Is There Ever a Graceful Way to Ask Clients About Their Budget?
Knowing exactly what your clients have to spend on a particular project comes in handy.
Just being able to lay out the most bang they can get for their buck is one of the easiest ways to make a client happy, provided she has realistic expectations on what she can get for her money.
But it’s often awkward to bring up the topic of budget. Some clients aren’t sure about what they actually have in terms of budget, certain freelancers may feel greedy asking for more information about money and so on. I’ve even had a client at a non-profit tell me that her organization wasn’t setting a budget for the project — that they wanted to see what I came up with — when I knew that they didn’t have a lot of operating capital to begin with.
It can seem like there’s no easy way to ask about budget.
Asking with an Easy Out
I’m one of those freelancers who feels less than comfortable with asking about budget, especially after I’ve talked about rates with a client. So I standardized the process. When I get a request for my rates and other details, I’ll send out some materials about how I do business, as well as a short questionnaire to help me get a good idea of what a prospective client really wants.
The third question on the list is ‘What budget have you set for this project?’ By making it a standard part of a questionnaire, I’ve gotten out of having to ask the question personally which, in turn, feels a lot more graceful to me.
This approach also makes it easier for me to understand what a client wants to get for his budget. It makes it easier to identify clients who might not understand that they can’t get everything for a minimal budget and — since I try to focus on clients who won’t make me crazy — send them along to someone else who might be a better fit.
Practice Asking In Person
Even with the benefits of the questionnaire tactic, it’s useful to be able to ask those awkward questions without flinching. Just like it’s important to feel comfortable always asking clients for signed contracts and deposits up front, being able to ask questions about budget is important.
Most clients understand that we need to ask about money as freelancers.
Most clients understand that we need to ask about money as freelancers. They don’t expect any of their other vendors to dance around the issue of budget. If the company that offers them inventory won’t get down to business with a price list and a discussion of how they can get the most for their budget, most of your prospective clients will move on to another supplier. A lot of the awkwardness is on our end, if only because as freelancers we don’t have the business background to handle those sorts of negotiations.
So practice asking those graceless questions about budget. Make a point of bringing up the budget with every client, even if you’ve already got the information you need in writing. If you can get used to having those discussions, you’ll see that the truly graceful way to bring up budget is just to ask.
You may even get to the point where you can take those clients who are uncertain about their budget and help them set a number that they’re comfortable with and that allows you to complete their project.
Photo credit: Some rights reserved by patrimonio.
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We constantly have to ask clients about their budget in my full-time job, which is great because it’s made me much more comfortable discussing the matter with my freelance clients. It really is invaluable to know a client’s budget in advance, both to help refine the project scope and to determine if taking on a particular project makes good financial sense.
Not all clients have a budget or are willing to reveal one, however. Some people who claim they don’t have a budget really DO have a number in their head, which they don’t realize until they hear the project quote– and it’s above what they intended to spend. To deal with those kinds of clients, I emphasize that we can adjust the project scope to bring the work involved in line with their budget, assuming that their budget isn’t unreasonable.
Helpful article for the freelancers who feel uncomfortable tackling the topic of money.
Personally, I find that asking upfront is the best way. Like that I know what to expect from the client and I can explain them, if their budget is too tight, that what we can produce for them will be more limited. Asking also avoids situations where the client is surprised by your quote and doesn’t understand why the price is “so high” when it fact it’s a normal (or even low) rate for all the work that is required.
I have yet to meet a client who was upset by the question of what their budget is. So don’t be scared! Just ask
Yeah, agree with Tina. I usually tell my clients how much they’ll spend on a site and this helps us all not waste time anymore.If it’s over the budget, we just stop. And 50% upfront is a must. I’ve got myself burnt already so I won’t work for ‘free’ anymore.
It’s all about trust.
Look at it from the client’s perspective. Requesting the client’s budget may be perceived by them as asking for the absolute maximum that you can charge them for the job.
That one fact is the foundation of distrust. It’s just like a car dealer asking you how much you can afford in payments a month.
However, in order to do business with someone, both parties have to trust the other. I ask about the budget level after high level conversation about their basic objectives, but before I invest much time in their detailed needs. The key is – I try to develop at least enough trust with the client so they know that I comprehend their needs and that I want to help them.
I will not deal with a client further unless I get an indication of their hot buttons on price points.
Beware clients who refuse to state a price expectation. They will jerk you around. One prospect kept firing scenarios at me – “what will you charge to develop two case studies like this?” I’d send him a price, get no response on that quote except a dislike for the price, but he would then send me a request for a different job. After two iterations of this I challenged him to tell me what he really needed and he said “I’m trying to see if we can feel each other”. I told him he was wasting my time.
One other thing. The level and scope of job that I will do will often be determined by the client’s price sensitivity. If the client doesn’t want to pay much, then (for example) I expect to be spoon fed the facts to be used for a writing project. If the client is more flexible then research will come as part of the project work.
That was a great help to me as I jump for staff grant writer to consultant. I am always asked about my fees, but it never occurred to me to ask about their project budget.
I would add that if the client is a non-profit, you can research them on GuideStar.org. Non-profit’s 990 tax forms are posted and usually I look at the organization’s revenue, expenses, and top salaries. However, that doesn’t mean that a $500 million agency will spend more than a $5 million agency, but it’s a good starting point.
Good negotiation skills are needed when you are a feelancer.. When you dont value yourself, no one else will value you…
Never sell yourself too cheap or you´ll be a busy fool…
One of the things l like to do is explain up front: “There are a variety of ways of solving this problem, some of which are more fully featured and highly flexible, others less so. But with features and flexibility come price, so I need to know what sort of budget you have in mind. Otherwise we’re both wasting time talking about a proposal you can’t afford.”
What a fantastic way to word it, Scott! I may have to steal this from you
I think the budget question in your initial documentation is good. If the client knows your hourly rate, it’s great to break down your potential project in an hourly/task model , so everything is completely transparent.
A client can easily argue with a high, unsubstantiated number, but it’s more difficult to refute your time estimates.
I also use a questionnaire and those are one of the questions asked. If they for some reason don’t fill out the questionnaire, I may ask, depending on what they are looking for. I’ll only ask once though. I don’t press the question, due to the fact some clients are hesitant to give a budget. I’ve learned to do without that bit of knowledge though.
I usually ask about the budget upfront and just get it over with. I think most people realize it’s just a part of the process.
I still do the freelancing part-time, but when I finally make the switch I like the idea of a questionnaire.
One other thing about asking clients about their budget.
If the client is reluctant to provide an answer on budget, or does not seem to be willing to give any idea at all on what they intend to spend, I will try this. I will make a soft (non committal) proposal on a particular piece of their problem and give them a price for it.
What this accomplishes is this: it probes their attitude about pricing. Their response will tell you whether they consider your prices reasonable, sky high or cheap.
This was a great post with some ideas. I am in the process of designing questionnaires for my design work, did not even think of adding budget, though I usually ask.
I do like Dons comment above. I have also found that clients that balk at the budget question will typically waste my time. In one instance, a local store needed a site, I asked about budget and he did not want to give an answer. After I put everything together and gave a bid price, he decided that he was too busy to move forward. I am finding that information tells whether they will actually pay in the end or not.
Always get that information.
I’ve had a ton of luck using my website as a budget jumping point.
I have my basic rates online. When it’s time to talk about money, I go straight to the page and show them my rate: “This is my usual rate for a project like yours.” Based on their reaction, I can make an educated decision about their money situation and pad the situation with a bit of negotiating.
In the past, I’ve asked people their budget, but more often than not, as a business, they’re expecting you to have a price…despite the fact that it’s never as easy as it sounds. Most of my clients have reversed it on me and asked me what my rates were.
If you’re right there in person, you can show them the rate and then come to an agreement. It’s not uncommon to have to pull your rate down but I’m often surprised at my customers’ understanding of those costs.
I also use a questionnaire for asking the client’s budget, but you’d be surprised how many times the client skips that question or writes “I don’t know”. I even had one client write “I don’t know what a website costs. You tell me.”. It’s very frustrating bc it could save everyone a lot of time if I knew they wanted to spend $100 vs if they wanted to spend $5,000.
Asking for a range instead of an exact budget number can also help you get an informative answer without freaking out the client.
I used to be absolutely inundated with tire-kickers and penny-pinchers until I began to do two things: 1. Raise my rates; and 2. Quote them up-front. When I raised my rates to a level commensurate with my experience and the actual value of my products and services, instead of trying to beat everybody on price, my business TRIPLED. When I began to pair that with up-front, no-nonsense package pricing instead of a vague hourly rate, my closure rate also increased dramatically.
I try to get the money question answered within the first five minutes of a conversation with a prospective client. I quote my most popular package rate, and then explain that I’ll put together a more accurate quote based upon my initial consultation. The penny pinchers will end the conversation quickly if they are only looking for the lowest price, and the tire kickers are dissuaded from trying anything underhanded through my brief explanation of how the contract works.
Someone has posted here that it’s all about trust, and that the budget question can be misconstrued if the trust isn’t there. That’s exactly right, and that trust is founded upon my client’s understanding that I will never quote one price and then nickel and dime them to death. They know that there are never any hidden fees or ‘gotcha’ charges.
In addition, I take care of my clients knowing that it is considerably less expensive to work with your existing clients than to pursue a new one. I reward them for their trust in me, and they respond through continued business.
As someone who works both sides of this issue as both a seller of services and a buyer of services, here is my question. I come to you and give a scope of work that you mentally estimate should price out at $4500. I tell you my budget is $5000. What price do you quote? What if I said my budget was $10,000? What is the price then?
Isn’t this like when you go to buy a car and the first thing the salesperson asks is “How much are you looking to spend?” If you tell them, then that’s what the car will cost.
As a buyer of services, I look for providers that provide some level of pricing upfront so that I know in advance if I am in the ballpark. I don’t want to waste your time if my budget is way below what you can provide the solution for.
Don’t you just assume, as a consumer, that if someone asks you what your budget is, then that is what it will end up costing.
I am by no means trying to attack anyone here with my comments. I am just trying to point out how the client might view your question about budgets.
FWIW, I recently watched a video with web designer Bill Erickson at wpaustin.com and he said the first thing he does when a prospect contacts him is tell them that his minimum price for a site is $1500 and then he includes some referrals to other options if that price is too high. Seems like that just saves everyone some time.
I forgot to mention in my previous comment another major trust-builder that really helps when you are discussing budgets. I consult with the client about their revenue streams instead of directly asking how much they are willing to spend right now. Usually the questions are something like this:
1. What is your best present source of revenue? How did you acquire it?
2. What is your favorite customer or client? Tell me all about them. How did you get them? Describe the circumstances. What makes them the best?
3. What investments have you made into your business in the past five years? What has worked, and what hasn’t?
My philosophy is this: if it isn’t broken, don’t try to fix it; but if it is broken, don’t try to patch it together with Scotch tape–fix it right so you don’t have to do it again later, at a higher expense.
If the client is not sure or doesn’t have concrete data about their present revenue streams and best customers or clients, I offer to do a free initial consultation that includes an analysis of such. As a website designer and consultant, my goal is to put together a package that doesn’t hurt present revenue streams while providing a supportive structure for new ones. When I can show my client how investing in one of my packages can provide new revenue streams, help them connect with more prospects like their ideal customer, and give them the tools needed to engender trust that turns prospects into clients, they stop thinking in terms of specific budget limits and more in terms of return on investment (ROI).
I further build this line of thinking by showing them that I’m interested in keeping them as a client for years to come. I do this by building packages that grow as my client grows. If they can’t afford my biggest package right now, they can upgrade as they go, as they need. If they don’t need my biggest package, I tell them up front. I don’t try to sell them something they don’t need.
Finally, I build trust by rewarding trust. If they choose to prepay for a year or two, I have major discounts that reward that trust. If they choose to invest in me, I pay it right back by investing in them.
Jason, your two posts are at the level of “mini MBA” courseware. Just excellent observations and the best comments in the thread. Just saying.
Wow, thank you, Don! I’m sincerely humbled by your compliment. While I have no MBA or even a degree in web or graphic design, I’ve been doing this for 18 years now. I’ve learned the hard way what works and what doesn’t.
I always ask new (and current) clients about their budget. If they are new clients I spend as much time as I need to to understand their project so they feel as though I “get” what they want.
Then we discuss their budget and their project priorities so we can maximize their money.
Clients appreciate you bringing up money so they don’t have too, because it really is #1 on their minds.
Great tip about asking about the client’s budget in the questionaire – I’m planning to use a ‘quote request’ form on my website, and including a buget text field would be a really good idea. Thanks
Like many others, I always ask clients about their budget. For us, it’s a pre-qualifier because, as someone else mentioned, a lot of clients are simply uninformed about how much graphic design work actually costs. If they are looking to spend $100 for a 50 page website including programming, I need to know that upfront so I know not to waste the client’s time. Or our time! If they resist, you can even try explaining that you’re just trying to make sure y’all are on the same page financially.
Sometimes client’s are more comfortable discussing a range with you instead of a flat number. And if they still resist and won’t tell you anything then I find it easier to discuss our range of prices. For example, say “a simple website begins at $3,000 and a more complex website can run as much $10,000 (or whatever your range is.) How does that fit into your budget?” That way, the client knows if they can afford you and won’t be too surprised when your price quote reflects this range.
Finally, I find it easier for me to ask in person rather than on a questionnaire because if there is hesitation, I can usually figure out why based on our conversation. This helps in the closing of the sale when I understand what they are really looking for. A questionnaire will make it easier to ask the question but harder to determine anything other than the exact number. And sometimes that additional information means the difference between knocking the proposal out of the park and losing the client to the competition.
Lindsay
I had lots of potential clients asking for quotations but never received any response back. It is really wasting my time. So I decided to make it clear right from the start that anyone requesting for a quotation to also please include their budget (big and bold at my contact page). Life got a lot better for about a year … until today. I’ve received a quotation request for a website design. I emailed her back informing her to please also state what her budget is (which I have clearly and boldly displayed the reasons at my website contact page).
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And here’s her reply:
Do you not have a schedule of rates that we can work from?
If the budget is 1million, that’s how much u will work towards
If I tell you that my budget is 50 000, you will bill me that amount
if i tell you that the budget is 20 000 you will do it to that amount.
Lastly, if I say 5 000 – you may not even consider my request.
So…that goes to show…that your marketing strategy does not work
for me and we cannot do this project.
Thanks
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Here is my reply:
Dear XXX,
You are correct to say that we do not fit for your company/project. This is how we screen anyone before we decide to accept their project from their attitude and the way they look at things. It helps both sides from wasting their time. In fact, you have already helped saved a lot of time.
Thanks.
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Call me mean. But she’s the kind of client who has no respect for other professionals, so why respect her.
JO,
Sometimes you can’t win them all.
A lot of people think that designers are going to push them around in regards to pricing and unfortunately, that may be true for a few in the community.
As I mentioned above, you may want to put some time into building an (extremely) loose pricelist. What this does is forces you to be ethical in your pricing. It also shows your customers your usual ballpark and gives them a sense of security in that they’re protected from being over-estimated; as this customer has unfairly presumed about you.
In the situation that you just experienced, when the person makes such comments and assumptions about your lack of integrity (which is unfortunate), you can respond by sending your pricelist with something along the lines of:
“Actually, these are our public price estimations. Considering this is our advertised price, we couldn’t charge you an exorbitant amount more as it would be unethical and unfair to our other customers.
BTW, we also believe such practice to be damaging to the industry.
In that respect, we apologize for our colleagues who may have given you the impression that all designers have such unethical business practices. It has truly hurt our ability to be professionals. Moreover, it has seemingly given you negative feelings and assumptions about those like myself who are trying to carry out our passions with true professionalism. Best of luck with your project and I hope that the designer you choose is successful in convincing you that we’re not all swindlers.”
Perhaps this email would have achieved the same message as yours without angering the client (maybe yours made the client more angry?), while also showing that you are a professional. In the end, perhaps you would have received an apology!
I’ve found my company’s pricelist to be a good fallback on price-related issues.