Why do clients balk?

Peter Wiley · November 30th, 2006, 08:27 AM

Many times it really has nothing to do with money. Going out and getting a bid for a project is often the first step in an organization's decision process. There may be an internal debate: should we do the videos or stick with our traditional training program? Various people have different stakes in doing the project and use the bid to argue internally.

Perhaps the manager of the person who wants the videos does not like the idea but does not want to say "no" outright, so he or she says "well that's an interesting idea, go out and get a bid." The bid comes back and it's "too high" or "too low" and now the manager has a reason to say no and has let the troublesome innovator feel like they had a chance etc. When an organization obviously has the money but fails to bite, organizational politics are often the reason in my experience.

Before getting too invested in a bidding process with any potential client it's a really good idea to ask general questions about the organization, about who has decision authority on a project, about why they want to make the video, how did they get the idea etc. Among the worst things to do is to get drawn into a discussion about price too soon.

You also don't want to be drawn into a project that will remain a political football inside the organization through the production process. That's just a nightmare.

Mark Holland · December 5th, 2006, 12:25 PM

I've run into more than one person who thinks cheaper equals cheap. A lowball bid will loose the job with some clients, because they think if your price is low, so is your quality of work...no matter what your demo looks like!

Chalk this one up as a bid lost, and move on. You can't win them all! (BTW, that "doing it in-house" story may be just that, a story to tell you because they went with someone else.)

Michael Nistler · December 6th, 2006, 03:48 AM

Hi Jeremy,

Focusing on price allows us to be commoditized, always a losing proposition. Instead, concentrate on the value of your product and services, detailing the customer-perceived value of everything you'll be doing. In essence, we need to *educate* our customers. This is not saying, "oh, I'll be doing xxx hours of editing" (which means little to the customer). Instead, we need to say things like, "our excellent video editing maintain the audience's interest by frequent changing the camera angle using smooth disolves, ... We remove inappropriate video, audio, and enhance the production with interesting royalty-free music... As videographers, we appreciate the value of composing the scene to ensure the best camera angles, distances, perspectives,... with special attention to lighting that enhances the video without interfering with the talent..." Anyway, for every customer "no" or "too much", we need to change the paridgm to the value we add that will make our client and the talent a success.

BTW, you did begin with identifying the customer's success criteria, didn't you? If not, that's a very valuable lesson learned. How many questions did you ask? They must tell you EVERYTHING, otherwise we're depositioned as a nasty salesman. Instead, we want to be seen as a CONSULTANT! listen, Listen, LISTNEN!!! How can we sell the value of our product and services when we haven't identified what makes our *customer* successful? NEVER give a price quote without determining what the customer REALLY wants! Sure, if the customer has gapping holes in the needs assessment, we need to proceed with an education process. But don't jump to price until you've convinced the customer your product/service is truly valuable. If not, either walk away if you won't deliver something substandard that will make neither party happy, or continue to educate the customer by demonstrating WHY your proprosal is very important to the customer (not just you).

Here's a link on how to sell value, the 7 step program, etc - listen to this audiocast by Scott Bourne and it will change your perspective on how to close the deal (start at minute 7):

http://pa.gigavox.com/shows/detail1571.html

Warm Regards, Michael

December 5th, 2006, 12:25 PM	#17
Mark Holland Major Player Join Date: Nov 2006 Location: Central North Carolina (Raleigh, Durham, & surrounding areas) Posts: 301	Sometimes the price is too low. I've run into more than one person who thinks cheaper equals cheap. A lowball bid will loose the job with some clients, because they think if your price is low, so is your quality of work...no matter what your demo looks like! Chalk this one up as a bid lost, and move on. You can't win them all! (BTW, that "doing it in-house" story may be just that, a story to tell you because they went with someone else.)

December 6th, 2006, 03:48 AM	#18
Michael Nistler Major Player Join Date: Aug 2006 Location: Petaluma, CA Posts: 456	Value versus price Hi Jeremy, Focusing on price allows us to be commoditized, always a losing proposition. Instead, concentrate on the value of your product and services, detailing the customer-perceived value of everything you'll be doing. In essence, we need to educate our customers. This is not saying, "oh, I'll be doing xxx hours of editing" (which means little to the customer). Instead, we need to say things like, "our excellent video editing maintain the audience's interest by frequent changing the camera angle using smooth disolves, ... We remove inappropriate video, audio, and enhance the production with interesting royalty-free music... As videographers, we appreciate the value of composing the scene to ensure the best camera angles, distances, perspectives,... with special attention to lighting that enhances the video without interfering with the talent..." Anyway, for every customer "no" or "too much", we need to change the paridgm to the value we add that will make our client and the talent a success. BTW, you did begin with identifying the customer's success criteria, didn't you? If not, that's a very valuable lesson learned. How many questions did you ask? They must tell you EVERYTHING, otherwise we're depositioned as a nasty salesman. Instead, we want to be seen as a CONSULTANT! listen, Listen, LISTNEN!!! How can we sell the value of our product and services when we haven't identified what makes our customer successful? NEVER give a price quote without determining what the customer REALLY wants! Sure, if the customer has gapping holes in the needs assessment, we need to proceed with an education process. But don't jump to price until you've convinced the customer your product/service is truly valuable. If not, either walk away if you won't deliver something substandard that will make neither party happy, or continue to educate the customer by demonstrating WHY your proprosal is very important to the customer (not just you). Here's a link on how to sell value, the 7 step program, etc - listen to this audiocast by Scott Bourne and it will change your perspective on how to close the deal (start at minute 7): http://pa.gigavox.com/shows/detail1571.html Warm Regards, Michael

November 30th, 2006, 08:27 AM	#16
Peter Wiley Major Player Join Date: Apr 2002 Location: Lewisburg PA Posts: 752	Many times it really has nothing to do with money. Going out and getting a bid for a project is often the first step in an organization's decision process. There may be an internal debate: should we do the videos or stick with our traditional training program? Various people have different stakes in doing the project and use the bid to argue internally. Perhaps the manager of the person who wants the videos does not like the idea but does not want to say "no" outright, so he or she says "well that's an interesting idea, go out and get a bid." The bid comes back and it's "too high" or "too low" and now the manager has a reason to say no and has let the troublesome innovator feel like they had a chance etc. When an organization obviously has the money but fails to bite, organizational politics are often the reason in my experience. Before getting too invested in a bidding process with any potential client it's a really good idea to ask general questions about the organization, about who has decision authority on a project, about why they want to make the video, how did they get the idea etc. Among the worst things to do is to get drawn into a discussion about price too soon. You also don't want to be drawn into a project that will remain a political football inside the organization through the production process. That's just a nightmare.