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Understanding client budgets ​

It's rare for a client to tell you their budget outright, so you will need to find a way to get this information. The point of asking about the budget is to find out whether you can make a profit on the job, not to put the client on the spot.

  • Understand the client's budget before you start working on a service.
  • Nine times out of ten, once the budget is set, your client won't raise it to work with you. It's rare that a client will increase their budget just to work with you, so you will need to work within their budget.
  • All the sales tactics in the world won't convince a client to increase their budget from 1,000 to 20,000 dollars if they only have 1,000 dollars to spend.
  • Budgets for each service vary from client to client, and region to region.

Avoid problematic clients

  • If you talk a client into raising their budget, they will expect more from you. Their demands can turn unrealistic, and there is a real risk they become combative.
  • Clients with small budgets who promise big payments later are usually trouble.
  • Do not take on services for exposure or experience. You cannot pay your bills with either one.
  • If the client has no money now, they will likely not have money in the future.

This guide covers five approaches to reading a client's budget, roughly in the order to try them.

1 - Ask directly ​

The best way to determine the client's budget is to ask them directly. Get all the details of the service first and listen to the client, then ask what their budget is.

Don't be afraid to ask the client what their budget is. Some will tell you outright, and those are usually the best clients to work with, because they value your time and expertise. Others will hold it back because they want to hear your price first.

  • Ask a lot of questions about the service.
  • Show genuine interest in the work and take notes.
  • Make sure you understand the scope of the service, then repeat it back to the client.
  • Ask for their budget range.

Stay calm

Do not react to the client's budget, no matter how high or low it is. You can sort that out later after you have all the details of the service. If your business is struggling, and you show you are desperate for work, the client will be concerned you run a bad business and will not want to work with you.

2 - Ask about past services ​

If the client refuses to disclose the budget, ask what they have spent on similar services in the past. This method may not be too useful if the client has never done a similar service before.

3 - Float a price range ​

Name a price based on your previous work. Check your Market Prices to see what similar work has sold for.

Ask "does that fit your budget?" and watch how they react. If they squirm, your price is above their range.

4 - Compare to another product ​

Compare your service to something the client may be more familiar with, for example a hotel.

  • Are they looking for a budget option or a high end option?
  • What is the difference between a budget hotel and a high end hotel?
  • In the hotel example, both hotels provide a place to sleep, but the high end hotel has more amenities and better service.

Use a comparison they know

Use an analogy that relates to the client's business or industry if possible.

5 - Send a rough estimate ​

If the client keeps refusing to share their budget, or you doubt the number they gave you, send them a rough estimate. That saves you from building a detailed estimate for a client who is not serious. Speak and write with confidence.

Avoid this if you can

  • Only use this when nothing else has worked.
  • Ensure the client understands that the price will increase if the scope increases.

What to enter while you find out ​

Every service in Priscale needs a budget, so you never have to wait for one of these tactics to land before you start. Leave the switch on I don't know the budget and put your best figure in Your best budget guess. When the client gives you a real number, flip the switch to I know the budget and the field becomes Budget provided by customer.