Here’s my process when interviewing a new (prospective) client:
- I conduct my Client Interview Questionnaire. This is a list of questions I’ve been adding on to for the past couple of years
- I try to get into my client’s head and see how their business objectives can be achieved through my design and technology solutions. Here, the prospect usually gets more confident about the project and starts listing out concrete requirements for the project.
- We talk about budget and scope and I get back to them with an estimate which we use as a statement of work
I’ve been fairly lucky with all of my clients as most have understood the amount of work is involved in web. However, once in a while, I get those prospects that at first seem to understand a good budget for this type of work, but in reality have grossly under budgeted their project.
In these situations, when we get to step three of my initial client interview, their budget turns out to be something along the lines of “none” to “a couple of hundred dollars”.
Not something a web shop would like to hear. These clients usually have change requests by the boatloads and have scope creep trailing them wherever they go.
One of the Undesirable Clients
Of course you want to say no right away. I have.
Lately, I’ve been saying “no” by up-selling them. Once I identify that this prospect may be a headache, I give that headache a monetary value.
Raise Your Rates on the Undesirables
Up the rate by 25%. Do it. Even after they tell you their budget.
If they say no, it’s exactly what you wanted. If they say yes then….
Up your deposit by 25%. Protect your business.
They said yes. Shit.
Well, that’s why you upped your rate and upped your deposit. If you end up having to fire them (another blog post perhaps) you’ve at least gained some value out of it.
By value, I mean money. You know that right
So true. I would recommend that you add 35 to 50% more to your rate to make it worth all the headaches and extra work you’ll have to do.
That’s a great idea actually. I think the actual markup would depend on the prospect but that is a good range to think about for sure
Nice one Conrad.
Only thing I’d add is to qualify your clients before expending your time on requirements and estimate.
Ask them in the first 5 minutes, ‘What’s your budget?’.
Most of the time, companies have a set budget, and whether its realistic or not, the number exists.
In your post your example client has a budget of a few hundred dollars, you can stop the conversation right there and redirect your efforts to something that will benefit your business.
Even if the budget sounds promising at first (let’s say $10,000). As the conversation turns to requirements, you can get a sense early on how realistic the prospect is and whether you need to change tack or end the conversation all together.
Great post brother.
Oh definitely. I think I’ve learned the hard way that I shouldn’t put that question off.
I’m thinking of amending this post with an afterthought that clients need to have the discussion around budget as early as possible as well.