Money can be tough. It’s tough to spend, make, and talk about and, given that, you’re likely going to run into customer conversations either in your inbox or chat where they just don’t want to pay. At face-value, especially if you are a subscription-based service, it could surprise you if someone doesn’t want to pay. You might be thinking “but you’ve already used the service?” And while that is true, that doesn’t matter to your customer. According to a study at Wharton, there are three types of customers:
The people who are unwilling to pay are the “tightwads” and generally have trouble seeing value in individual prices. If a customer reaches out to you about your pricing or threatens cancellation based on pricing, the best tactic is to try to appeal a rational, numbers-based side of their brain. Here’s a response that we’ve found to be helpful:
Hey there,
Thanks so much for emailing about this — I can definitely see how that might feel a little pricey to you. $1000 upfront can seem like a lot of money, but when you think about the month to month budgeting, it’s actually only $83.33. It looks like you’re using our service pretty frequently, so I just wanted to reframe the financials for you slightly in case it made a difference in your mind.
If that pricing doesn’t work, we do offer our free plan, or a slightly lower plan than the one you’re on at a lower cost. That being said, neither of those two plans offer [x and y features] that I notice you’ve used a lot.
If you do not want to continue to pay, that’s totally cool and I’ll go ahead and cancel your billing and shift you to a free account. Just let me know!
Thanks!
If you aren’t on a subscription-based model and are instead selling physical products or one-off purchases, a great way to do something similar to the above is to focus on the lifetime value of the product. For example, if someone were to be complaining about the price of a coat that you were selling in your store, you could say something like
I know that it seems like a lot of money for a coat — I totally get it. But, [xyz brand] coats have been known to last for around 30 years, and offer a 7-year warranty and free servicing. That’s a pretty high value-add on top of the coat itself.
When you can help tightwad customers see the value of their purchase and move past their anxiety, they’ll be more willing to pay you the money you’re keen on.