This is the right way. Never say No but also don't just say Yes. A lot of times B2B customers are just doing a checklist and once they hear that it will cost more, they would drop it. I have been asked for escrow by customers paying $299/mo and I laugh internally first and then tell them "For escrow, you will need to be on our enterprise plan starting at $xx,000 per year with a minimum 3 year contract. let me know if this is something you would be open to". Usually crickets after that.
Never try to justify your pricing. The moment you go down that rabbit hole, there is no coming back. You will give 1 reason and they will continue to challenge it.
Best way is to just say "It is company policy and I am afraid we cannot work around that. I am happy to discuss alternatives" and go from there.
I find that being a solopreneur (or just as CEO of a small startup), it's hard to invoke "company policy". You can say your board won't go for XYZ, but if your customer knows you own most of the company, that wouldn't fly either.
Good point. You could replace company policy with "I do offer Escrow option with a customized/enterprise plan at $x/Year with a minimum contract to compensate for the additional overhead, cost and risks that comes with setting it all up"
Then, stick to it and don't try to justify it too much.
Comments
This is the right way. Never say No but also don't just say Yes. A lot of times B2B customers are just doing a checklist and once they hear that it will cost more, they would drop it. I have been asked for escrow by customers paying $299/mo and I laugh internally first and then tell them "For escrow, you will need to be on our enterprise plan starting at $xx,000 per year with a minimum 3 year contract. let me know if this is something you would be open to". Usually crickets after that.
Out of curiosity, what reason would you give if they asked why escrow requires a more expensive plan?
Never try to justify your pricing. The moment you go down that rabbit hole, there is no coming back. You will give 1 reason and they will continue to challenge it.
Best way is to just say "It is company policy and I am afraid we cannot work around that. I am happy to discuss alternatives" and go from there.
I find that being a solopreneur (or just as CEO of a small startup), it's hard to invoke "company policy". You can say your board won't go for XYZ, but if your customer knows you own most of the company, that wouldn't fly either.
Tips?
Good point. You could replace company policy with "I do offer Escrow option with a customized/enterprise plan at $x/Year with a minimum contract to compensate for the additional overhead, cost and risks that comes with setting it all up"
Then, stick to it and don't try to justify it too much.
"Experience for previous clients shows that this is the best solution for everyone involved."
Risk, administrative burden.