I recently spoke with a client who wants to develop a comprehensive care system, including payment, profiles, map searching, admin panels, ect. During our conversation, he mentioned that he has a ride-on mower because his lawn is too large and that he and his business partners pull in over £1million in tech sales a year. He clarified that while his industry is tech, they don’t actually build tech themselves.
Given this background, he needs someone to build a platform for his business. We put together a proposal with a reasonable rate, considering he mentioned having a small budget. However, he told us he spoke to some offshore companies that offered to do the entire project—design, build, and scale—for just £250. We obviously think this is a scam and quoted our standard rates, but he responded with concerns about his budget.
Why do clients do this!? Why do people keep trying to drive down the price, even when they’re clearly successful and can afford quality work? Is this a common issue?
Any advice on how to handle these situations would be greatly appreciated!
Hey chan, first off 250 sounds like they are trying to gague your reaction. Your expertise isn’t just in coding but in solving complex problems, which is your true value and super power! If you can present case studies where your pricing led to successful solutions. Or another approach is to try shifting the conversation from cost to return on investment (ROI).
Perhaps it was your proposal tone and the client’s personality type that mismatched? It’s not a great idea to try to force it. Eg., he is being firm and you’re being accomodating. I read somewhere about selling to different personality types and choosing to only work with a specific type. One that compliments you and your businss. There is a tone of information out there if you wish to look it up
Your client has big ideas but no understanding of how much things costs or why. For example the cost of making a new sneaker can be £4000-£12000. Cost of new design, testing, machines, pattern, workforce. But your client becomes angry because in the store they saw some mass produced shoe for only £50?
Hi chan, it’s not very common but it can and does happen. I would say don’t dewll on it, maybe the price offended you a little or you felt like you wasted your time. The way to handle it is to remain professional and to renegotiate. Kindly inform them that you can adjust the scope to reduce the budget but prices are set and fixed at the start of the year.
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