Recently we had a potential client ask for a quote for a database application. The price we gave the client and the amount they were expecting to pay were vastly different. Their budget was almost one-twentieth the cost of the application.
So who got it wrong and how did it end up so completely out of proportion?
It takes us a lot of work and time to come up with an accurate quote for a client. We put a lot of thought into every project and make sure we quote something that actually meets their requirements.
We learnt a valuable lesson: always ask a client for a ball-park figure for their budget before quoting. Maybe, if it makes them feel more comfortable, we could give them a minimum amount we expect it to cost before giving a detailed quote. Even if we told them a range that the price is likely to fall between the client would have been a lot more willing to tell us not to worry about it.
At a previous place of employ, my boss used to always talk about “managing the client’s expectations”. That’s impossible to do if their expectations aren’t actually stated.
Service businesses, like ours, also have expectations of our clients. Part of the mindfulness of dealing with providers and clients alike is being honest about what is required from each party as early as possible.
Everybody’s time is valuable. The client could have found out immediately that they did not have the funds for what they wanted. That extra time could be used to think of other solutions for their needs.
We could have saved time and done work for other clients or on our ever increasing list of things we need to continue strengthening our fledgeling business.
Also, “managing the client’s expectations” is the wrong way to look at it. It sounds manipulative – probably because it is. Expectations, much like prices, are a matter of negotiation. If everybody involved has an understanding of their responsibilities and those of their partners in the project, even if it’s just the very start of the relationship, there is accountability on all sides and things will move forward much more smoothly.
