Gentle Bamboo Solutions

Better to have and not need, than need and not have

Hi,

If you call a car dealer and ask for a test drive, it is guaranteed that they will send the highest end, fully loaded car. They let you see and experience all the luxury features, and make sure that you feel a sense of loss if you buy a lower end car. Loss aversion is deep-rooted human nature. We often spend just a little more to buy things with features that we don’t necessarily need, just to make sure we don’t miss them and regret later.

This is often rationalised as "Better to have and not need, than need and not have". It is a very important sales and marketing idea to understand as you build your freelance practice or small business.

When someone asks for a price quotation, always send three offers. The highest cost one with the maximum value for the client. The second one should still provide as much value as the previous one, but less personalised touch. The lowest priced offer should still exceed original expectations, but should look clearly less worthwhile than the other two options in that list.

One more thing. Do not order the list of offers cheapest first. Let them read the costliest offer first, and then see what they will miss if they go to the next price and the next one after that. If you are used to sending quotations and then haggling with the clients about prices afterwards, this idea will help reduce that discussion a bit too. You can suggest them to pick what they want from the list and there is less need for negotiations.

It’s easy to keep sending quotes and hoping for the best. Try this technique and maybe it’ll help increase the chances of conversion.

Vroooooom vroooooom,

Abhilash