I recently took my van to two different mechanics for an estimate on a repair on my brakes. One estimate was $250, the other was $175. I went with the $250. Why? Because the $175 mechanic apologized for the price. I didn’t even get a chance to look at the estimate sheet before the guy started wiping his hands on a rag and being defensive about the price.
“A lot of that is labor,” he said, “But car parts have gone sky high lately with the price of oil and transportation…” and he launched into all kinds of reasons to justify his price.
“No, that’s fine,” I smiled. “I just needed a estimate.”

Still, he seemed almost angry at me, like I was critical of his rates, or that he resented having to price something lower to get the job even though I had only asked for an estimate. He looked at the van, looked at me and made assumptions about what I would/could pay rather than what he needed to make on the job. I didn’t take it personally. I’ve done the same thing: assumed things based on what a potential client said or did rather than simply charge what I was worth based on what value I offered, regardless of their ability to pay. I could almost sense the defensive tirade that might spew forth if I said anything to him, so I thanked him, took the estimate and left.

The other mechanic greeted me cheerfully with an estimate, a list of the parts and the price of labor and a big smile - like he was giving me the best deal on earth for the repairs. He was HAPPY that the job was ONLY going to cost $250. He was confident about his rates and about me. At no time did I sense he felt he needed to grab my business, or lower his rate to get the job. $250 was not only his best price, it was his best value. So I grabbed it. Had the $175 guy been the same way, I would have gone with him. Who doesn’t want to save $75??

Both guys gave me the option of used parts vs new parts (after all my van is 30 years old and doesn’t really need a part that will outlast it) and both were pretty much in line on everything except labor. The $250 guy charged $25 more an hour. My guess is he believed he was worth it and that he felt confident and proud of his work. He believed in himself so I did too, happy to pay the extra $75 for essentially was peace of mind from that confidence.

The same thing happened when I met a hair stylist the other day. She quoted me $60 for a style, cut and color I asked about. But the apology in her voice and the hesitant way she spoke made me think she didn’t think her work justified her price. I was just curious - since all I can afford right now is SuperCuts $15 cut and a $5 tip. But I thought the reaction was interesting.

I also hear the apology in my voice and in my friend’s voices when they give people their rates. It’s like we’re apologizing for being so valuable. We assume people can’t or won’t pay what we charge. So when I read this article in the Wall Street Journal today a light bulb went on. Author Mike Michalowicz encourages negotiators to get their price on the table as fast as possible - contrary to the old trick of getting the prospect to name their price first. Hemming and hawing around, dancing around “the number,” is a waste of time and energy. Why? He writes:

“If a prospect can’t—or won’t—pay a fair price, why would you spend one more second trying to land her as a client? Even if you lose the deal because your price is too high, you still come out on top because you haven’t invested much time trying to win her business.”

The entire article is worth a read. I suggest you check it out. The author says, “When you try to read a prospect’s mind or wait for the person to reveal what he or she expects, you invariably end up doing more work at a discounted rate.”

I agree. If you’re worth what you charge, charge it and get on with it. Don’t apologize. No apology needed, and none preferred. If the client/prospect balks or wants to negotiate from there, at least you’re negotiating from YOUR price, not theirs. You may be able to value add or give a discount, but if you’re thinking $5,000 and they’re thinking $2,500 you’re far too far apart to reach an agreement on price - so why waste your time? They can’t afford you. Move on.