When a Potential Client Says You're Too Expensive

“I’d love your advice on how to respond to a potential client who declines because your rates are too high. A simple “thank you for your consideration” or do I try to push the sale one final time?”

Is it Even Worth Responding?

Yes. Always.

A customer could have just ignored your initial quote and never replied back to you, but they gave you the courtesy of an honest answer.

Remember, a customer comes to you for that quote because they valued your work and wanted it for themselves. That’s Compliment #1 from them.

Compliment #2 comes in the form of feedback — contract signed or not, that’s still of value to your business.

Be grateful you received two compliments here, and since you’re a gracious business owner, accept those compliments with a reply.

Should I Extend a Backup Offer?

Depends: How much do you need the business?

Some business owners keep a small added value (or a reduced value) offer in their “back pocket”.

Pro: You’ve got a pre-calculated incentive to offer a hot sales lead that doesn’t compromise your business operations because you’ve planned for it in-advance.

Con: Word can spread among deal-hungry customers. You’ll want to be prepared to either extend the offer to everyone who asks about it, or have a response for declining outside requests.

Your reply for offering a smaller valued bonus item might be something like:

Thank you for your honesty! I could offer 1 free class pass as a bonus for signing up this week if you might find that helpful. Otherwise, looking forward to seeing you soon!

Here, you’re not discounting your services/product at all. You’re offering a bonus incentive that makes people feel like they’re getting more bang for their buck. Bonuses can be for a limited-time only, and can be a great way to test out the market for a future expanded product/service.

Your reply offering a reduced value might be something like:

I completely understand! We do have one mini-session still left for $100 instead of the $400 long session. If you would like to move forward with that, I would be happy to save the spot for you. Otherwise, looking forward to working with you in the future!

In this offer, you are changing the monetary value of your business. We only recommend you do this if you haven’t maxed out your sales and need the new business.

You’re not obligated to change your business to have business.

Prospective customers who comment that your prices are too high aren’t your ideal customers in most situations. You do not need to lower your prices or create custom packages to meet an un-ideal customer’s need. It’s purely your decision.

Our no-incentive reply to this customer would be:

Thank you for the compliment of inquiring! We absolutely understand and look forward to working with you when your budget allows.

Alternative responses:

No worries! I understand how important it is to stay within budget. If I have deals coming up in the future, I’ll be sure to let you know.

Then keep this customer on your mailing list for future promotions.

That’s okay! Thank you for the compliment of asking about my work in the first place. If you have any future questions about {product/service} or your budget changes, please feel free to reach out!

Then don’t worry about following up or keeping the person on your mailing list, unless you truly think they will convert to a sale later. Out of sight, out of mind!

Power Up Your Script

If you receive enough of these inquiries and are sending multiple responses often, you might find adding a kind customer service gesture helpful. Start curating a small, trusted referral list of lower-priced companies.

You could work out an affiliate relationship with those companies on your list so that you get a bonus for any sales made on the referral.

The customer appreciates the kindness and attention to detail, a fellow community member appreciates the hot lead, and you’ve impressed 2 people with your humble professionalism while still earning a potential profit. Everyone wins.