Do you get asked the question “What’s Your Hourly Rate?” by potential clients?
How do you respond?
Do you just throw in one of these number into your response?:
Potential clients often respond in one of these ways:
- “That’s too cheap!”
- “ooo, that’s too expensive and way out of my budget!”
- “ok, sign me up!”
If they say “that’s too cheap!” that’s a disaster because:
- You’ve set off an alarm in the prospects head. You’ve signalled to them that your quality is low, or you don’t have enough experience, or enough training. If you did have those things you would have said the rate they wanted to hear
If they say “ooo, that’s too expensive and way out of my budget!” that’s a disaster because:
- You’ve scored a black cross on their list of criteria and if you try and justify it now by jumping in and defending yourself with a list of your previous clients, experience, training you’ve had, years on the job, results you’ve got, whatever, it’s too late, you are on the back foot.
Even if they say “ok, sign me up!” that’s a disaster too because:
- You could have doubled it and they might have said yes! You’ve just cut yourself off from a huge pay day. Gutted.
So what can you do?
First, watch this 37 second video of how I answer the question “what’s your hourly rate?”, and then keep reading below:
My point is, there is no way to answer the question with the right number.
So don’t do it.
Never say your hourly rate.
Instead, quote for a result or a package.
Here’s how to respond to the question “What’s your hourly rate?” in 4 steps:
- Dodge the question completely and say:
- “I want to check I understand what you need first…”
- Then read back to them a summary of their problem/goals and check you’ve got it right:
- “As I understand it, you want to… [their-problem/goals]”. Is that right?”
- Did they say “yes” or “no”?
- If they say “yes”, move to the step 4
- If they say “no” then ask them to clarify and read back a new summary
- Then you say “I can help you achieve [their-goal]. My price is [your-package-price]”
It’s best to deliver step 4 via email when you’ve had some time to digest the project and crunch some numbers. So you could say:
4. “I can help you achieve [their-goal]. Can I have your email address so I can crunch some numbers and get back to you?”
If they push and push for your hourly rate you can respond with:
- “I don’t have an hourly rate. I work on a results basis. Tell me what you need to achieve and I’ll tell you what it’ll take”
What do you think?
Agree? Disagree? Say so in the comments below.