Handling Price Objections

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Permalink Reply by James Malone on February 28, 2009 at 5:02am

Andrea, first of all I think your suggested price range is well within the norm for our profession (depending on your geographical area of course-those in large urban centers have to charge more because everything else is more pricey). So feel comfortable that you are worth at the very least what you are charging and probably even more.

As for price objections I have found that it is worthwhile to take your time and give a really good phone consultation where you make the client feel you really understand their situation and build a positive sense of expecation before you ever meet. The person who continues to voice objections about the fee usually hasn't been sold on the idea that our services are going to work for them no matter what the cost.

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Permalink Reply by James Hazlerig - HypnosisAustin on February 28, 2009 at 7:29am

Hi, Andrea,

You can feel good about your nuts-n-bolts questions because there are two groups of hypnotists here: those who have insight into this and those who need insight into this.

I've noticed that most hypnotists go through the "I can't believe I'm getting paid so much to do this" stage. Practice stating your prices out loud with total confidence. :-)

Some folks with sales backgrounds will tell you that when someone asks for your prices, you should divert them into a conversation about the benefits and delay mentioning your price for as long as possible. That may work for them, but for me, it's a sure way to destroy rapport. I hate it when salespeople evade my questions, and I won't treat my clients (or potential clients) that way. So I usually say, "The first session lasts about two hours. During that time, we do a thorough interview so that I can find the best approach, you get to learn self-hypnosis techniques that can change your life, and then we record a hypnosis session customized to your needs, which you can use for reinforcement any time you want. The price for all of that is only (fill in your price)."

For smoking, I sell a three-session package that costs nearly $300 (up front) because I want to be sure that the smoker is truly committed to stopping. I've had some smokers on the phone who became incensed that I charge that or that I won't pay it out or that I don't offer a money-back guarantee. My response: I wish them luck in finding the cessation method that is best for them. I've also had smokers who said, "That's less than I thought you would be charging; I spend more than that on concert tickets."

If a client says, "The hypnotist on the other side of town will do it for less," give this answer: "Do you want the cheapest hypnosis in town, or the best?"

Always state your prices with confidence and pride. Never let someone talk you down. Many people do not value what they get for free, so you are more effective if you charge for your sessions and stick to your prices.

That said--if you want to offer a free consultation, do so. If you want to do low-cost or free seminars to advertise, do it. If you want to offer a limited number of free sessions to local charities, do it. If you want to offer a free session to someone well known in your area, do it. Those are advertising costs.

As one prominent hypnotist on this site likes to say . . .

Do good and make money,

James

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Permalink Reply by Roger Moore on February 28, 2009 at 8:28am

Hi Andrea
Great question. My fee is $165 per hour if paid at the time of the session and $150.00 if pre-paid (almost all my sessions are pre-paid) I soon will be raising my fee to $180 and $165.00. It's not negotiable, no sliding fee and since 1997 (when I went into private practice) I can't recall a time when it was an issue. Yes, there are on occasion people who cannot afford that that go to someone else - they are not my clients.

bottom line - don't create price issues in your own mind. Set you fee - it is what it is. And, you will do well.

BTW - every time I have increased my fees, my business increased.

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Permalink Reply by the grumpy hypnotist on February 28, 2009 at 10:12am

I think it is a mistake to compare this work to massage therapy. Don't get me wrong, I love a good massage.

But do you really think a nice relaxing massage can be compared to helping a person overcome a lifelong challenge that is preventing them from enjoying living, or helping someone stop a life-threatening (and very expensive) habit like smoking?

Besides, have you ever taken a look at the "therapeutic services" section of craigslist? Do you really want to occupy the same mental real estate as the services that are listed there? It seems like that field is full of desperate, struggling therapists (massage and otherwise) who offer sliding scales, home visits, etc. That's no way to make a living.

You need to charge alot more, because in this work, your goal is not to "keep people coming back", but to get them to stop coming back by helping them become more capable and self-reliant. Anyway, do you want to be known as the "cheapest hypnotist in town"? Sort of like the "bargain basement lawyer" for people who can't afford better choices?

Handle price objections by not waiting for a discussion. Your marketing materials should make crystal clear the value you offer, before wasting time chatting with prospects. Price objections (if they happen with any sort of regularity) mean you've failed already at some point in your marketing process.

Take the initiative in rejecting clients who think "it's too expensive"; this is a valuable part of pre-screening process. They are likely not in enough pain (yet) to be good clients. I believe this is the real secret to higher success rates (especially with things like smoking).

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Permalink Reply by Kathleen Hanover on February 28, 2009 at 10:42am

Hi Andrea,

Stand by for a pep talk from another woman entrepreneur!

As a business owner, you MUST be able to tell the difference between unqualified prospects and clients to be a success. Price is one of the screening mechanisms you have at your disposal. Unqualified prospects will steal your time, your money, and your passion if you let them, so don't let them.

It is reality that some people do not have the time, money or motivation to be your clients. They aren't good enough for you (however you choose to define that). Your price is your price. Be honest and non-apologetic about it. Guts and humor help, too...you might say, "I charge 5 cartons of Marlboros a session" to a stop-smoking client, or "I charge half an unpaid sick day"or " two cases of Ben & Jerry's" to a weight loss client (or whatever allows you to put your price in context).

A prospect who sincerely wants help will find the time and the money, and they will find you.

And honestly...it's almost never about the money. All things being equal, people do business with people they trust. And all things not being equal...people still do business with people they trust, even if you charge more than your competition!

One more thing I'll recommend...find the time and money to take Sandler Sales Training. I'm sure there's an office near you. Every business owner could benefit from Sandler's sales approach, which is based on honesty and no-pressure sales. In two years of Sandler training, my effective hourly rate has gone from about $25 an hour to as much as $800 on some projects. Sandler sales technique is almost entirely responsible for the success of my business.

And now...I'm off to raise my prices. ;)

Kathleen

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Permalink Reply by Richard Nongard - NLPBoard.com on February 28, 2009 at 2:10pm

I chage $129 dollars for a first session, they pay upfront, and I never negotiate price EVER. I also post my prices on my website. People know how much I charge before they even call me, so if price were an issue they wouldnt call. $129 by the way, is on the cheap side. My rates should be more in line with Roger. I was so busy yesterday, I was hoping for cancellations so I would have time to rest.... Price is not an object. People want a PROFESSIONAL. Price is part of the percieved value, as is the setting (office) that people use. By the way, my attorney charges me $190 an hr, my mechanic $65 per hour... Halfway between the two is a pricepoint people are used to....

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Permalink Reply by Richard Nongard - NLPBoard.com on February 28, 2009 at 2:56pm

Cynthia does what I do. I also have them pre-pay for three sessions for most issues ($229). In the case of smoking, I schedule the first session, and they leave a non-smoker. I schedule the next session 2-3 days later and touch on any difficulties or reaffirm success. I then leave the thrid session for anytime within 90 days. They are already a non-smoker. Most do not use the third session, but those who do use it for stress managment, weight loss, or some related issue...

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Permalink Reply by Roger Moore on February 28, 2009 at 3:18pm

Richard - I want your attorney! Around here they are $500 to $600 + an hour. I hesitate even to say "hi" to my attorney when I see him on the ferry.

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Permalink Reply by Pattie Freeman CH.t, MST on February 28, 2009 at 3:43pm

Good post...you are right about the consultation on the phone if they have objections even after the call then they don't really want to do it anyway.

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Permalink Reply by Pattie Freeman CH.t, MST on February 28, 2009 at 3:48pm

James
I agree with what you wrote..I give a FREE consultation on the phone to qualify them if they are ready to quit smoking or not. That is my price also for 3 session and upfront does show commitment, My first session last about the same also...alot of clients appreciate the time spent with them and they are not rushed out of the office.
I try to also give them the best or cheapest speach..and they usually set the appointment.
I agree be confident..and let it happen.

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Permalink Reply by Pattie Freeman CH.t, MST on February 28, 2009 at 3:54pm

Roger,

I find what you wrote hot home I also set my fees higher and ,my clients increased tremendously I guess they feel if your prices are higher you must be the best.
I use to do a slide fee but no longer..I had alot of problems like no shows, late etc..but as my fees got higher it weeded out the undecided and got real good clients that are repeat clients and they bring me referrals... thanks for sharing.

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