One of the most sensitive conversations you will ever have with a client is when you need to make changes to your pricing, writes Kat Mitchell
Many financial and professional services businesses have been known to put off changes to service pricing for longer than they should out of fear of how existing clients will react. However, if you communicate clearly and openly with your clients you may be surprised how supportive they are of the changes.
You need to communicate what you are going to do, when you and going to do it, and how you are going to do it.
No matter what pricing method you chose, someone will think it is wrong. However, if you communicate openly with your clients throughout the process and they will see that you are listening to their concerns.
Be prepared to explain the way you work with your clients, why you are making changes to your pricing, and demonstrate how you add value.
What questions are you likely to be asked?
You need to provide your team with good answers to the questions that they are likely to be asked by clients.
Your staff can be your best asset here. Not only can they help support the communications process directly, but they can also be a fount of knowledge when it comes to anticipating the questions the clients they work with on a day to day basis are likely to ask.
It is important to make them feel involved in the process of the change and to make sure they are equipped to answer any questions in a knowledgeable and confident manner.
Questions your team may face are likely to include:
- Why are you doing this now?
- How will this impact the way you work with us?
- Will you be applying this pricing strategy to all clients?
- Why can’t I stay with the old pricing method?
- Isn’t there some kind of rule that requires you to keep track of your time? (a common misnomer)
What about changes mid-job?
Any changes to final pricing are particularly sensitive when the specification of a project changes before it is complete, or if using time-based billing and you encounter a problem that will end up costing the client more in fees than expected.
When it comes to making any changes mid project, it is wise to communicate in good time, sensitively, and be prepared for a lot of awkward questions.
You can never be overprepared.
We can help
If in doubt discuss with a good communications professional.
Communications professionals can act as a word smith, as well as providing broader advice on how to communicate any potentially sensitive changes.
We can help make sure your communications are as clear as can be, in order to help avoid misunderstandings damaging your relationships with clients.
Next in the series
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Next time I will be giving some basic tips for professional and financial services businesses about how to communicate with the media.
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