Nov
16
6 Things They Mean When They Say They Have No Money
As a reader of this article, you will fall into one of three categories:
1. People who sell things, or want to sell things.
2. People who are, without exaggeration, destitute and are very sensibly finding free information online about starting and running an ittybiz.
3. People who are financially comfortable but like to wave the I’m-so-fucking-liberal flag. (We know who you are. We can identify you by your screaming about the plight of the poor, while donating less than 1% of your money and 0% of your time to charitable causes.)
If you are in category 3, please read the disclaimer at the end of this blog post before you leave an angry comment.
What if people can’t afford your product?
Every time I create a new product, I get emails from people saying they don’t have the money to buy it. If you’ve been selling anything for any length of time, you get those emails too. Today we’re going to talk about where they come from and how to deal with them.
Scary Proposition: They’re lying to you.
The only people who do not have the money are people who have no money and no means of getting their hands on some. That is a very, very, very low percentage of people in first world countries in general, and a far lower percentage of people with access to email living in first world countries.
What “I have no money” really means:
1. I’ve bought four [things like your product] in the last two months and haven’t used any of them. I’m getting really disillusioned and I’m blaming myself for buying things and not using them. I feel I don’t deserve to buy your thing.
2. My spouse is really pissed off at me because I’ve been spending too much money on the internet/on clothes/on these crazy make-money-online schemes. Your product is not worth making things awkward with my spouse.
3. The last three [things similar to what you sell] I’ve bought haven’t come close to living up to their promises. Now I don’t really trust them, even from you. I think it sounds good right now because I’m excited, but when I actually buy it, I’m going to be really disappointed and mad at myself because I should have known better.
4. My marriage/job/life sucks, and I need some little conveniences to keep me going. (Latte on the way to work. Sending the kids with lunch money instead of lunch. Sending MYSELF with lunch money instead of lunch.) I CAN afford your thing — I do have the money — but if I bought it, I’d have to give up my little conveniences, and I’m not willing to do that.
5. I have another completely valid reason for not buying, but it takes too long to explain and it’s kind of embarrassing. (Examples: I drink too much. I have a feeling my spouse is about to leave me and I need to make sure I have money aside for a divorce and/or alimony. I just came very close to maxing out my credit card, and there’s a big psychological difference between an ALMOST maxed out card and an ACTUALLY maxed out card, and buying your thing would really freak me out.)
6. I don’t want to buy your thing but, for whatever reason, I feel the need to justify myself to you. Saying I don’t have the money feels like an inarguable and socially acceptable white lie. I get to feel good because I said nice things about your product, but I don’t actually have to part with my money.
Those people? Plenty of money. They’re just not giving it to YOU.
People who REALLY have no money do one of two things.
One, they do nothing. They know they’re broke, and they accept that part of being broke is not being able to buy things they’d like to have, no matter how helpful owning them might be. They put your thing on the list of things they’re going to buy when their tax rebate comes in, or they start to save up for it, or they accept that they’ll never buy it. They will not email you, unless they’re sending fan mail.
Two, they will try to find a way. You’d be surprised by how many people do this, and the very creative ways they’ve found to do so.
They could split the cost with a friend.
They could offer to barter.
They could request a payment plan.
They could sell their guitar.
They could cut down on conveniences and luxuries for a few weeks.
I’ve had people offer to get OBS now and pay me double its cost after Christmas. I’ve had people take temporary part time jobs to buy consulting. I’ve had people pay me $50 every pay day until they’ve paid off the cost of Marketing 101.
But an email saying they’d LOVE it but don’t have any money?
Might mean a lot of things, but it doesn’t mean that.
And now, the point of this whole post. What should you DO?
Nothing. Do absolutely nothing. Do not change your pricing, except maybe to offer a public payment plan, if that’s your bag. It is very easy to receive these emails and freak out, thinking you’re charging too much for your stuff. (This is particularly true for artists, crafters and people in tech.)
There is a difference between “I have no money” and “it’s overpriced”.
If they thought it was overpriced, they would either tell you they thought it was overpriced, or they wouldn’t say anything. They would mentally call you an asshole and go about their day. If they say they don’t have the money, changing the price won’t change their mind.
“No money” isn’t about price. It’s about value. They don’t currently see it in your thing, and your thing at a different price will probably not change anything. It might. It probably won’t.
Do not stress about your pricing.
Do not write them back and offer them a deal.
Do not be angry at them.
Do not sit around wondering why they send people like you and me emails like this, but not, say, Steve Jobs. They have good reasons for emailing you, especially if you already know them. They are trying to be nice.
I offer 8 hours of consulting a month, daily task lists and major product discounts to members of the SpeakEasy for $44 a month. Every time I open up spots, I get dozens of emails from people saying they’d love to sign up, but they don’t have the money.
I get at least an email a week from people who say they just LOVE the idea of Online Business School, but they don’t have $397. I suggest they go on the Advance Discount List to find out when it’s on half price, and they don’t sign up. Guess they don’t LOVE it that much.
We have an unconditional 100% lifetime money back guarantee and we STILL get people not buying because, well, they HAVE the money but they’re not sure if it’s right for them.
People will give you ALL SORTS of reasons why they’re not buying. Be nice to them, but try not to pay too much attention to what the reasons are, because odds are, they’re not the real reasons.
* The disclaimer at the end: I wrote about the buyer side of this equation a couple of years ago in Can You Afford It? If you want to get your hate on about how I don’t understand true poverty, read that first and we’ll fight about it there.
Must admit I’ve had a few of those ‘cant afford it’ type emails. When I first started on-line, I did htink…I’m charging too much…then got wise to it.
Nowadays, I ignore them.
Andrew
In my business, where I quote estimates for almost everything, I am rarely told, “We can’t afford it.” It’s more often, “We’ll think about it.” (Original Mark Silver has given me some tips for dealing with that phenomenon.)
I used to read a blog where there was this one person who always commented about how she was so poor that she could do nothing to lift herself up out of poverty. When anyone made a suggestion about free ways to improve herself and her skills (free classes, the library, etc), she would get offended and say we didn’t know what poverty is.
“Not having enough money” is often more about a person’s state of mind than their reality. You’re right, Naomi, that offering people a discount is not going to change their mindset. (I say this having grown up in real poverty – and it was my mother’s mindset, more than her reality, that kept us poor.)
Great insight. Great post.
Charlotte: I LOVE this! You nailed it.
Yeah, I’ve tried to switch my thinking from “I can’t afford that” to “How can I afford that?” I’m currently a college student (who freelances on the side) so I’m definitely not “rollin’ in the dough.” When I want something, though, I usually try to build up slowly for it. I am eyeing Naomi’s new Marketing School ebook though … :)
I have been told, by several of my art group friends, that my work is too expensive. Needless to say I am finding new art group friends ;) I have also observed this occasionally when we do a street fair, the same people who don’t have the money for a necklace or a brooch are the same ones whose children are zooming around on new 4×4s come Christmas time. It’s just not their priority.
I’m your number one reader (I’ve always wanted to say that), and I’ve run into all those excuses. They do make me waffle about my prices, and I’ve waffled a lot in the past years.
I just moved and I need to set stable prices in my new market…soon…by January. Thanks for the reminder; I keep hearing the “poor economy” excuses, while watching people continue spending.
I thought long and hard about lowering my prices. All this past year people would look at my work, look at my prices, wince, and walk away quickly. I knew they were thinking “it’s not worth it, the price is too high.” I wondered whether I needed to lower my prices. I hated the thought of explaining to past customers why my prices have gone down. I put it off and put it off.
Then, finally, this last weekend I sold some work. People looked at my stuff, looked at the price, and either bought it or else told me they were going to “save up” for it. There was no wincing, no walking away quickly. Their actions said “it’s beautiful work and that’s a fair price.” Much better!
I’m so glad I didn’t lower my prices. But man, I came close. This last year was hard.
I’m currently partaking of a very dark stout lager, so this comment may be fueled by the aforementioned savory beer.
You are absolutely 100% on target with this post. As an artist in luxury high end items, I see a lot of people saying they don’t have the money, clearly due to a lack of perceived value. I’m starting to wonder if the root of the whole thing is they don’t feel they deserve to have such a nice item for their home. Almost like it’s “too much” of a luxury.
Despite their enormous TV’s, freakishly large under-built McMansions, and jet skis, they just don’t believe they have room for something that will last 5-10 generations or longer and add emotional content to their existence.
You’re right. We can’t freak out or change price mid stride. There’s no pleasing them until they see the real value of what you are offering. It’s up to us to communicate it, but know that it won’t reach the masses. Thank God for that.
My street has something called the Yonge Street Art Walk, where stores (artsy and otherwise) feature local artists in their windows for a set period of time. It was over a while ago, but one framing store still has a piece that I find breathtaking. I’ve avoided going in and asking the price because the guy in the store is an asshole.
But today, I realized I was going to be leaving the area soon, and I’d hate myself if the price was really reasonable and I hadn’t bothered to ask. So I ask. $2200. (Keep in mind, this happened about 15 minutes after I published this post.)
First thought? I don’t have the money. (Well, in my defense, at least I didn’t SAY I don’t have the money.)
But, given the timing, I started thinking about it, and my own reasons for saying that. Because I do have the money. I just launched a new product, for God’s sake. And I figured out that my reasoning was twofold. One, I didn’t feel right buying art before I bought furniture. Two, if something went wrong and I ended up out of money for some reason, I would regret having spent the cash.
Both 100% about mindset. Neither about bank balance. Interesting stuff.
Back when I still had both a day job and an art career (so, like a decade ago) I often spent the rent money buying work by other artists. Or that expensive out of print art book I just HAD to have, etc. I had two reasons for doing this:
1. Original art is usually one of kind. If you come back later it may not be there and you might be kicking yourself over missing it for years. The rent, on the other hand, is always there. If you pay it a little bit late, well, they’ll still take your money. Maybe you pay a fee. Whatever. You still have that great piece of art until (and after) they kick you out, right?
2. I could argue that people NEED to buy art, but I’m not going to. People DO need to pay the rent, if they want a place to keep the things they spent the rent money on. My point being this… you’re unlikely to hustle, or get clever, or take a second job to buy a piece of art. But if the rent needs to be paid, you will because you HAVE to. So go ahead and get the luxury that you must have and can’t afford. Do it now, and then figure out how you’re going to make the extra money this month to pay the bills.
It worked for me. I had to work harder, but I wound up with great art and books and a cool loft to keep them in.
I TOTALLY get this kind of email — and #4 — the little conveniences — resonated most with me. That’s so something my people do (read: I do).
I’ve always felt like it was that person’s issue getting in the way.
That makes me think– what “but what if’s” can I speak to in my sales letters and explanations that make it feel super safe for my people to buy my stuff.
Not being a marketing maven like you, Naomi, the way I communicate what I’m offering could be a piece of the “I cannot afford it” puzzle.
Could there be a Number 7? “I can’t afford it *right now* because I’m making debt reduction/saving for college/buying a house my current priority.”
Either way, just want to say an Amen! to the reality that “I can’t afford it” (and its kissing cousin “I don’t have time.”) is a shield that covers up the customers personal stories.
Well said.
I like your number 7. What I’ve found, though, is that people in that position generally don’t complain. I think that’s largely because they’re really owning their choices. At one point they decided that X is the most important thing right now, so they’re not losing sleep over missing out on Y.
Maybe it’s the people who don’t have their priorities straight who have the hardest time with this. Because if you don’t know what the hell you’re trying to do, anything could be a bad idea, but anything could also be a good idea. No wonder we read sales pages or magazine ads and have little mini crises. It could be the best decision ever or a horrible mistake and without doing some serious soul searching, there’s no way to tell.
It’s a wonder any of us buy anything at all. :)
Naomi – I decided that you are writing a bible for us itty bizes. One epiphany after another.
Russ – very clever with the bonus thing.
Anyone have an idea how I could implement a bonus scheme in the art biz?
Jerice
Jerice, when I bought James Christensen’s monograph way back when, it came with a bonus print. I was thinking of the concept of bonuses yesterday and thought that maybe something like that would work for my work (buy a painting, get an ACEO or print of a different work, or some such).
Great post, Naomi. I shall remember: I can’t afford it = I don’t want it enough.
I’ve sent a few of those emails — and while sometimes I really can’t afford it (there are only so many luxuries I can cut before I get to things like “food” and “electricity” so anybody’s $400 product is likely out of my price range), often what I really want is reassurance that the $47 that I could spend going out to the pub with friends will serve me better in the long run in the form of their product.
Having found a place in my budget for the SpeakEasy, I have to say I’ve never been disappointed in the value you offer. Sometimes I’m disappointed in my ability to stop running around like a headless chicken and put that value into practice, but that’s not your stuff, that’s mine.
*makes note to go and f’ing read Marketing School and start putting it to use*
Also, I want to say that I have a love affair with your Advanced Discount List — I got OBS for $97 instead of $397 and that made it something I could give up eating out for a month to afford, instead of something I’d have to get rid of cable and, uh, sell a kidney for. XD
Totally guilty of this – though more often than not, I’m using the “I have no money” excuse on myself rather than the seller. Having formerly worked at a larger (200-person?) company on a good sized sales team, I don’t want to open myself up to the risk of being talked into buying the product, whether it’s by a sole proprietor or a Fortune 500 biz – so I avoid revealing myself as a possible sales lead. I’m a huge fan of the little conveniences and truth be told I have enough savings that they wouldn’t affected for the vast majority of things I have a passing interest in. I just can’t (or don’t want to) see the value in spending two bucks on an iPhone app and tell myself that I can’t afford it right now, and then the next day drop almost two grand on a new digital camera.
At least I feel a little better knowing I’m not the only one making these kinds of crazy justifications. Just need to start using it to my advantage now.
I don’t think the justifications are crazy at all. We’re consumers, and we have the right to buy or not buy anything, for any reason. I think the crazy thingis a seller taking us at our word when we say we’re broke. Because usually we’re not.
I buy two lattes a day and there isn’t much that’s going to make me give that up. A really gorgeous iMac on a crazy sale with an open box special thrown in for good measure? Nice idea, but not nice enough to give up lattes for. My much lusted after favorite-to-end-all-favorites Hermes scarf comes up on Ebay for the first time in a year? I’m not only giving up lattes, I’m cancelling my fucking heat if I have to.
As a n00b, I’m facing the other side of this pricing issue. I don’t have published rates for my copy and I’ve been undervaluing myself, and thus (surprise!) folks are undervaluing me. These e-mails tell me you’re doing something right and I have to get on the damn bus already. I want me some of those!
Very, very true. We launched our first consumer-facing product at the end of September, and as my first real go-round in the startup world with that part of the business evolution, it’s been very educational.
It’s not worth $9/mo. I can’t afford it right now. I don’t blog enough to need it right now… Those are the nice comments. Some people are just plain rude about why they’re not going to bother becoming customers, just for the sake of it (far as I can tell). I mean… you took time out of your day to send me that? Really?
I’ve been mulling over a blog post on the money side of things (for a small business, when a startup starts charging for things, etc.), and this post definitely gives me a big piece of the puzzle. My thanks. :)
I thought quite a bit about lowering my prices. Especially after a particular art and wine festival where every one else was selling stuff but not me. I changed my mind pretty quick when I saw people who still wouldn’t buy a large piece of work for under 100 bucks (the artist did it more as a hobby and just didn’t want to take anything back home with her so she haggled.) I realized then that even though it was an art festival those people did not understand the difference between my art work and something they could pick up at Bed Bath and Beyond. I like my work too much to sell it to people who won’t appreciate it. Even the stuff I don’t like that much. Not to mention this is my “real” job. It’s what I went to school for and it’s how I make a living.
Then again, there’s plenty of things that I want, but I would have to give up the little things that make my day to day life better. Sure I could get those big t.v.s that I lust after in Best Buy, but I would have to save up a year and that year would be with out books or with out going to dinner with my boyfriend. I could have cable tv, but then I wouldn’t be able to dye my hair. If I need books and dinners out and hair dye to make my life a little better while every other penny goes into my business, then all that other stuff can wait. And like someone else said, that’s all just someone’s priorities and not anything personal. It’s definitely no reason for someone to drop their prices and therefore their mental value of what their work is worth.
That’s why I make post cards, small prints, and other merchandise w/ my art work available. If they really love something and truly can’t afford it, they can afford one of the other items and still enjoy my work.
Can I just say I LOVE THIS POST!
Its often very confusing for people to dissect the real issues behind the “buying obstacle.”
The excuse list is dead on and now we actually tackle many of these emotional limitations in our sales copy. Jury is out if it’s any more effective…but at least I have the sensation it’s eliminating the tire-kickers.
thanks so much for a brilliant post. I’m sharing it with my team so they can rest assured…its not us…its human nature!
Melanie Benson Strick
Get Real Catalyst &
CEO Success Connections
You hit home on this one. I have a local service business, as well as, an online business and I see this much more in my local venture.
I have learned to laugh about some of the excuses I get from people. It used to frustrate me when they claimed not having the money and then watching them drive away in a Mercedes Benz (I guess that’s where they spent all that they had, instead).
Reading this post and the comments made me realize there’s a lot more meaning behind phrases like “I can’t afford it.” I feel even better after reading this post.
Thanks for all of the great content.
I’m loving this topic. When I was starting out as a copywriter, I used to get all,Oh-you-can’t afford-it?-Let’s-see -if-I-can-work-with-your-budget-y with prospect. Disclaimer: came from nonprofit background. Was a teacher, for God’s sake, and then a manager at a third world development organization. So I had empathy up the puhtootie.
But I soon realized that when i I discounted my services, the users (abusers) would always try to talk me down even further. AND I felt so rotten doing the work, so resentful, that I wanted to puke all over the copy. Which would have made it smelly and not too presentable (unless I emailed it. )
These days, I send prospects on their way regularly. Try so-and-so. She might be a better fit fit for you.
Naomi, you have helped many creative professionals with today’s post. Thank you.
Nowadays, I’m over this as well. If someone can’t afford my services then they need to find someone else. We can’t target the entire world.
Everybody has the right to choose if they want a product or service or not. If they decide against it, that’s fine and their right. But it’s not fine to expect others to lower their prices to accommodate the person who says they haven’t got the money. Fair enough, we’ve all been there, but we need to be realistic as well and not expect others to change their pricing just because momentarily we are out of pocket or decide to buy another thing instead.
Isn’t it funny who often we look at something and say “I don’t have money for that” and then when something really tempting turns up (or something with a REALLY convincing and compelling marketing) we all of a sudden are able to put it on the credit card, lol.
We are probably all guilty of that. ;)
How about #8: Too busy implementing what I already have. Takes time to integrate all that stuff.
#8 is a great reason. So great, in fact, that I think people should feel totally comfortable giving it instead of playing the cash card.
I admit making this excuse. But, it’s been when it’s either the product or the bills. Bills must come first, unfortunately. At least short term. I like to dream about the day when I can buy all the products I want. I also admit I’m pretty picky when I buy. I only buy things that I really feel I need and am not easily persuaded. So, I get it.
I think the best one I’ve heard was, “I don’t have the money for a website because I want to buy my wife a new car.”.
First thought was, “Well, at least he’s honest.” The second thing I actually felt was relief. Because I don’t really want to work with people who value a new car over their business success. That tends to set the project up for failure before it even starts.
I’ve never felt that it’s my job to convince people they need to buy something. They are adults and they know when they need it (sometimes after feeling a little pain, lol). I’ll be there to help those ones when they’re ready.
Wow- I love juicy posts on pricing. Lots to think about. And I love your advice- when you get those emails, you’re really not supposed to do anything! Don’t freak out! I know it is super hard for the people in the helping professions, but don’t do anything. I get those emails too, and I always wonder, “why are you telling me this? If you don’t want to/ can’t buy it, then don’t!” Perhaps they don’t see the value. But my gut is that they do, else they wouldn’t bother emailing me. Pricing is so psychological, for everyone.
“why are you telling me this?”
My thoughts exactly. As a customer, the thought to tell someone I’m not going to buy their stuff has never ever crossed my mind. Why bother? Nobody wins by doing that: I lose time making up excuses (quite likely feeling bad about lying on top of that) and the seller will end up with a bad feeling as well.
Thanks for the insight — it’s helpful to feel not-so-alone in this internet-biz world.
I don’t know what category my experiences would fit into, but this happens quite often so I would like to share.
A prospect begged for a discount, so b/c I used to be a push-over I quoted a custom blogsite design for, say, $700. After getting the price, formerly-excited-prospect hems & haws and ends up giving me the “too busy right now, must postpone until things slow down” speech. Cool. Fast forward 3 weeks and I see they have DIY’d the blogsite themselves (and it looks VERY DIY) — I wonder what about the cost was so scary that they went to all the trouble to attempt to build the site themselves?
Now, I’m all about self-empowerment & I support my clients learning the ins-n-outs of coding. However, said prospect charges $300/hour for coaching services. SO… did it take them under 3 hours of their own time to create a website? Probably not… so in essence, the one-time $800 fee was probably a lot cheaper (and easier) then doing it themselves — but I’m sure they don’t see it that way.
So where do you classify people who thing they can do it themselves better-cheaper-quicker-easier? I don’t even bother with them anymore (I know my value far exceeds being just a code-monkey) but I wonder if others get this same run-around?
Oh, I see I said two different prices in my example there… I swear I don’t do that to my clients. lol
Thanks for recognizing that there are some people out there who are genuinely broke and want to be part of what your doing.
I’ve spent most of this year in a bad financial situation. I can tell so many stories about creative budgeting, skipping meals and crying because I didn’t know if I would ever get out of it.
Earlier this year, Dave Navarro gave me some advice. He said leverage the hell out of what I had.
So I did. I’d email people saying the aussie dollar had tanked (which it had) and ask for a discount. I’d request review copies. I’d barter. I’d mention people on really big blogs. I hustled like mad to be able to provide enough value to exchange for a copy of the product.
And now – I have money. Not a lot, but enough to afford little luxuries and as many entry level info products as I can review.
I do want to say that if you treat a poor client nicely, when they have money they will be so grareful. About 6 months ago, I asked Havi if she did review copies. She said no, but sincerely thanked me for wanting to spread the word. :-) Guess who will be ordering most of her products as soon as she gets a hefty aff payment?
Now I’m at the pyschological part of purchasing mid to high level info products. And in most cases, i could afford it if I did a lot of financial juggling. I just don’t want to as I’m not in the right mindset right now. And thats fine. ;) I’ll just have to figure out ways to be strategic in a new demographic.
I love this post! It will (hopefully) be a different situation very soon (hey – why do you think I read Ittybiz, right? It’s not all for the swearing & laughs!), but right now, I’m frequently extremely broke. Like, really extremely broke. We’re starting to pull ourselves out of it, which is AWESOME, but you know what? I’ve never once thought about emailing someone and being like “Yeah. I’d totally buy this, but you know, it costs too much money.” I find it pretty freakin’ obnoxious that someone would do that, you know? How does that help anyone involved?
I’m more likely to put something on a list and save for it, or revisit the list in a month when I do have some money and see what I’m still interested in. In all honesty, I don’t really buy a lot of information products; not for the price but just for the fact that I’d rather have an interactive experience. Which is why something like the SpeakEasy appeals to me all kinds of crazy ways and why I just signed up to be on the waiting list.
Sometimes it’s about value, sometimes it’s about price.
The most important thing you said is they really see no value in your product. We all fear the current crisis and, if sane, are watching our spending. The majority of the products you try to sell us don’t live up to your hype or our jaded expectations. Your product doesn’t provide a real value.
When you produce a product that has real value to your customers, they’ll indeed find a way to get it. Until then, take their emails as a sign to divert money from marketing to developing a better product. The polar bears really don’t need any more of your defective ice boxes. Now people in the tropics might take one if if didn’t break down all the time.
Greetings and thank you for your blog (first time here).
Recently, I have changed my awareness about “I can’t afford it”. It is not productive for me or anyone. The reality is that anyone can afford anything, it is a matter of value, desire and timing.
In situations where I truly what something and “can’t afford it” I now tell myself that I “do not have the money at this time” in order to purchase it. That puts me in a situation (for myself) where I go, do I really want/need this or not. If, in fact, I do need/want it, then by saying that I do not currently have the money, I will immediately ask myself, well then when will you have the money or how can you get the moeny in order to have it sooner. This appoach makes me accountable and not a victim.
I have two businesses, Architectural Photography where I have often considered whether or not I should increase my prices (not lower them). My other business is sharing a group savings benefit membership where people truly save money well beyond the cost of the membership. In this case I do not set the pricing. Like you and others have stated here, this one is truly a matter of the prospect clearly seeing the value or rate of return on their investment.
With my photography it is pretty easy for me to show people what I can do for them with my portfolio. With the savings membership, it is my job to paint a clear picture of how they will save money demonstrating the value of what they are about to purchase. It is not as tangible as photographs.
I have an idea that all of us need to think a little more about how we demonstrate value when people are on the fence about purchasing our products, goods and services. Value proposition is a major deal in most people”s minds.
Thank you for allowing me to participate!
Cheers!
I agree, “I have no money” rarely can be taken at face value. Some people are natural negotiators, some are afraid of commitment. Though I often see it as a signal to me that I have not clearly demonstrated the value of my product or service. IHNM usually means IHNM for YOU unless you convince me otherwise. It can be a signal (as many objections are) to “tell me more”.
Then, of course, there is the time when IHNM is a blaring siren that says “this prospect would be a Pain in the Ass client!” Been doing my best lately to turn up the hearing aid and pick up on those sirens.
Thanks for all the good work!
Well, yanno, poverty is relative. Our poverty in the US, even in the deepest poverty, is nothing compared to third world countries.
However, in cases where people plead “no money” I always take it on a case-by-case basis. In fact, I have been embarassingly without funds at times due to reasons beyond my control and knew no one would believe me if I told them why. I don’t ask for help, I don’t buy what I don’t need, and I don’t ask for sympathy. That said, it is darn painful to continue to see the great things I would love to buy but choose not to because there are bills to pay, or current business expenses, resources previously committed, or the whole litany of necessities. As I work on building my business and finding work outside the traditional real estate realm of people buying or selling houses, some people have been very kind as I have promised to buy their book or help them in some way when I can. And I am helping them out of gratitude.
There’s no hard and fast rule about being cashless in a cash/credit driven society. You simply don’t know what people are facing and those who have faced paycheck-to-paycheck situations and are struggling to not struggle but to rise above it are tougher than you may think.
Maybe it’s learning to balance a budget, to understand what’s important, to prioritize expenses. Often it’s not simply 1 person making a decision, it’s a whole family. For those who are educating themselves, educating their families, working to better their lives, those are the people who deserve help. Even those who have no hope of a better life due to inability to learn or being trapped in an untenable situation deserve help though! Case-by-case is how I see it. If someone has never been in their shoes, doesn’t know their character, can’t imagine not being able to go shopping and spend only a pittance compared to others, it’s awfully hard to distinguish who needs help and who doesn’t.
At our church food pantry we see so much, and it’s also difficult to see there who “really” needs help, based on external characteristics like a nice gold bracelet on an arm, a newer-than-mine car (so people have said), or a nicely coiffed ‘do. Still, who knows what has happened? Maybe the car’s on the verge of being reposessed. Maybe the gold bracelet is the last thing they haven’t sold. Maybe their sister coiffed their ‘do. You just never know.
For those of us working hard to build our business or to make ends meet, who deal with job loss, business slumps or health issues out of our control, less judgemental tactics encourage people to listen. And even, to buy. When those people have funds it’s the kinder folks who will reap the benefits.
Short term or long term, love trumps harsh, any day.
I’ll probably mangle it, but there’s a famous story a woman seeing Picasso sketching in a Paris cafe. She asks him to sketch her, and he agrees.
Five minutes later, he presents her with the sketch — and asks for five hundred francs. She says “But it only took you five minutes!” “No, madame — it took me thirty years.”
Much of what I do involves just looking at what people are up to right now, and telling them to remove a bunch of it. Then take that part there and move it over here, add some pretty pictures, a little video, and a couple of demos.
I often find that people are shocked that I expect to be paid so much for doing so little work. I think that might carry over to both IttyBiz products and many of us ducklings that follow the Path Of Naomi. There’s a great book called “Selling The Invisible” that talks about that.
Even if your product is tangible — web design, e-book, graphics — to someone who doesn’t actually do that for a living it looks like a walk in the park.
Pretend a little. Make it look like you’re sweating.
Broke fanboy, here.
I’ve learned to think, “What can I do to get the money, and on what time frame will that happen?” So I dig what you’re saying.
Here’s a #8, “I can totally come up with that money, but not that fast. So I guess I’ll just buy it at full price later.”
If there’s a time limit it’s hugely different. I can come up with $400 in three months or so if I eat a lot of rice. I can’t do it in two weeks.
Hell, when Navarro’s Mastermind course was at it’s initial advance discount level I wanted to buy it ’cause it was really ridiculously cheap. But by the time I had the cash the five day time limit was up and the price doubled. Couldn’t do it.
(I wound up getting it at the $97 level, but only because his servers crashed or whatever and he extended the deadline by one day. Had that not happened, I’d have been, well, a day late and a c-note short. I’d be saving for that now instead of using it.)
BTW – never occurred to me to ask about a payment plan. I’m doing a bit of budgeting this week and will keep that kind of thing in mind.
Hey Naomi,
This is an absolutely killer post! I was tipped off by a friend of mine and tweeted it out (@mikestenger) because I liked it so much.
You covered some really great points and I totally agree with not wasting our time in these situations. A lot of business owners have a “I want to please everyone” mentality when the simple fact is, it’s impossible to please everybody.
The best you can do is provide great value, know that you’re being authentic and honest when marketing a product or service to someone, and that you’re pricing it fairly and not overcharging by a sh*tload if you know what I mean.
Some people will “say” they can’t afford but most times, yeah, they can, they just use a number of excuses and reasons, one’s you expertly displayed in the post.
Those who say they can’t afford it, if you waste your time with them, you’re wasting time by not talking and interacting with people WHO CAN!
So while you may be losing business by those who supposedly can’t afford it, you can make a heck of a lot more by getting in contact with those who can, and those who are genuinely more qualified for it.
-Mike Stenger
Naomi,
Oh. My. LordYes.
It isn’t the not affording. Heck there’s lots of stuff I can’t afford. It’s the need to *tell* me you can’t afford it.
Always my top sign that you really can.
Thank you thank you, you took the words right out of my mouth. And then said them way better. Love it!
Regards,
Kelly
Many of my friends aren’t in a very good financial position right now so I could certainly understand if some folks are hesitant in spending any cash.
For some reason, some peeps feel obligated to ask for something when they have no intention paying for it. Instead of money, from time to time, they could probably provide an offering in exchange for what they’re looking for online. That’s way better than playing the “can’t afford it but please help” card.
Haha,
I worked in Sales for a number of years and can definitely relate to this.
It’s funny becuase it’s just classified as another form of an objection. The LAST thing you should ever do is change the price of something.
I would have said that it’s good people are even emailing you. It means that they are insterested.
If your new and your product hasn’t sold that much yet, these types of emails are a good sign. You can use them as a way to modify the way you market and handle objections, not to figure out your pricing plan.
One of the biggest shifts for me around money was when I stopped saying (and thinking) “I can’t afford it.” Instead I said “I’m choosing not to buy this right now.” That one thing didn’t shift the bank account but it did shift how I thought about it. Rather than feeling totally disempowered (dare I say victimized), I developed a mindset of choice which was totally empowering.
As a business owner, I don’t mind helping people out when they really need it but I really, really mind when they don’t appreciate it. I used to give copies of my book, ‘How to Survive Your Grief’, away to people who were truly needy, and I can’t think of a single one who ever thanked me. Don’t do that anymore.
Susan
One way I’ve sometimes handled the “can’t afford it” customer is to consider an exchange of services. I run a business where I not only offer services I need to hire others to provide them and I deliberately developed a customer base of clients I want working for me.
I understand not feeling like you can justify paying for something you want but don’t need. An exchange of services can often be a win/win solution to their lack of finance, but only if you aren’t running short on time.
Of course, even so, you have to beware those customers who are saying “I can’t afford it” but really mean “I want a handout”.
Augh, I have a friend who will constantly gripe about how she has money troubles and that everything is too expensive for her and how she constantly has to support her brother and herself to the salespeople and employees. She’s a sweet girl but it can be so embarrassing. I don’t know what she is expecting from it; does she just think she’ll get free stuff that way or something? I always feel bad for the employees who deal with it. LOL
I suspect it’s not that they don’t love “it” enough so much as they don’t love themselves enough.
We are all likely guilty of lying about money/affordability/budget at some point in our lives. Mostly, the pain comes from lying to ourselves about it. Swinging from constriction/restriction to overindulgence/head-in-the-sand; not wanting to take responsibility for ourselves, our money, our lives…it’s an ongoing, in the best of cases evolving, process.
I agree with you not to consider people’s excuses as market research. It’s their stuff. AND in that case, it tells us a lot about them.
thanks for this blog!
I love your point about doing absolutely nothing!. Let it go. Move on with business. I’m not going anywhere–and if the prospect changes his/her mind about ‘not having the money’–they know where to find me.
This is more or less how I operate. I’ll put myself out there, but I’m not pushy about selling my services. And I don’t lower my prices. Like ’some other Naomi’ said above: “They are adults and they know when they need it.”
Talk about a timely article. I included this little blurb in my weekly newsletter:
***************************************************
Why discounts are disastrous and bonuses beneficial.
Giving a discount is a favor granted by you to the buyer. But a
bonus has to be earned.
That is a huge difference.
Once you cut your price, you psychologically set a new cost
position in the buyer’s mind. Next time the discounted price is
the one they compare with.
A bonus has the opposite effect. The buyer feels good about the
sale, having won the bonus, but your price base hasn’t been
eroded.
Whenever possible, sell a sale with a bonus, to the benefit of
the buyer, rather than accept a discount, to the detriment of
your company.
***************************************************
I take the same stance on ‘free trials’. I tell new clients, “I am not going to TRY to work with you. I am committing right up front, right NOW, to give you my very best. I will expect no less from any client I decide to take on.”
It’s called posture. It tells my potential clients that I am a leader they can follow.
Of course, the tire kickers will walk out thinking I’m an arrogant SOB. That’s THEIR problem.
All the best from Toronto,
Russ
Wow, Russ. THAT. IS. AWESOME. What a great observation and tip! I’ll have to try this out.
Totally checking out your blog now.
How is she on the internet if she’s so poor?
Gosh.
Great article, and Russ you made a really good point about discount versus bonus.
“3. People who are financially comfortable but like to wave the I’m-so-fucking-liberal flag. (We know who you are. We can identify you by your screaming about the plight of the poor, while donating less than 1% of your money and 0% of your time to charitable causes.)”
I just love that description. I wrote a blog post about the same topic, but it isn’t due out till Friday.
Cheers,
Oh yeah – I get that too. When I started with my first ebook about 10 years ago, those emails would seriously shake me. I’d try to work things out. And the people who were asking for a free copy because they were somehow pitiful… I’d even try to work out something for them too.
But it always troubled me that most of those emails sounded so angry and resentful. Then one day I finally got it. As you say, it wasn’t ever about money. Not at all.
What it was, I’d written my sales copy just well enough to make ‘em want it, but not well enough to push them over the hump. They were aware at some level that I’d stirred up their desire but hadn’t had the balls to lead them all the way through to action. The cause lay with me, not with the price.
At that point I started working harder on my sales material, and now I feel better – can’t speak for the prospects, though, since I’m still getting the same letters.
So now I just figure if I’m selling everybody who stumbles into my site, my price is WAY too low. My price SHOULD be a kind of qualifier, a hurdle that only lets in those who earn it.
Cheers from warm and smiling Thailand,
Charles
After reading this post, I considered charging people for the ability to read my blog. Then I realised that I didn’t have the technological knowledge to do that, the energy to Google it or the userbase to profit from it. Thank god, because it’s a stupid idea. Negativity sometimes comes in handy.
(Good post though.)
This is an amazing post Naomi and it speaks well for all businesses.
I’ve learned in the creative world that you should NEVER lower your price but rather raise it over time! Even with some old/’priceless’ pieces. Sure you get better at your work over the years but if you become semi-famous then even your first pieces might fetch more due to the richer story to them.
“No deals”: just ’cause it’s different or ‘not with the times’ doesn’t mean it’s crap. Will the real Mona Lisa ever end up at a garage sale? I doubt it.
If they won’t buy it, someone else will. These other people (the customers you really want) will see the true value in the item; the story and time (blood/sweat!) it took to make the piece. They’ll be all over it. And you’ll know your creations are in good hands.
I really enjoy reading blogs like yours; I completely agree!
I gave in to a sorry story once and made a deal. Soon I was swamped with more requests. I learned my lesson–its a business.
I know it is hard for creatives to set prices because they will always be too high for some people. Same for consulting work But do some checking, set your price and move on. Do all the nice charitable things you want but don’t compromise your business.
Great discussion!
I work for one of the major banks in Canada and before working there, I never realized the things that go on in the background. The people wanting service charges reversed for no reason, the people wanting money for no reason other than the fact that they had none.
It is out rageous. So I can totally see it all. I am trying to make time to get my ebook out the door soon, and hope that I get people that buy it instead of negative activity. I plan to offer contests of free copies but thats that right.
I just read this post (cleaning out the email inbox) and you nailed it right on the head. I get the occasional “I don’t have the money” emails, and I always try to let them know what they can do to save up the money.
The other excuse is “I don’t have time,” which we all know is bullshit. You just don’t want to take the time for this. And until you do, you’ll never realize your goals.
Thanks for the kick in the pants, and thanks for all the great advice and info.
“I don’t have enough money.” Is usually just code for “You haven’t given me enough information to buy at this point.”
What I do with my website is split test different pages that provide information on my products in a number of different ways. The one that converts the highest with least amount of excuses is the one I typically stick to.
Split testing is of utmost importance.
I recently ran into this with my writing course. Most other writing courses out there are $400+. I was offering mine for $197, with a $100 discount for the first round so I could sort things out and get some testimonials. Several people wrote to say it was too much. I did nothing. One of them signed up for the course anyway because her husband told her to just do it . . . we just finished the course and she has earned not only the course fee but extra on top of that thanks to following my lessons!
Sometimes we look at the outside price, but forget that the benefits might be worth far more than the original price.
That being said, I don’t pay more than about $50 for a product online because as much as I might want it, I’m still not at that point where I’m comfortable spending money that might be needed by my kids who have the terrible habit of getting extremely sick right when I make a large purchase!
I suggest you add another possible reason they tell you that they don’t have budget. Your solution is just not compelling enough compared to their other priorities. In the corporate world, we call that “alternate uses of capital.”
Successful people find a way to invest in high priority items EVERY TIME.
Lisa
http://blog.energizegrowth.com
All great ideas here. I used to working selling computers and we’d always get the “hard negotiators” that would take up tons of my time. The more time you put into a client, the easier it is for THEM to walk away and you have wasted your time with them when you COULD have spent the time with another client. Set a price/time limit you will “invest” in a client, when it is reached then nicely say “It’s not a win/win situation for me.” In “Think and Grow Rich” Napoleon Hill states “I fully realize that no wealth or position can long endure, unless built upon truth and justice, therefore, I will engage in NO TRANSACTION that does not benefit ALL who it affects.” (emphasis is mine). The quote and others are in my upcoming book “How to Start a Business: Mac Version. 10 Essential Steps for Startups using a Mac.”
As someone who is just starting his online business, I can say that this is something I’ve been worrying about. I have been looking at others who sell prints of their photographs, and I’m making sure my prices are basically in line with those, but I still second-guess myself when it comes to the prices. I think I offer enough price points to allow anyone, if they are serious to own a piece. (I mean, 5 bucks for a 4×6″ print is hardly outrageous! I have yet to get an email complaining I charge too much, does that mean I’m not charging enough???
Late to the party but Hey – What a great article!
You’ve inspired me Naomi, I never get any “I don’t have the money” emails (pout). I’m going to go raise my prices now . . .
I just came across your blog and it’s fantastic. This article gave me tons to think about. I’ll be linking to this next week and subscribing so I don’t miss a thing. Thanks!
Here’s your problem. 100% money back guarantees mean NOTHING anymore, since they have been abused way too much. Just ask all the people who have tried to get their money back on 100% money back guarantees. I do not trust anyone that promotes at 100% money back guarantee, and I suspect I’m not alone.
don
2012prophecy.net