“How do I deal with cheap customers?” This is a question many business owners and customer-facing professionals ask when confronted with customers who question or challenge the company’s prices.
Cheap is a relative term that depends on how much money someone has available to spend. It is helpful to think of these types of customers as having more buying pain than other consumers, so you can be more understanding when serving them. Usually, they have tighter budgets and less disposable income.
How do you deal with cheap clients?
#1. Determine the customer’s needs
Try to determine what the customer wants and how you can give them what they need without sacrificing your bottom line.
Remember that not every customer is going to afford your most expensive services or products—and that’s okay!
Many customers will be happy with your mid-priced offerings. So don’t stress over trying to please everyone; try your best to help.
If you can’t provide what the customer wants or needs, refer them to a competitor who may be able to better meet their demands.
Remember: it’s not always about making the sale. It’s also about providing quality service.
#2. Look for alternative solutions
Understanding the customer’s budget is important, but it’s not always about giving them the cheapest option. Sometimes you can offer a lower-priced alternative without sacrificing quality or service.
If you can’t offer what the customer wants within their budget, let them know and see if there are any other options.
For example, let’s say the customer wants your most expensive service or product. If you can’t accommodate their budget, how about offering a cheaper alternative?
Perhaps you can provide a mid-range service or product. If they like how it works for them, they’ll return to you in the future when their budget allows.
Or maybe you have something on your menu of services and products that will fit their budget perfectly—and now this customer is thinking about how much money they’re going to save by working with YOU!
#3. Offer financing options
The key here is always to help the customer find an alternative solution, so neither party appears nor feels “cheap.” And remember: sometimes, just having someone listen without judgment will go a long way.
If the customer doesn’t have enough to pay for what they need, you can offer them financing options. For example, they can split up payments and pay the balance over several months.
Many businesses allow customers to pay for their products or services in installments, which can help keep both the business and customer happy. Some organizations (especially in the education industry) offer financial aid or scholarship programs for those in need of financial support. And some others organize contests and giveaways as part of their marketing strategy.
Be creative and find ways to help the customer by offering financing options that work for both of you.
#4. Emphasize value over price
Too often, companies put all their focus on the price. This can be a mistake, especially when it comes to dealing with price-sensitive customers.
Remember that your products and services have value—and sometimes, the customer needs some education about what that value is.
How are your products are services going to benefit them in the long run? Make sure to explain the benefits to your customers.
When you emphasize how much value they’re getting for their money, it may help them loosen up their purse strings a bit! This strategy will help you overcome challenges when dealing with cheap or price-sensitive customers.
#5. Be honest and upfront about costs
When dealing with customers, be open and honest about how much your products and services cost. If you know the customer has a certain budget in mind, let them know what you can and cannot do for them.
This transparency will help to build trust between the business and customers, and it may even lead to future business opportunities down the road.
You’ll save time and energy by being upfront about how much something costs and the customer will appreciate that you’re not trying to “sell” them on a product or service they can’t afford.
#6. Don’t let customers take advantage of you
Just because a customer is price-sensitive, doesn’t mean they can take advantage of your good nature. If the customer asks for special deals or discounts that aren’t within your budget, you can politely let them know and offer alternative solutions instead.
Remember that you’re in charge of your business, and you don’t have to do anything that will hurt your bottom line. There are plenty of other customers who will be happy to work with you and accept your regular pricing. There’s a difference between accommodating a customer and letting them walk all over you!
At the end of the day, it’s important to remember that there are many different types of customers—and each one has their own needs. Some customers are willing to pay more for a product or service, while others will do anything they can to save money.
You may even find that the customer who you thought was “cheap” ends up becoming one of your biggest supporters—and best clients!
#7. Accept that not everyone is your ideal customer
It’s important to remember that not everyone is going to be your ideal customer. on’t stress over trying to please everyone. Try the strategies above and see which ones work best for your business.
Focus on attracting the customers who are a good fit for your products and services, and don’t worry about the rest. This way, you don’t need to worry about how to deal with cheap customers.
The best businesses are those who can adapt to the changes around them—and that includes how they deal with customers. Being flexible will help your company grow, even if you have some “cheap” customers along the way!
Learn how to deal with cheap customers
Dealing with frugal customers can be challenging, but it’s not impossible!
Just remember to try to understand their needs, look for alternative solutions, and offer financing options whenever possible. Most important of all: emphasize the VALUE they’re getting rather than the price. This will help build trust between you and may lead to positive word-of-mouth marketing!