Written by: Vickie Sullivan | October 10, 2019
Should You Offer a Low-Cost Option?
A lot of us respond to “bargain basement” competitors with our own version of a low-cost option. On paper, it makes sense: We cut back on the scope, the features, or our role and still bring the value of our expertise. We can compete without compromising price integrity.
The downside often not discussed: Different investment levels attract different clients. And those differences can create more babysitting, scope creep, and other headache-inducing activities. To head off these slow-moving train wrecks at the pass, let’s take a short trip to the dark side. Here are two client scenarios that look manageable up front but are often red flags in hindsight:
• More help, less budget. These folks need help and know it. But they tend to underestimate the help they need due to budget blues. This creates expectations far beyond your low-cost option. This is how scope creep is born.
Listen: 2 Subtle “Tells” That a Prospect Needs More Help Than They Think
• Know less than they think. Everyone likes to collaborate. The problem is determining who starts first. Who gets the ball rolling? Who creates from a blank page and who is the “editor” who gives feedback? Sometimes these folks assume that you will “give” them the answer, and they get to decide if works. If that’s how you work, great. But if your job is giving feedback and adjusting their work, be sure they understand that. Again, it’s another source of scoop creep.
We all want to be that person who helps those in need. And yes, low-cost options can expand our market share. Just make sure you serve folks what they are getting and how we work.
Now Read This:
- How a Great Opportunity Turns Into a Train Wreck
- Strategic Sounding Boards Give Real-World Advice for When the Rubber Meets the Road