The Pricing Conversation When You Sell Yourself

Expert Advice on Answering Pricing Questions as a Fractional Executive

"Just tell me the price."

"How much does it cost?"

"All I want is your best price."

"Can you just give me the price?"

"How much is it?"

"All I am looking for is a price."

"What is your best price?"

"How much?"

from a recent client conversation near you

When you're a fractional executive, the pricing conversation is particularly delicate. Unlike traditional roles, where pricing is often standardized, fractional work is tailored to each client's needs, making the discussion about rates more complex. Sharing your rate too early can prematurely narrow the conversation to cost alone, which can overshadow the value you bring to the table. However, delaying too long might create frustration or distrust in your potential client. So, how do you navigate this balance effectively?

The Timing of Price Disclosure

When asked, "How much does it cost?" many sales experts agree that the timing of your response is critical. If the price discussion happens too soon, you risk reducing your services to a commodity. However, as a fractional executive, your offering is not merely a product with a price tag; it's a strategic partnership that delivers value far beyond the cost.

One approach is to gently deflect the question until you've had a chance to discuss the client's needs in more depth. A well-crafted response might be, "I will be happy to discuss rates with you, but I want to make sure I fully understand your requirements first. Can you tell me a bit more about what you're looking to achieve?" This not only buys you time but also positions you as a problem-solver rather than a service provider.

Establishing Value Before Price

The cornerstone of any successful pricing conversation is establishing value before discussing the cost. As a fractional executive, your value is directly tied to the results you deliver, which are often tied to your deep understanding of the client's challenges and your ability to address them effectively.

Before divulging your rate, engage in a discussion that highlights your expertise, your understanding of their industry, and how your past experiences have led to measurable outcomes in similar scenarios. This not only builds trust but also allows the client to see the connection between your rate and the value you're offering. When the time comes to discuss pricing, the conversation will be less about cost and more about return on investment.

When to Share Your Rate

Despite the emphasis on value, there will come a point when the client needs to know your rate to decide whether to proceed. The key is to recognize when that moment arrives and to be prepared to discuss it confidently.

One strategy is to offer a pricing range rather than a fixed rate. For example, "Depending on the scope and the specifics of the engagement, my fees typically range from X to Y. Let's discuss your needs in more detail so I can provide a more accurate estimate." This approach maintains flexibility and leaves room for negotiation based on the final scope of work.

Alternatively, if you're comfortable with your rate and confident in the value you provide, you might choose to be direct: "My rate for this type of engagement is X. This includes [specific services or outcomes], which will help you achieve [client’s goals]." This transparency can build trust, particularly if you’ve already established the value of your services.

Handling Pushback on Price

It's not uncommon for clients to push back on price, especially if they're exploring other options. In such cases, it's crucial to reinforce the value conversation. You might say, "I understand that budget is a concern, and I’m confident that the value I bring justifies this rate. However, I’m happy to discuss the scope of work to ensure it aligns with your budget and delivers the outcomes you’re looking for."

This not only reaffirms your value but also opens the door to a collaborative discussion about the scope and priorities, which can help you tailor your offer to meet the client's budget without compromising on the quality of your work.

The key for fractional executives is that the rate discussion should never be about cost alone. By focusing first on understanding the client's needs and clearly articulating the value you bring, you can position your rate as an investment in their success rather than just an expense. And when you do discuss pricing, be confident, clear, and prepared to show how your rate aligns with the value you deliver.

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