How to Talk to Your Client About Budget Without Feeling Awkward
Read on to find out the best way to talk numbers – and why it doesn't have to be uncomfortable
It can be tricky to broach the subject of money with a client, but it’s important to talk about it early on to ensure you can carry out the job on time and on budget. Be confident about your pricing process and you’ll demonstrate your experience and professionalism – you’ll also be able to determine whether or not the person is your ideal client.
Explain the figures
Once you have a starting point to work from, you can then explain your costs and what your services entail. Discuss your client’s ideas and give a detailed explanation of the costs involved in realising their vision. By being upfront about costs, your client can make an informed decision.
Jessica Gay, marketing manager at joinery firm Bath Bespoke, says: “We encourage the client to discuss their ideas for the project and aims first, then ask if they’ve thought about budget. We can then discuss whether their ideas are doable or if things need to be adjusted.”
Ilya Karpenko of German kitchen specialist Illya Kitchens, says: “Let the client know the price range of your products and services. Be transparent to ensure the client is aware of all associated costs which they might not have accounted for when budgeting for their project initially.”
Once you have a starting point to work from, you can then explain your costs and what your services entail. Discuss your client’s ideas and give a detailed explanation of the costs involved in realising their vision. By being upfront about costs, your client can make an informed decision.
Jessica Gay, marketing manager at joinery firm Bath Bespoke, says: “We encourage the client to discuss their ideas for the project and aims first, then ask if they’ve thought about budget. We can then discuss whether their ideas are doable or if things need to be adjusted.”
Ilya Karpenko of German kitchen specialist Illya Kitchens, says: “Let the client know the price range of your products and services. Be transparent to ensure the client is aware of all associated costs which they might not have accounted for when budgeting for their project initially.”
Talk about past projects
A good way to reassure a client that they’re getting a fair deal is to give them actual examples from past projects.
William Jones, director of fine furniture makers Clermont Carpentry, says: “When I’m discussing ideas with a potential client, I’ll often show them around past projects and talk about costs. I’ll even put them in touch with previous clients.”
A customer will appreciate you taking the time to share detailed information, and this will help to set a realistic budget right from the start. To save you time, it’s worth checking out a business management platform like Houzz Pro, which enables you to create quick, detailed templates for all your quotes and estimates.
A good way to reassure a client that they’re getting a fair deal is to give them actual examples from past projects.
William Jones, director of fine furniture makers Clermont Carpentry, says: “When I’m discussing ideas with a potential client, I’ll often show them around past projects and talk about costs. I’ll even put them in touch with previous clients.”
A customer will appreciate you taking the time to share detailed information, and this will help to set a realistic budget right from the start. To save you time, it’s worth checking out a business management platform like Houzz Pro, which enables you to create quick, detailed templates for all your quotes and estimates.
Give a quote and be flexible
Don’t assume that a high quote will scare a potential customer away. An informed client won’t necessarily go for the lower price, as they’ll probably appreciate the costs involved in quality workmanship. Give a price range for the potential client to work from. This will allow you to be flexible.
“The key to a profitable business is to be adaptable to the consumer’s needs, which does mean you need to be flexible with your pricing,” explains Karpenko. “If we can beat a competitor’s quote and still be profitable then we will do it. You always need to find a golden middle with your client.”
Don’t assume that a high quote will scare a potential customer away. An informed client won’t necessarily go for the lower price, as they’ll probably appreciate the costs involved in quality workmanship. Give a price range for the potential client to work from. This will allow you to be flexible.
“The key to a profitable business is to be adaptable to the consumer’s needs, which does mean you need to be flexible with your pricing,” explains Karpenko. “If we can beat a competitor’s quote and still be profitable then we will do it. You always need to find a golden middle with your client.”
Stick to what works for you
Understanding your business model and how this works best for you can be a great way to streamline budget discussions. And be upfront with a potential client about your pricing to ensure you’re both on the same page straight away.
“My business is about offering a good service and high quality craftmanship, and I make that clear from the start,” says Jones. “I stick to my pricing and get the message over to them about quality. If a client’s initial email says they want to keep costs right down, I know they’re probably not right for me.”
Tell us…
What budget discussion tips do you have? Share your experiences in the Comments below.
Understanding your business model and how this works best for you can be a great way to streamline budget discussions. And be upfront with a potential client about your pricing to ensure you’re both on the same page straight away.
“My business is about offering a good service and high quality craftmanship, and I make that clear from the start,” says Jones. “I stick to my pricing and get the message over to them about quality. If a client’s initial email says they want to keep costs right down, I know they’re probably not right for me.”
Tell us…
What budget discussion tips do you have? Share your experiences in the Comments below.
Some clients are reluctant to reveal their budget straight away, but there are ways to get around this. Offer a price range as a starting point and you might find your potential client is more forthcoming.
If the answer to your question about budget was, “We’re not really sure what our budget is”, give the client a range such as £10,000 to £20,000. This will often prompt the response “£20,000 is too much, but we’d perhaps be able to pay £15,000”. By putting some figures out there, you’ll usually trigger a response that will give you some idea of what they want to pay.