A Lesson on Cost vs. Price and How To Overcome Objections
We all know how it happens - especially those of you who design custom products - it gets down to it and the client says, “that’s too much”; or “we can get a better price somewhere else.” Sound familiar?
The next time that happens, (and it will) I want you to think, “is it is price they're concerned about or the cost?” A natural response would probably be to ask, “what’s the difference?”
keep reading below...
A few years ago, I wanted to buy a nice computer bag for myself. The one I was currently using, I bought at TJMaxx for $50. It was worn out and honestly looked cheap. So, I started searching for something to meet my needs and help me organize all of my electronics, note pad, pens, and planner. (<--- …passion point for organization and pain point for needing a bag to hold it all …from the Your Client and Call Pillar!)
I remember looking at a Dagne Dover bag (swoon!). They are $265. I thought to myself, “good Lord, that’s a lot for a computer bag!” And continued my search.
So, walking through the airport with my new cheap bag from TJMaxx (that I spent $50 on again) I felt the strap snap off, and my bag and all it’s contents hit the floor in the terminal.
My face turned blood red with embarrassment. I walked around carrying that bag like a baby for the next leg of my trip, after I picked my pride up off the floor with it.
I probably could have taken it somewhere to get fixed, but I wasn’t sure it was even worth it since it was a cheap bag anyway. It probably would have cost me another $50 to do that too. I could have bought one in the airport, but they know you’d have to be desperate, so it would have cost me double. Plus, it still would have been cheap.
I use it all the time and haul it, along everything I need for work, everywhere. It still looks just like new. I will probably have it forever. All the cheap bags I bought over the years far outweighed the price of the better bag.
So, you see, even though the price of the first bag I purchased was less, the cost was much greater.
I know the money part of your creative business is probably the most frustrating for a lot of it.
You have to get this part of your business right, because you can do all the marketing, all the sales, and all the planning in the world, but you have to be able to make a profit so you can reach those crazy dreams of yours.
I would rather have you value your time with us, have you leave with a wealth of knowledge and all the answers and support you’ll ever need, instead of apologize for not living up to your expectations forever.
I hope you’ll join us in Phoenix. Space is very limited.