The time has come. Your client finally popped the question:
“So what fee do you charge?”
“How much does it cost?”
How to ask a client to pay $5MN with confidence?
You don’t want to scare clients away. You made a lot of effort to get the conversation to this point. Yet your service is not cheap. And the diamond is a one-of-a-kind piece, you really don’t want to settle for under $5mn.
This is a nerve-racking moment.
Don’t worry, it’s common
Neither do HNW clients have a conversation like this every day.
I have seen and helped many professionals to learn this skill, including many #1 rainmakers from top luxury brands who later joined Harry Winston.
When they just joined Harry Winston, they soon realized that even the cheapest item here is 10 times what they used to sell. They were intimidated and didn’t know how to ask for a high-ticket price.
After all, million dollar purchase clients don’t just show up every day.
You can learn it and make a killing at it
If one of these situations describe you:
- You sell extra high and priced products
- You charge a premium compared to the industry average on the fee
- You just started selling an ultra high-end product or offering a service for high-end clients
Then follow these 6 steps. I will help you gain the knowledge and the courage to give a high-ticket price, without risk losing the deal.
You can become an expert at asking for million dollar prices.
Step 1: Stop focusing on the high-ticket price
Instead, ask yourself these questions:
- What does your product or service mean to this client?
- Why did this client come to approach you in the first place?
- Do you really think the clients are not expecting a high-ticket price when asking?
Identify the type of needs of HNWIs
From private wealth managers, luxury store sales, yacht sales person to auction house VPs, we all help HNW clients meet one of these needs:
- Daily consumption needs
- Ultra high-end consumption needs
- Investment needs
- Social behavior needs
HNWIs have different criteria and expectation in different needs. I will discuss this in a dedicated article,
But in general, HNWIs are either looking for asset value, return on investment, rarity, brand awareness, or meet certain social needs.
For now, just remember:
The HNWIs have their reasons for wanting what you sell. Don’t worry too much. As long as they are still standing, breathing, and conscious after you disclosed your fee or price, you’re fine.
Step 2: Focus on the meaning to the client
Do you truly understand what your product means to your clients?
Don’t worry about price until you’ve done that first.
Maybe to one person, it’s a luxury watch, to another it’s a luxury mansion or a large amount of money. The same product or service means different things to different people.
Translate price to meanings:
- For example, if your client is considering a $100,000 necklace. He plans to give it to his wife for their anniversary. To him, the $100,000 means a happy wife. As all wise men (should) know: happy wife, happy life. This is priceless.
- Another example, if your client is considering a $7 million yacht. He needs it because most of his friends have it, so he needs it to fit in his social circle. To this client, the $7 million means social acceptance. This is priceless.
- If your client is considering having you manage his money. He wants to put his business profits to work and achieve many multiple returns. To this client, the fee you charge means safe passive income and peace of mind. Again, they are priceless.
Now ask yourself, which of the meanings above deserve to be discounted and cheaper? None.
Finding meaning helps get you out of the price negotiation box.
Whether you are selling a service or a physical product, there is a rule of thumb in what HNWIs put money in.
If it’s future value is higher than the value today, it’s good.
This rule is not too much different from that PE firms use to buy companies. Even when Warren Buffett buys tens of millions of stocks, as long as he believes the intrinsic value is higher than what he paid for today, he considers it a cheap bargain.
Step 3: Show confidence and know what you’re talking
A common trait of high net worth individual clients is that they want to work with confident people. People who know what they are talking about.
HNW clients believe they deserve to work with the best.
The value lies in your confidence. Without confidence, the value that you propose will collapse. Only when you feel confident, your client will be confident going with you
Now I will show you how to overcome the fear of losing a client because the price is too high.
Coming up Next:
Feel invited to join the conversation on What’s the #1 biggest challenge you have negotiating with High Net Worth Clients? Hope to hear your thoughts in the comments below!
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Hi! I’m the founder of HNW Academy, I created it to help business professionals who work with High Net Worth clients and entrepreneurs who need to convince investors. I was Global Head of Business Development at Harry Winston Diamonds and was involved in launching HSBC Premier in China.