unsure of what you are pricing! You do not want someone to misinterpret your uncertainty as you being uncertain or doubtful of what you are charging. Know your prices and deliver them without skipping a beat! 

I hope this podcast has served as helpful to you! If you are loving what you are hearing, do me a favor and screenshoot this episode to share on your instagram or facebook account. This podcast has truly been a labor of love and hearing from each of you makes all the effort worth while! And remember that even in regards to pricing, you might mess up… but do not stress because Mistakes Make Magic. 

SPONSORS:
Showit – User-Friendly Web Design Platform: Use code MAGIC for 10% off your subscription!
Black River Imaging High Quality Online Print Site: Use code MAGIC for 20% off your order!

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