"That is more than we expected." In a small company this sentence often triggers an immediate reply: "I can check what discount we can do." It feels friendly, but it tells the customer that the first price was negotiable and it cuts your margin before you know what the objection was about.
This article gives a short routine for the conversation. It is about the talk itself. For the rules on who may give a discount and how to record it, see who may give a discount, how much and how to record it. For what to learn when a customer has already said no, see reviewing lost quotes.
Step 1: Find out what the objection really means
"Too expensive" can mean several different things:
- the price is above the customer's budget;
- the customer has a cheaper offer and does not see the difference;
- the customer does not yet see what they get for the money;
- the person you are talking to must justify the cost to someone else;
- it is a negotiating habit, and they would pay the price if you did not move.
You cannot answer all of these with the same reply. So do not reply with a number. Ask first.
Step 2: Ask three questions
- "Expensive compared with what?" It may be another quote, last year's price or a figure they had in mind. Ask to see the other quote if they are willing to share it, and check whether it covers the same scope.
- "Is there a budget you are working with?" A figure helps you see whether a smaller version is possible. If they cannot say, that is also useful: the price may not be the real issue.
- "What matters most to you in this?" Speed, reliability, a named person, support afterwards, low risk. Their answer shows what to protect and what you can trim.
Listen to the answers and write them down. Do not argue in the middle of this. People who feel heard often relax the objection themselves.
Step 3: Decide whether to hold the price
Before offering anything, decide with one honest question: is this price right for the work?
Hold the price when:
- it reflects real cost and a fair margin, and the lower price would make the job unprofitable or force you to cut corners;
- the cheaper offer leaves out things you include, such as support, testing, documentation or time for corrections;
- you have the capacity and several other customers pay this price.
Be ready to move when:
- you mis-estimated the work and the number is too high;
- the customer wants a different, smaller job than you quoted;
- the job has a strategic value, for example a first reference in a new area, and your owner has agreed that in advance.
If you hold the price, say so calmly and briefly: "I understand that it is a lot. This is what it covers, and this is why we price it this way." One clear reason is better than five. Do not apologise for the price and do not criticise the competitor.
Step 4: Offer something other than a lower price
If you want to keep the deal, change something other than the price for the same work. Choose from a short list and agree it in advance with whoever owns pricing:
| Option | Example | What to check |
|---|---|---|
| Smaller scope | Start with the two most important parts and add the rest later | The smaller job must still work on its own |
| Phases | Split into two invoices or two stages | Each stage needs its own clear result |
| Different timing | A later start or a flexible date that fits your capacity | Do not promise dates you cannot keep |
| Payment terms | Part payment on delivery or monthly instalments | Your cash flow and any extra cost for you |
| Longer commitment | A lower monthly price for a 12-month agreement | Only if you can really deliver for that long |
| Lighter service level | Slower response time or fewer included hours | Write down exactly what changes |
Each of these gives the customer something real without teaching them that your price moves when they push. Put any change in writing; the one-page proposal is a good place to show the new version. If the discussion is about a fixed price for a software job, what goes into the number and what stays out helps to explain it.
Step 5: If you do give a discount
Sometimes a discount is the right answer. Then:
- ask for something in return, such as a faster decision, a longer term, a reference or a larger order;
- state it as a one-time exception for this job, with the reason, not as a new price;
- stay inside the limit set for your role, and ask the owner before going further;
- record it, so that the next quote starts from the real price.
Where AI tools fit in
An assistant can help you prepare: list the likely objections for your service, draft calm one-sentence answers or turn your notes into a clear options table. It cannot know your costs or your customer. Do not paste in confidential quotes or personal details, and read every draft before it goes to the customer.
What to do this month
- List the three price objections you hear most often.
- For each, write the question you will ask first and one sentence explaining the price.
- Agree with the owner which of the options in Step 4 you may offer on your own and which need approval.
- Add two lines to your quote notes whenever a price is challenged: what the objection was and what happened.
- After a quarter, read the notes. If the same objection keeps appearing, the problem may be how the offer is explained, not the price. A pricing page may help.
This is general guidance for small businesses, not legal advice. Never agree prices with competitors; set your own.