posted
ok, enough about pricing for a bit... let's talk about selling and negotiating.
i'm a lousy sign maker (right now). i'm getting better. someday i may be as good as some of you are now.
however,
i'm a terriffic salesman. here's one thing i've learned that might help you get what your ought to get for your work. i'm sure some of you others can add more tips.
1. state a price, then shut your mouth.
"Well, i figure that will cost $278.35." the customer will say, "gee, that's a lot... i don't think i can afford that. i wasn't planning on spending that much... blah blah blah. DO NOT CHANGE YOUR PRICE at this point. wait for the customer to make a different offer. just keep your mouth shut until they suggest a new price, or until they accept your price.
if he says "I'll take it for $250" then you can decide if you want to sell it that price. OR you can say "OK, how about $250 plus $28.35 in trade at your restaurant" or "OK, but at that price i'll have to make it a little smaller" or "OK, but at that price i'll have to use 5-year vinyl." or "OK, but at that price I'll have to fit it in behind some higher paying jobs -- can you wait an extra week?"
OR maybe he says "I can't pay that, what's the best you can do?". You say "278.35" (otherwise, you're just guessing at prices).
OR maybe he says "can you make it less?" then you say "What price did you have in mind? (then you get to go back to downsizing his order, since you've gotten him to set a price he's comfortable at).
If he says he's comfortable at a certain price ($250), then you can show him what you can provide at that price. Now you know what his price is, so you can make him happy by matching it... appropriately.
What if he can't/won't name a price? then he isn't ready to buy. or, he's already bought from somebody else, and he's fishing for a better price. either way, he doesn't want what YOU have to sell.
(you might want to pick up a copy of "You Can Negotiate Anything" -- you can often find copies at the used book stores since its been in print for a long time. If you can't, send me $12 and i'll send you a copy.
-------------------- :: Scooter Marriner :: :: Coyote Signs :: :: Oakland, CA :: :: still a beginner :: ::
Posts: 1356 | From: Oakland (and San Francisco) | Registered: Mar 2001
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posted
I find the best leverage against a price buster is the simple issue of "When". If they come back with a bust, I change the subject and start asking them when they need the work... Naturally, everyone wants it yesterday. They usually fall pretty fast in the sold line and at the original price.
The trick is to make certain you are negotiating with the decision maker and not the third base coach!
-------------------- Preston McCall 10305 Eby st. Overland Park, KS 66212 text: 5056607370
Posts: 1562 | From: Overland Park, KS | Registered: Nov 1998
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I have prepared a design for a large brewed soft drink manufacturer here and I am faced with the question of what to charge.
I think I'll charge what i want to charge and fight it out from there.
The problem we can often face is in determining the difference between "Percieved Value" and our good old "hourly rate"
So, how valuable is this new corporate branding to these people, I would say it's fairly high on account they are heavy exporters and no small fry by our standards.
So, i want to get a "little" more for this one than I would for your average Bakery for example, but I was a bit lost on how to negotiate my new pricing policy.
So thanks buddy,
Lettervillans to the rescue yet again.
RobC
[ February 11, 2002: Message edited by: Rob Clark ]
-------------------- Rob Clark Rob Clark Design 11 Lassig st Moore Park Queensland Australia 0741598092 Posts: 421 | From: Australia | Registered: May 1999
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posted
The most profitable approach that I recommend is by letting your client choose between you, you, and you!
I provide the client the option of choosing either the budget design, the value package, or the premium.
The majority chooses the value package. (Which by the way is the package that is most profitable to me.) By only offering one choice you are allowing your clients to choose between you and the competion. Let them choose between you, you, and you.
Also by educating your clients with all the benefits as to why they need you rather than the sign shop down the street will eliminate much of the price haggeling.
-------------------- Great White Signs Logan, Ohio
"All signs now come with new and improved vinyl." jimw@1067wwtl.com