How to Ask for a Client's Budget

[@williambrady5735]

Mike, I've likewise been in thousands of these conversations, and your breakdown of the process of establishing budget is spot on. What you've shared here is crucial to getting a relationship started right-super solid advice on every level. I've found that clients who are really looking for a successful partnership are grateful for this kind of effort and process up front, as it makes the whole project smoother for them and profitable for you.

[@xavytex]

12:30 I'm a carpenter and I've done that rough price range based on past projects for people who don't have a clue of what a bathroom remodel costs. They don't like the price, but they still ask for a detailled, itemized estimate and never call back. I've tryied charging $200 for estimates and only had 1 client who accepted. In my realm, most people will ask for 3 "free" estimates, even though they have unrealistic expectations in terms of price and then call the contractors crooks because everything seems overprice. What works for me is giving quotes sight unseen for things that are fairly standard and that I can price with a price list (door install, baseboard and casing, tile a kitchen or bathroom). I don't do custom work anymore. It takes a lot of time to design, price and it's risky because it's not standard so there is a lot of things I can overlook. The premium people are willing to pay for custom work doesn't offset the extra work and the risk for me. Thanks for the videos, lots of stuff you put out apply to running a small carpentry business ;)

[@morejanda]

Love this comment. Thank you for sharing strategies that work in your industry. I recently hired a general contractor to finish the basement of our new house. He asked the square footage and gave us a price range. We were happy with the range, so he came over to do a detailed bid. We liked him and his process and ended up choosing them. That process worked well on me in the “contractor” industry.

[@mozaik-inc]

This was insanely valuable. I’ve always kept a close eye on your IG content but you deliver a whole new experience and depth on KZbin

[@morejanda]

Thank you! That's why I'm shifting my primary focus here. I love to get deeper into the content and insights than what the Instagram platform allows.

[@matthewmillette9898]

In some cases, as a freelancer, I really want to know the budget to get a gauge on how this project will go. If I want to take it one or not. The clients budget can be very telling about the success of a project sometimes. Great info as always Mike!

[@morejanda]

People should bid any project without at least asking for the client's budget. You have to know if the opportunity is even worth your time to prepare a bid.

[@anacorreia8058]

As someone in the blue-collar remodeling industry, I’ve found that it’s easy to ask a client for their budget, but people often don’t respect our industry and they see us as beneath them. Even if we ask it nicely, politely, confidently, reasonably… Sometimes they still get offended if contractors/remodelers ask them for their budget, even though it’s a completely reasonable and necessary question. I feel like other industries don’t have it so hard asking that question. They expect us to just shut up and give our price without asking them anything. So I feel like it’s easy to give this advice “to freelancers”, since they don’t have this same difficulty

[@baptistepons]

This is gold! Thanks Michael!

[@morejanda]

Thank you!

[@letschalkart]

Love it! Super cool Michael! I'll never forget that and try to apply them all

[@morejanda]

Thank you! They are good techniques to put in your toolbox!

[@AllAboutHelping]

Oh man! the chevy malibu vs aston martin metaphor was POWERFUL!!! thanks so much for this

[@morejanda]

My pleasure! Glad you liked it!

[@TheThegirlbehindyou9]

thank you for sharing your valuable experience

[@morejanda]

My pleasure to share!

[@elviskent9104]

I'm glad I discovered this channel

[@morejanda]

Thank you! I"m glad you discovered it too! Lots more coming!

[@nickpatel4253]

Some good information. Although, I think when you ask for budget directly after asking some other questions, if the client does not seem to be giving somewhat straight answer for budget, don't try those 'past projects' or 'car' things. It feels pushy and scripted. You want to be genuine and straight to the point. Go directly to rough estimate. That is a good tip.

[@morejanda]

Lots of ways to talk numbers with clients.

[@nickpatel4253]

@@morejanda That is true, Michael. I guess I focus too much on not sounding salesy. Recently, I could not ask a client directly in discovery call about their budget, so I made and sent a client questionnaire document to them with a question about budget buried with other questions after discovery call. 😂

[@austinandriese]

I had this exact conversation with a client and the anticipated budget was half the cost of what I charged. I worked with the client before and set expectations before writing the proposal and they accepted with no problem. Sometimes you have to call their bluff

[@morejanda]

Haha. Ya. Sometimes they are bluffing. LOL. Thanks for the comment, Austin!

[@unamruba5281]

This is gold

[@morejanda]

Thanks so much! 🙌

[@schnittmagier5515]

Thank you for this Video. Really great points to think about.

[@morejanda]

Thank you!

[@ChristineCorey]

Awesome this is so great!!

[@morejanda]

Thank you, Christine! Hope you're doing well!!!!

[@THMXRacing]

This was excellent

[@morejanda]

Thank you!!

[@malinirao]

Thank you so much Mike, these tips are super helpful.

[@morejanda]

Thank you, Malini! So glad you like them!

This information is gold! Thanks Michael 😎

[@morejanda]

Thank you!!!

[@ovispublishing]

Thank you so much!

[@morejanda]

My pleasure.

[@elitesupremecleaning]

Great Stuff!!!!

[@morejanda]

Thank you! This was one of my first KZbin videos ever...haha...it's kind of embarrassing to me no, but I leave it up for nostalgia. Glad you liked it!

[@madhavaarogya1544]

its grate. budget makes the man who involve in project

[@morejanda]

Thanks for your comment!

[@lenismachinesinc.1287]

Great tips Mike! Definitely helpful.

[@morejanda]

Thanks so much! Glad you like it!

[@adarshgoldar]

Absolutely great content 👍

[@morejanda]

Thank you, Adarsh! I'm appreciate your positive feedback!!!!!

[@des7638]

That music during the role play😂😂. Great video tho. Thanks Mike

[@morejanda]

Haha. Ya. That was one of my early videos...trying to "figure out" youtube content. Haha. The vids get better over time. Haha.

[@stewdawg35]

Great video. Pricing conversations can be hard, but when done right they help both parties by aligning expectations and make sure it's a good fit right out of the gate.

[@morejanda]

Great feedback, Stewart. Talking money is so tough for so many people. But if you have a few strategies in place, it takes the fear out of it.

[@nxs6]

What a great video. Good practical techniques.

[@morejanda]

Thanks, Marco! Glad you like it.

[@512banana1]

as a freelancer, i've never tried asking straight for the budget, i'd try to come up with the expected price, imma try doing so after this!

[@morejanda]

It's ok to ask for it. Give it a try!

[@lucasbulhoes5037]

Fantastic work on this one!

[@morejanda]

Thanks so much!

[@chikochiko3538]

great content! Thank you very much

[@morejanda]

Glad you like it!

[@eduardomacaia936]

Usefull

[@morejanda]

Thank you! Glad it was useful for you!

[@bhavikjain088]

Can we use all the three techniques while pitching on the phone?

[@morejanda]

Yes! It is effective over the phone too.

[@alinerdelav]

noooo i didnt see this video on time, i asked and didnt obtained one... but is in rush...side aspect.

[@saifsalahdesignz7043]

Wonderful, short time but reach informations, but I have question " what you think if you want as freelance graphic designer to make rebranding or developing some designs for any project or small business "? Thanks alot about these informations.

[@morejanda]

Hello Saif! I'm not sure I understand your question. Could you rephrase it in a different way and resend it?

[@saifsalahdesignz7043]

@@morejanda I meant some times I ( as a designer ) want to suggest redesign them logos. or develop their brand.

[@MouhamadouDer]

Very interesting !

[@morejanda]

Thank you! Good tactics.

[@RaymondTheThird]

Ok, this was goofy and hilarious

[@morejanda]

Haha. It was in my experimental phase...which is usually always.

[@chevy35c]

Depends on the line of work. My type of sales require me to meet with customers at their house. The way they maintain their house and the cars they Drive and the city they live in says it all I don’t even have to ask. Plus most people aren’t that stupid to be honest they know what you’re trying to get out when you asked that question you’re either going to upsell or you’re going to overcharge.

[@chevy35c]

It’s also a neanderthal way of selling. Now with Internet and social media. You’re almost guaranteed to be putting in a bid with two other companies. Asking that question you are assuming that you are the only one to bid that job and that is also just stupid.

[@morejanda]

Sales requires a tool box of techniques. I suspect that if you are meeting with customers at their house, then you are not selling the same types of services that I sold for 15 years as an agency owner and that my audience of creative freelancers and creative agency owners are selling. I also suspect that my career experience differs greatly from your career experience. Just because the content you find on the internet doesn't apply directly to your career/business doesn't make it "stupid" or "neanderthal" (to use your phraseology). Perhaps it just doesn't apply to you, as seems to be the case in this instance.

[@chevy35c]

Like I said right from the beginning. Depends on the line of work. Right off the bat I said that. Also right off the bat your video comes off as general message not specific to a certain type of sales. Which is why I said depends on the line of work Which is why I said depends on the line of work

[@SouSouHitenice]

Terimakasih

[@morejanda]

You're welcome!

[@eccentricsmithy2746]

Not sure the car comparison is such a great idea. If both are going to get you to your destination, then why spend more money. Why spend more for a Ferrari when the end result is the same. Most dont care about what happens between getting from point A to point B, they just want point B, the end result. So if both cars will get me there, just use the KIA and save some money in the process for other projects.

[@morejanda]

I see your point. Yet, Ferrari’s exist and so do Kias. If all people cared about was getting from point A to point B, there wouldn’t be a market for Ferrari’s at all. I’ve used and had success with the analogy. I keep it in my tool bag for situations where it could apply. In print media, it could be custom die cuts, folds, finishes. In digital media, it could be animations, interactions etc. That’s the way I recommend anyone look at sales tactics. It is a tool bag…use the right tool when you need it.

[@DeanDudey]

I don’t agree with if the project will cost £1500 but the clients budget is £5k so you bid closer to their budget. That’s ripping people off and that’s why most people are reserved about sharing their budget because they all think your just going to price as close to their budget as possible

[@morejanda]

I totally agree. I believe in understanding the client’s budget and scoping the project in harmony with the amount they want to spend to solve the problem in the their business. The price should be fair to the client AND fair to the vendor. In creative services, most vendors are dramatically undercharging for the value they create for their clients (not the opposite). In my pricing book, courses and my other content, you’ll find that I teach pricing based on client budget, market value and production cost. A vendor most understand all three of those variables to price properly. Also, I always share my budget with someone who is bidding services for me. I don’t want them to try and sell me a Bentley if I’m budgeted for a used Ford (or the opposite). That is a waste of all our time. I also believe that in creative services, it is in the clients advantage to spend more on a project, not less. So I don’t shy away from budget conversations and help the client see the benefits of spending more for a bigger scope that more effectively delivers the results they are hoping for. Scope the work in harmony with the client’s budget…not to rip them off.

[@agolferswalk]

This is not a good 🎥 for freelancers, it is a GREAT 🎥 for many different types of businesses. Well done 👍🏼 and thank you 🙏 for an excellent and well laid out process for those that bid projects. 💯👊🏼

[@agolferswalk]

Michael Janda What is the topic of your next video? 🤔

[@agolferswalk]

Michael Janda Sounds awesome. Looking forward to the content and trip video. 💯👍🏼

[@peterwilli8422]

I have been using these 5 techniques and I have a few questions. Example 1) Me: "What is your budget for this range for this project?" Them: "Well, we do not want be priced gauged." ------------------------------------------------------------------------------------------------------------------------------------------------------------ 2) Me: What is your budget for this project? Them: "I have about $3,453." about 1/3 of what we do the work for.

[@morejanda]

Thanks for commenting, Peter. Example 1 response) "I never price gauge. I charge fair market value for my work. Usually projects like this are in this price range $XXXX - $XXXX. Are you comfortable in that price range?" ------- Example 2 response) "Thanks for letting me know. That budget is a bit smaller than our typical pricing. Let's consider reducing the project scope to hit a budget of that size."

[@hal-zeitlin]

I like you

[@morejanda]

Thank you!

[@James-uz9se]

Awnser: don’t ask your client’s budget

[@James-uz9se]

Why would you ask the client for a budget?

[@morejanda]

If you don’t know the budget 1. You may spend time creating a proposal for someone who doesn’t have enough money to work with you or 2. You may leave money on the table by bidding a project below the budget they have in place.

[@James-uz9se]

Michael Janda If you let the client tell their budget they will start low. You put down a mental anchor. Let’s say your price was way higher, there’s more in the potential client’s mind to adapt. But if you put down an anchor first, lets say between 10k (highest number first) and 7.5k they will think 7.5k is a “good deal”. If you let the client tell their budget they might look at the website as a project instead of looking at the added value of the new website. They might say 3k, but that’s just a random number. They will be convinced 3k is a great price, instead of 7.5k...

[@James-uz9se]

Michael Janda I had a potential client with a 7-numbered-business-plan. He wanted to spend 1k-1.5k on a website. He is looking at a website as a product, but I’m selling the added value of the website - value based pricing. Not just a random number made up by a potential client.

[@James-uz9se]

Michael Janda I’m wondering what your opinion is on this