How to Get Rid of Cheap, Penny-Pinching Clients For Good (Even If You've Tried and Failed Before)

"The guys up the street are cheaper."

"Can't you do it for any less?"

"Can I get a discount?"

Cheap, penny-pinching customers are the bane of your existence as a business owner.

They whine and complain about the smallest details. They constantly ask you to give away your work for lower and lower prices. Beyond where it's profitable at all to do so.

They demand this as if you're the enemy. As if selling something is disgraceful to the human race.

To make matters worse, there are days you can't get away from them. You get asked the same questions again and again.

By the end of the day you're ready to ram your head into the wall, just for it to start all over again tomorrow.

You get asked so many times you might've started to think "maybe they're right. Maybe I am too expensive."

If this disease has hung around for long enough that you actually think you're doing something wrong, that selling your work at a profitable price is somehow unfair, don't lose hope.

There is a fix. It's not an overnight fix. But the sooner you start, the sooner you'll reap the benefits.

But before I give you the cure, let's go over what you're not going to do.

Never Discount (Unless You Want to Debate Every Price You Have)

Your first impulse when you get price complaints may be to discount. You think "I've got some wiggle room, and I need the sale, so it's fine."

No, it's not fine.

You're opening Pandora's box every time you do that.

If you're going to do any kind of work for a lower price, then you do less.

Never under any circumstances are you to discount for the same service. The reason this is so dangerous is that it teaches your customer that all your prices are negotiable.

They see it as you charging them more than necessary (their definition). Once you lower your prices for one service, everything else becomes debatable.

Because if one price can come down, how much extra are you charging them for your other services? This is how they think.

When this happens, you no longer have control of the situation or the sale, and you're at their mercy as long as you continue to play.

So, we won't discount.

A Cheaper Option is More Expensive for You

Maybe your next thought was to have a budget service that's affordable for price conscious shoppers.

This sounds good in theory because you're "capturing market share."

All you're really doing is making yourself busier for less cash.

Each service you provide requires resources. And any resources you allocate towards a lower end service is a cost that is not outweighed by the margin you'll receive in return.

You'll end each day wondering why you're working so hard while getting paid so little.

While I can't stop you from doing that, I'm going to assume you want better than that.

So we're not doing a "budget" option.

A Satisfaction Guarantee Only Guarantees Headache

Maybe your workaround is to still get them into the expensive package, but you give them a "satisfaction guarantee."

"Love it or your money back."

Famous last words.

These leeches read those words as "free work." And you need to think of these types of guarantees as such.

They're not all bad. For the customers that are happy to pay for your service, give them the guarantee. But we're not talking about the customers we like.

We're talking about the disease of "cheap."

If someone has willingly told you that they think you're too expensive, then that's the problem that needs to be fixed. Not their satisfaction.

They're unsatisfied before you even begin. It won't matter how good you do. It wasn't worth it to them from the start.

So you end up working overtime to make sure they're happy, all just to refund the purchase and have nothing but battle scars to show for it.

So, no guarantees.

The Fix is Upstream of The Pain Point

All of these are symptoms of a marketing problem. And the solution is found within the quote at the top of this letter.

"You should think about all advertising decisions in this context: Is this crafted and aimed to attract the customer I want?"

If you market to everyone, then anyone is what you get. Well, as I'm sure you've learned, anyone is a cheap son of a bitch.

You must see that marketing to everyone only appeals to bargain hunters. That's how you end up with these leeches on your doorstep.

These are people who are not your customer, they're deal hunters. Your customer is hidden behind more specific targeting.

And it all comes down to how you're speaking to your customer in your marketing.

If you are not directly speaking to your client, then they don't know you're talking to them.

There's a massive difference between "We do HVAC services" and "We do HVAC services for hotels in San Diego with over 500 rooms."

The first will bring in everyone from grandma down the street to a budget constrained business down the road that has A/C problems.

The second tells that specific customer who they should call when they have HVAC troubles. They don't need to guess if you can help them.

So, if you're living with the "disease of cheap", then I suggest you look at how you're speaking to your audience.

Are you clear in who you're talking to? Do your ideal clients know you're talking to them?

If they don't, then you've got a problem. And it's a massive one that will take down your business if left unaddressed.

Clarify your marketing. Tighten up your messaging.

You'll see results quickly. Not as quick as you want, but quick enough to keep your business alive.