Money, like it or not, plays a role in just about everything we do. It’s something we think about with every paycheck, purchase, bill, and budget. In the business world, how much money you make or lose determines if you stay in business. Businesses want more money and customers want to get the best deals. But sometimes it’s necessary to increase the amount you’re charging your clients. So, for businesses that thrive on client relationships, what’s the best way to ask for more money? Stick around and you’ll find out.
Give Clear Reasons
It’s best to go in with solid reasons as to why you need them to pay more money. Determine the reason behind the necessity, such as projects taking longer that you originally thought, unforeseen issues, a rise in market prices, and so on. If you state your reasons right off the bat, clients will tend to be more understanding and will work with you. As a side note, if you are in a fixed price contract it will most likely get more complicated since you are legally bound to that amount.
Define a Range
You need to enter with a range that you will be satisfied with, and also include a list of what the increased costs are for. If the items are essential, they are really non-negotiable for the client. It’s not recommended to increase the price to something considerably above your competitors’ prices, because chances are you’ll be losing customers to them.
Relate price increase to the added value your clients are receiving. Make sure you express the added value increase outweighs the increase in price. Value is a great selling point and really helps clients realize the numerous benefits that can come from your services.
If you need or want more money, you’re going to have to say something to get it. If you have a project that is taking longer, say something. If you get to the end and charge the client more without explanation, chances are they won’t be all that elated. If you’re entering a new project, use the steps above and below for getting more money.
Be confident when going to ask for more money, it’ll show you’ve done your prep work and know why and what you are there for. Trust that you are doing the right thing; it’ll make the whole process easier and less stressful on you.
More money can be a hard thing to ask for, but sometimes it must be done. The above steps will help provide you with a good base to start off with and hopefully provide you with some more confidence.