3 Good Things I’ve Learned from Cheapskate Clients I Wish I Knew Earlier
They are my real-life MBA
Cheapskate clients.
Or prospects.
Well. Where do we start?
I know how it feels when I meet one. Our enthusiasm balloon pops. And we scream in quiet desperation. Like that dude on the display image.
Why me? And that is my only prospect meeting this week!
You know you have a cheapskate client on deck when they suddenly come alive during the pricing slide. Not the offer slide. Pricing.
They will scrutinize every single digit behind the dollar sign.
And I know many fellow 1-Man consultants will make this mistake. That is, we write off such prospects ahead of time.
I say that is the wrong thing to do.
We can never avoid them.
Therefore, it is better to understand and learn to work with them. I have 3 lessons (actually personal experiences) to offer when it comes to understanding cheapskate clients.
Here goes.
Lesson 1: Pure Pricing Objections Are Weak Responses
Cheapskate clients spit out pricing objections without thinking.
Let me list the classic ones you can relate to.
- If I buy 5 platform subscriptions from you, can you give me 2 for free?
- I don’t need a package. I just want that 1 thing!
- Your products and services are so expensive!
- The other person is 20% cheaper.
- Can I put you on speed dial?
- Discount, please?
- Any freebies?
It is normal to be frustrated. It feels like cheapskate clients are out to rob you.
Walking away there and then is a bad idea. Say what?
Yes, allow me to repeat.
Walking away there and then is a (VERY) bad idea.
You see, these people need something from you. Otherwise, they will not meet you.
This is my advice when dealing with pricing objections from such clients.
Avoid their 800-pound left-hook cheapskate punch. Don’t engage. Instead, get them to play your game.
You can dismantle their objections with innate curiosity.
- Why do you need free subscriptions? Who are you giving it to? May I know?
- The other person is 20% cheaper? Why aren’t you buying from him?
- What do you need the freebie for?
They will be caught by your questions because they focus solely on price, and you took them out of their comfort zone.
Plus.
You will learn a lot about their motivations, thinking, and why they are meeting you in the first place.
I know I did.
Lesson 2: They Are Not the Real Buyers
What if I tell you this?
Cheapskate clients are agents for real buyers. They negotiate as if their life depends on it because they have a strict budget to meet.
What crosses your mind now?
Several thoughts popped into my head when my consulting mentor told me the above. They include the following.
- Fighting back with value does not work because agents need not understand the value
- Cross-selling and upselling will fail because agents are tasked to buy that 1 thing
- They want to buy and walk away fast
I used to stop them from walking away. I wanted to understand them more.
Now? I don’t. There is zero need for me to do so.
Because genuine buyers will come to me soon for user registration, software training, and product support.
And that is the key.
Confused?
Let me get you an analogy.
You want to focus on the parent when you are selling baby milk. Or peripheral products.
Not the butler or domestic helper dispatched on an errand.
Disclaimer: I hold great respect for butlers and domestic helpers. Please do not get me wrong. My point is for 1-Man consultants to remain laser-focused on our target clients.
Lesson 3: They Are Not Ready
When the student is ready the teacher will appear. When the student is truly ready… The teacher will disappear.
Let us assume that you write online.
You enjoy sharing your ideas via words. And you naturally commit to writing 1 article a day. Dollars and cents start rolling in.
And then, your ambitions grow.
You want to make more.
But earnings stagnate.
You start wondering if you should attend courses online. You browse through writing courses offered by top dogs. Their price tags catch your eye.
Gasp! So expensive!
And you mutter this within yourself.
It is okay. I will pass. Maybe I need to write more.
In truth, you are not convinced that you need help. That is fine. The time is not here yet.
It will come one day.
And when it comes, you will start shopping with the intention of upskilling. You know you want to learn to write better. You buy.
It is the same for cheapskate clients.
The reason they are cheapskates is that… they are not ready to buy. They have not convinced themselves.
It is their problem, not yours.
This is how I deal with them.
- I ask how frustrated they are with the current circumstance
- I ask them what it means to perform better
- I ask how urgent they require the solution
They behave in a cheapskate manner because their mind is fogged with uncertainties. What can we do to help them clear their headspace?
1st Tip of the Day
You want to disassociate cheapskate behavior from the person in front of you. Being emotional pushes us away from them.
Avoid that.
2nd Tip of the Day
Our job is to give them certainty so they can take decisive action.
Try to identify their problems. Once you hit the right spot, they know you, your products & services, are what they need.
Decision certainties open wallets.
In short, they are not cheapskates.
They are just not ready.
Make sure you are there when they are. They will buy. And at that time, they will buy big.
Parting Keynotes
I know, I know.
You find it a drag to deal with cheapskate clients. They suck up plenty of time and may not buy anything from us. I get that.
However, we can learn a lot about them.
Here are 3 from me.
- Pure pricing objections are weak responses
- They are not the real buyers
- They are not ready
Our consulting sales closing rates increase when we understand how they think the way they do.
And.
We know how to stay in meaningful conversation with them when we know where they are coming from.
As a content contributor, I write my observations from daily life and my business exposure. Because our life experience is the bedrock of our unique perspectives.
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