Embarrassed to Discuss Your Prices? Seven common reasons we can’t talk about fees and how to overcome them

Last week, a wonderfully skilled electrician installed a new light fixture for us. He was competent, courteous and efficient. He answered all our questions simply, with skill and eloquence.

I was amazed when I asked him how much we owed him — and his embarrassed reply was, “Gee, is $50 okay?”

With the high quality of work he’d done and the amount of time he put into it, I would have expected to pay double or triple that amount. His resistance to naming his price reminded me of my small business clients who have the same problem.

All entrepreneurs feel fear at some point, including attorneys, consultants, coaches, and writers. It’s a natural part of starting or growing your business. It can be uncomfortable to take risks, to name your price, and tell a prospective customer that you want to work with them.

Roberto Goizueta, the late chairman of Coca-Cola, said, “If you take risks, you may still fail; but if you do not take risks, you will surely fail. The greatest risk of all is to do nothing.” Put this mantra into your head: Risk equals reward.

So, what’s the problem?

I’ve discovered seven common reasons why we’re afraid to discuss our fees:

1. Do you feel your fees are too high?
2. Do you think you are not qualified or experienced enough to charge that rate?
3. Are you afraid of rejection? (Or, possibly, afraid of acceptance, which will mean you will have to perform?)
4. Are you afraid the prospect will raise an objection to the fee, and you won’t know how to reply?
5. Are you not sure the value your products and services provide are needed by your prospective customers, or the quality isn’t high enough?
6. Are you afraid to take risks?
7. Are you generally uncomfortable talking about money?

Where do these thoughts and beliefs come from?

Is it part of your personality or is this a behavior you learned from your past experience or culture? Sometimes, when we get rejected by a prospective customer, it’s uncomfortable having the next conversation — what if it happens again? In many families and cultures, it’s taboo to talk about money or to ask to be paid.

While it might be personally beneficial to look inside yourself for the reasons why you act this way, it’s also important to get unstuck by using techniques that help you move forward, such as:

• Have a good pricing strategy. Research the average fees for your type of business to know if your prices align with expectations. If your experience warrants it, increase your pricing to reflect your higher skills, knowledge, and experience. If you’re unsure how to create a pricing strategy, research it online or talk with a small business consultant or mentor.
• Before discussing prices with a prospective customer, establish that the prospective customer needs your services or products. You’ll feel more comfortable discussing your fees if you know the prospective customer truly wants and needs what you offer. Ask deep questions to see if their problem and your solution are a good match.

Here are some more tips for dealing with fees:

• Put your fees on your website and brochure. This way, prospects will know your fees before the sales conversation begins. If you customize your fees based on a proposal, a ballpark set of fees on your site will help prospects understand what they’ll get for what they pay. “Packages begin at $___” will eliminate tire-kickers and set expectations in advance.
• Practice makes perfect. Be transparent and tell the prospect the options for your services or products, any quantity discounts you offer, and how payment is delivered. Practice saying this over and over again until the words and phrases slip comfortably from your mouth. “I have Program A and Program B. The fee for Program A is ___ and the fee for Program B is ___.”
• Act confidently when delivering your fees. Don’t downplay your fees. State your fees, then shut up. Don’t make excuses for your fees, or ramble on about them. Look directly at the prospect while delivering your fees.
• Don’t automatically offer discounts. I’ve seen this a million times — the business owner names their prices and immediately talks about the discounts they offer! This tells the prospect that your fees are soft and that they’re negotiable. Instead, state your fees and options, then ask them which package is right for them.
• Act “as if.” How would an experienced person in your industry act, when discussing her fees? Act as if you are that person and your confidence will increase with each conversation.
• Get training. If you’re uncomfortable with the whole sales process, get sales training. By attending a class, you’ll learn different ways of saying the same thing, and you’re bound to find a way that’s right for you. (Look for a class that allows you to practice out loud in front of the teacher and receive feedback.)
• Refer out. If the prospect really can’t afford your fees and you can’t afford to offer a discount, refer that prospect to someplace else. Say, “If you can’t afford my fees, you can try these online referral services where you might find someone in your price range,” or say something like, “If you’re on a budget, you might want to do this yourself. Here’s a good book or workshop on the topic.”

Talking about your prices can be uncomfortable. But with practice and persistence, and a willingness to overcome your fears, you can begin to have comfortable conversations with your prospective customers.

“There is only one thing that makes a dream impossible to achieve: the fear of failure.” –Paulo Coelho, The Alchemist