Overcoming Fee Cutters

There will always be fee cutters competing against you, but you can overcome them by simply offering a better value. In this Coaching Tip I’ll tell you about differentiating yourself in the marketplace so your customers will gladly pay you what you’re worth.

It’s the worst feeling if you cut your fee to match an undercutting competitor and still don’t get the business. The fact is, if you don’t offer a better experience for your higher fee there’s no reason for a client to choose you over any other agent at any fee. This is where differentiation comes into play.

From the customer’s point of view skill and experience are less compelling than confidence and energy. You will win business by selling yourself better than other agents. It’s all about presentation, and that is based on how well you listen to your customer and relate your value to their needs.

By asking the right questions to get the information you need about your customer you can then offer them the features and benefits they desire. You also need to know what they’re looking for in an agent, what they don’t want, and why they decided to call you. This feedback will help you build your fee defence. The important thing is to get the appointment and then present yourself as their best choice.

If you don’t believe in your worth as an agent your clients won’t believe in you either. Get clear on what you believe you are worth and why, and stand firm in that estimation. Not only will you be able to sell that fee to most customers, you will also avoid having to deal with difficult clients who aren’t worth your time and effort.

Negotiating on fee never turns out well. It’s much better to negotiate on service levels that determine pricing. Using the fee approximation close you’ll set an anchor by stating your highest fee level first, and then dropping to lower fees based on what the customer receives at each level. Present yourself as the best value for the money, get an agreement and then move forward.

In our training programs you learn the Seven Steps to Better Fee Negotiation with dialogs you can use if a client persists in questioning your fee. Whatever your approach, overcoming fee cutters and receiving the fee you deserve comes down to believing in your own worth, demonstrating your value and presenting with confidence.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.