How to Answer the Ballpark Price Question on a Discovery Call

A prospect asks "what's your rate?" on a discovery call before anyone has described the problem. They ask because that's how they're used to buying.

When the client sees the price before they understand the value of what they're getting, the conversation turns into one about who is cheapest.

Key Takeaways

• When a prospect asks my rate, I say, "Absolutely, we can build that. What is that costing you right now?"
• Some clients have never added up what the problem costs them, so I work out the numbers myself and ask, "Is this math right?"
• I always throw out a range in the first call of some kind, even if they don't ask for it.
• I put the price on the first page of the proposal, because they're going to scroll to it anyway.

What should you say when a client asks your rate before you know the problem?

Whenever they lead with describing a deliverable as what they're looking for, the first thing I want to do is ask what that is costing them. Our response should be, "Absolutely, we can build that. What is that costing you right now?" That gets the conversation started right away.

We shut the rate question down as fast as possible. Let's get clear on what this is costing you first, then we can scope the right fix and price against that.

If they asked for the rate and keep asking, I say, "Great. Let's get clear on what this problem is before we start talking about rates." We're putting the cart before the horse here.

It sounds the same when someone wants an app. "Hey, how much to build it?" We can certainly help with that. What kind of problems are you experiencing? By changing the conversation away from the solution, you're getting closer and closer to being a problem solver for that client.

If you're working with some giant corporate and you have to submit a rate card, that's a different type of engagement. You want that? That's a different deck. We will still have time and material projects, because not everything fits neatly into this bucket.

How do you get the client's own number?

You need to ask the client what this is costing them. My version is, "What is this costing you every month it's sitting there not being done?"

When clients can't put a number on it, we can't just accept "I have no idea" as an answer. Some of the clients have never added up what it cost them. We push back in a helpful way.

We work out the numbers ourselves instead of waiting for the client to do it. I present that math to the client and say, "Is this math right? Because I'm trying to figure out what this is costing you." When I do that, I'm coming to them as a partner.

That cost doesn't have to mean dollar signs. It could mean brand reputation. It could mean employee retention.

The best question I've learned to ask is, "Why is now the time to do this?" A lot of the times what I like to do is just shut up. If you ask the right questions, the client will tell you how to sell them.

I don't ask them what their budget is, because they haven't budgeted for it. I ask them what it costs.

These are not gates. If they can't answer these questions, it doesn't mean we're not going to work with them.

How do you anchor the price on what the work is worth to the client?

The floor is what it costs you to deliver, plus your margin, plus a contingency for the risk that you're carrying. The ceiling is their number. What is solving this actually worth to them? That comes straight out of those initial questions you're asking. And then where our price sits is right in between.

You should know what your costs are. That's different than what you're charging. Never price the work, always price the client. If they think the work is cheap, you're only going to be able to charge cheap stuff.

A lot of agencies leave it up to the client to decide what fixing it is worth. When I set the price with the client, it's a partnership.

When a client pushes on price, more often the concern is risk, expectations, or trust.

To see how to set the price from what the fix is worth to the client, read how agency value-based pricing works.

When do you throw out a price range?

I throw out a range on the first call, even if they don't ask for it. My father taught me that you never know somebody's budget till you go over it.

Then I say, "Let me know if that's still in line with what you were thinking." You'll get back right away with "Yeah, that seems in line." You didn't commit to a price, because you haven't even scoped it yet.

We were always taught that the first person who puts out a price loses. That's in salary negotiation. In service work, the first person who throws out a price wins, because we save our time and we save their time.

If the range is more than they had in mind, we can design something to their budget.

If you're weighing a range, just give them the high number. That's probably what it's going to cost.

I never present a price over email if I can avoid it. I present a price in person so I can get the body language and add context to the price.

A fixed price on everything backfires and gets ugly. None of the firms I know bill on a single model, whether that's fixed, value, outcome or hours.

What goes in a shorter proposal?

First of all, clients don't read anything, so put the price on the first page. They're just going to scroll to the end anyway, the same way you do it and I do it.

Page one is the project summary: why are we doing this project? Here is the timeline. Here is the cost, and here is the billing. The rest of the pages are your general proposal language.

I ask clients why now is the time to do this work, because whatever they say after that is basically the opening summary of my proposal.

When I go back over a proposal, I read it with one lens: who is this document for? Is it for them or is it for us? If there are sections that are us covering our bases, they have to go.

I need to have a pricing discussion with them before I have a contractual one. Those are two very different conversations. If I overwhelm them with a big long document holding the legalese, the team, the scope, the pricing and the terms and conditions, they go dark for a while.

If you've sent the proposal and haven't heard back, try these proposal follow-up email samples.

How does Schmidt Consulting Group help an agency owner answer the ballpark price question?

Schmidt Consulting Group works with founder-led agencies and professional services firms on positioning, pricing and new business.

Mentorship is twice-monthly counsel for founders on pricing, hiring, clients and direction. You set the agenda, and your team does the work.

Advisory is a weekly operating rhythm for growth: a written plan, one priority at a time, and a review of results every week.

You'll hear the fee on our first call.