Categorically, the single biggest mistake any creative business makes is to lead with price, or, better said, to make it all about stuff and not artistry. I see it everywhere: photographers talking about creating packages, some going so far as to offer a “create-your-own” radio button menu on their websites; graphic designers having a cutesy “place-your-order here” vibe going on; interior designers going with a per room price as their bailiwick; and caterers talking about per piece menus. Yuck, yuck and more yuck.
Some of you might say, what is the problem there? Every potential client wants to know the price and has a budget so we have to tell them our cost if we are even to be considered. Yeah, no. Yes, your client has a budget from which you may or may not be able to do what you do. If you can, great. If not, not your client. The rest is noise.
Here is the problem with making price the leader: you run away from value and you make the irrational rational. Value in any creative business is the artistry, the creative process to get to art, it is NEVER the thing itself. The price to artistry is what you say it is. But when you start with price you skip over this value and land squarely on stuff. And in the land of stuff someone is always willing to do it cheaper.
A very fun example to make my point: you go to Jeff Koons and say, “Hey, Jeff, I want you to do a big flower sculpture for me, what’ll it cost?” Do you think Jeff says, “Well, let me see, the metal will cost a million dollars, it will take me and my team about six months to do and all the other materials will be a million dollars, soooo how about five million?” Or do you think he says, “Sounds great, we will get to price soon enough, but let’s talk about flowers first. Why flowers?”
Since his Tulips sold for $33.7million last year to Steve Wynn, my guess is Jeff does not really care about stuff, his price is what it is, stuff included. Also just guessing, but I am sure it is far more interesting to Jeff to talk about art first, money second.
When you lead with price, the air leaves the balloon in a hurry. There is simply no place to go other than down the negotiating hole. And for those of you who say, “Well I do not do that, I make sure my clients understand what we do for them and what they are getting for their money before I talk about my prices.” Hmmm. Maybe not.
Here is a quick test: If the first part of the conversation with any potential client is to get the details of the project, welcome to price. No matter what happens afterwards, you just sent the message to them that you are getting the specs so you can tell them what it will cost. The rest is fluff until you “get down to business”. In the name of “real” business you leave your artistry, the need for meaningful relationship, at the curb.
Take a Zappos challenge. Instead of seeing how fast you can get to yes, see how long you can spend getting to I hear you. Of course you need to know the details, just not right away. For those of you who do not know, Zappos prides itself on customer service and actually rewards agents for how long they stay on the phone with customers, not how quickly they move through the process. The record is 10 hours and 29 minutes. Zappos knows that meaningful relationship sells a whole lot of shoes.
Even if you wind up staying with a potential client for a long time during that first meeting or conversation, starting with details sends entirely the wrong message. So what would it be like if you started with, “We will get to the nitty gritty soon enough, but let’s talk about [you fill-in-the-blank] first.” My guess is that, if you have never done it before, not talking about details (so you can get to price) will be almost impossible to do for more than two minutes, let alone fifteen.
Relationship matters more than price, more than stuff, more than anything in your creative business. Start there.
{ 10 comments }
Thanks for the thought provoking article. This is something I’ve struggled with simply because I needed a way to “qualify” my clients to make sure we were in the same ballpark before meeting, not a minimum but I send my starting prices before we meet. I agree that when I have to start with price I miss the opportunity to share my personality and my creativity which is ultimately why clients choose to work with me I just don’t want to go back to taking meetings with clients who don’t have the budget to work together no matter how much they love me and my work. Any additional insight would be appreciated!
This is a great comment Sullivan. The answer is tricky because some will always fish. But the truer, more transparent you are, the more the right clients tend to show up. Also, having a minimum price can set the right tone. It does not make it about price as much as define who and what you are all about.
Its so cut throat in a tight economy because people don’t seem to make the artistry a priority. They’ll pay $80.00 a plate for food that no one will remember but if Auntie has a digital camera…Hey let’s save money there! Its very discouraging and sticking to my guns about my price has left me not working as much. I don’t do packages per say but a flat rate for the shoot (which is on my site so people will know in advance if I am in their budget) then a la carte for how they want their finished products. This also allows them to budget. I understand about keeping my prices competitive without being a bottom feeder. In my experience, as a photographer, you have to be in a certain economic bracket to have better photos for your own portfolio. Its hard to make paper plates look elegant.
I’ve actually strayed from chasing weddings anymore because the reality of it takes the joy out of what I love. I’m turning my focus on more one on one or magazine/commercial work.
This is a great article…but it got me thinking….what would we say instead? If not to get the details to quote on a price, what kinds of questions should we be asking?
Terrific article. Obviously, price is not the only issue for our clients; if it was, they’d all be driving Scions (I do, but I love it….that’s another story….) They will make the room in their budgets for the pros and products that they fall in love with. Our job is to make them fall in love with us, and we don’t do that by discussing the mechanics as our first agenda. That screams ‘order taker’ whether we like it or not.
Excellent points. When you start the discussion by talking about your equipment versus the artistry involved, the conversation will be dominated by price.
Could not agree more…well said, Sean!
I go on so many interviews and of course the topic of $ eventually comes up, always at the end: “what are your fees?” I try to generalize that each project is different, but is split into both creative (part 1) and operational (part 2) fees. At this point, they ask for a proposal: our letter of agreement basically. Nine out of ten don’t dignify a response to the follow up, even after I loop back. I should get better at weeding them out from the start, but I just think it’s unseemly to ask during the first phone inquiry if someone can really afford us without the risk of shaming them.
How honest should we be about our pricing when asked directly and our goal is to waste as little time as possible?
I exercise this practice on almost every new creation. I create the picture in my mind then physical create it, then say how much can I charge. When dealing with clients I relay to them that although I know there is a budget please allow me to create something beautiful without holding back and if it’s to much we can work our way through it. You never know, what you create might even be under budget. Let your creative juices flow, the money will follow.
Well done! Thought provoking and encouraging.
Thanks!