Are You Tired of Potential Clients Saying, ‘I Can’t Afford That’?

A commonly held belief in business is that if someone can’t afford your product, then you either need to make it cheaper or find a different customer. However, the truth is that Customers rarely make decisions based on price; they make decisions based on perceived value.

In order to have a successful business, it is critical that you learn how to articulate the value you provide. So how do you do that? I hear you ask. But how do you articulate this value? By fully understanding the problems your customers face. If you can confidently explain to them how your product or service solves their exact problem, they’re far more likely to spend with you.

So how do you articulate value?

The best way to demonstrate your value to your customers is through a story. Here is a recent real-life example to help demonstrate.  We recently ran out of gas at our home – bad news for our stove and water system (i.e. no hot showers). When we called our gas supplier to report the problem, they informed us that they would no longer be delivering gas to our property, as our gas connector was unsafe. A shock, given they had been delivering gas for over two years without a hiccup. We had no choice (or so we thought) but to change the placement of the bottles and the connection. A task that would have cost us thousands.

Before Duncan and I whipped out our credit card, we did our research, and we asked three local gasfitters to quote for the work. Here’s what they offered

Guy no. 1 quoted me $1,100:

-        He offered to do exactly what I asked of him - move our connection 10m towards the front of the property.

-        He offered no alternative solutions (although to be fair, I never asked for any)

-        Although he was happy to proceed with the work, he wasn't certain the work would satisfy our gas suppliers and that the new gas placement would be compliant.

-        His price seemed reasonable (at least to someone that knows nothing about gas and plumbing), but his uncertainty bothered me.

Verdict: If someone else could validate that Guy No. 1’s plan would fix our current gas problem, I'd probably accept this guy's quote.

Guy no. 2 quoted me $200 and alternatives:

-        A very personable seller, Guy No. 2 was very confident and presented a number of options to me.

-        One of his most memorable lines was: "I want to give you good advice, even if you don't choose to work with me, because that's what I would want if I didn't know anything about gas".  He suggested instead that it wasn't worth moving the connection, and it would make more sense to change the type of gas bottles we had. This is also greatly reduced the cost, to just $200.

-         He offered no formal quote, simply a verbal agreement.

Verdict: He could easily articulate the pros and cons of the two options. However, I was still hesitant: “could something that cheap really work?

Guy no. 3 offered VALUE:

-        He offered a smooth service from the outset.  I got a call from the receptionist - a wonderful lady who was extremely helpful. I received an automatic booking confirmation for the time someone would be coming to my house for a quote, and text message reminders before he arrived. When he did arrive, he was dressed immaculately and perfectly presented.  He had electronic proposals for me to review and accept before any work started.  

-        The biggest difference with guy no.3 compared to the other quoted services?  He was adamant he could provide a solution that worked for me and that was completely compliant.  He pointed out some risks that the others hadn't and he was able to refer me to a fantastic tradesman to fix other issues I had raised during our conversation.

-    He gave me two options: $1,700 to change the location and $800 if I wanted to simply change the type of bottles we used.

-        I agreed to the $800 option.  Although he wasn’t the cheapest option, guy number three, in my mind, represented the best value.

Verdict: Guy No. 3 represented the best value. He was professional, I was confident the work would be done to a high standard - and I’d have peace of mind knowing the work performed was compliant with gas standards.

As Warren Buffet famously said, “Price is what you pay. Value is what you get.”

What could you learn from Guy #3 with your own business? Are you like Guy no. 3 with your potential clients? Can you clearly articulate the value you provide to them through storytelling that builds trust and rapport?

It is vital to know what sets you apart from other similar providers of your service/product.   

I like to think that we, Iron Advisory, are such an example.  Although we offer accounting services, we don’t just offer a “one size fits all” tax and compliance shop. The value we provide is in our personalised support. What sets us apart is the time we spend getting to know you and your business. We also specialise in the Health & Fitness industry. We help you free up your time and become more profitable through a combination of looking at your business strategy and numbers.

If you need some help defining what sets you apart and articulating your value to your customers, drop us a line for a free consultation. And in doing so, you’ll minimise the possibility that a client says, “I can’t afford you”.