How you communicate your pricing is as important as the numbers. Especially when moving to value-based fees, you need to frame the conversation so clients see it as fair and beneficial. Here are tactics for discussing pricing:
Lead with the Outcome, Then Price: When presenting a proposal or offer, first recap what the client is getting. (“We’ve discussed that the goal is to enter two new markets and grow revenue 50% by next year. I’ll be your fractional CMO leading that charge, with a comprehensive marketing strategy and team execution.”) Then state the price as an investment to achieve that. This keeps the focus on value. If you start with “It’ll cost $X,” human nature might trigger sticker shock before they recall the payoff.
Anchor Against Alternatives: Help the client compare your fee to other ways of achieving the outcome. For instance: “Bringing on a full-time CMO with my experience would easily cost £250K+ annually in salary and bonuses. With me, you get that expertise at a fraction of the cost and none of the long-term overhead.” Or compare to losses avoided: “If product launch is delayed another quarter, that’s potentially $500K in lost market opportunity – my fee is a small percent of that to ensure we hit the ground running.” This anchoring makes your price feel like a logical bargain relative to value.
Be Confident and Matter-of-Fact: State your price without waffling or over-justifying. The more you act like it’s normal and expected, the more the client will accept it. Use clear, simple language. For example: “My fee for this engagement is $20,000 per month, which covers everything we outlined.” Then stop talking. Let them respond or ask questions. Many people make the mistake of nervously continuing to talk, inadvertently undermining their own price. Silence can be powerful – it shows you are not afraid of your own rates.
Frame as Win-Win: Especially if you propose a value-based or success-fee component, highlight how this aligns interests. “This pricing model really puts us on the same team – we’re both motivated to knock it out of the park. You know I’m not just logging hours; I’m here to achieve [Outcome], and I succeed when you succeed.” This can turn a skeptical client into an enthusiastic one, because you’ve shown you’re partnering rather than just selling.
Offer Options: Presenting two or three pricing options can be effective. For example: Option A: Advisory-only at a lower fee; Option B: Fractional leadership (what you really recommend) at a higher fee; Option C: Full project ownership including extra services at an even higher fee. Often clients will gravitate to the middle option. Options also shift the question from “Do we hire this person or not?” to “How will we work together?” which is subtle but powerful. Each option should be well-defined (use the packages you created).
Handle Objections by Re-focusing Value: If the client says “That’s more than we budgeted” or pushes back, don’t immediately discount. Instead, ask questions: “I understand budget is a concern – can I ask how you’re evaluating the fee relative to the results we’re targeting?” They might reveal they haven’t fully considered the upside, giving you a chance to reinforce it. Or if they truly can’t afford you, you might down-scope the engagement (reduce the outcome/impact accordingly) rather than simply lowering price for same scope. Always pair any concession with a change in scope or terms, so you’re not just giving discount – you’re modifying the deal.
Put It in Writing: After discussing, always follow up with a written proposal or email outlining the agreed scope and pricing. Use clear language, reiterate outcomes, and the fee. This prevents miscommunication and serves as reference. In the written form, you can also include a brief “value justification” statement. For example: “Investment: $30,000 (project fee). This investment is designed to deliver [Outcome] which is estimated to [benefit].” It might feel salesy, but it helps any higher-ups who approve the budget see the rationale.
Throughout pricing discussions, believe in your worth. If you’ve done the work to define your value and you know what competitors or full-timers cost, speak with conviction. Clients will sense that confidence. Remember, businesses ultimately care about results – if you can connect the dots between your fee and their desired result, you’re aligning with their interests.
Red flags and pitfalls to avoid
Not every client or deal is healthy. Here are some red flags in the pricing and scoping phase that may signal future trouble (or at least warrant caution):
Clients fixated on hours or rate: If despite your best effort to discuss outcomes, the client keeps saying things like “How many hours exactly will you work? What’s your hourly rate? We usually pay consultants $X/hour,” it’s a sign they might not get the fractional value concept. They may counting every penny, or expect you to be “on call” since they’re “paying for time.” This could lead to friction down the road. You may need to re-educate them or, in some cases, decide if they’re the right fit for your model. An outcome-focused client will care more about what you do than exactly when or how long.
Undefined or constantly shifting scope: If a client can’t clearly define what they want, or they keep adding “just one more thing” during initial talks without acknowledging it will affect price, beware. This behavior foreshadows scope creep issues. It’s fine if a client has a broad challenge and needs your help to clarify – you can build a discovery phase into the project. But if they expect a fixed price while they keep the goals fluid, you could be in trouble. Insist on clarity or set a timeboxed exploratory engagement first.
Bargain-basement mindset: Some prospects will compare you against vastly cheaper alternatives (like “We could hire an offshore freelancer for $15/hour to do some of this”). If a potential client only sees cost and not quality or expertise, you may never convince them of value. Red flag if they pressure you to cut rates significantly or promise “future work” instead of paying appropriately now. Serious businesses respect that quality costs money. It’s okay to walk away from those who don’t.
Asks for free trials or extensive spec work: A client that asks you to do a small project or an “audit” first, unpaid or heavily discounted, “to see if it’s a fit” might be fishing for free consulting. While some discovery or proposal-building is normal, be cautious if they push for a lot of work before signing a contract. Your time is valuable. It’s reasonable to charge a nominal fee for a discovery workshop or initial audit (and many serious clients expect to pay for this).
Equity in lieu of pay: Especially for startups, you might hear, “We can’t pay your rates, but we can give you equity!” Equity can be a nice kicker in addition to pay, or in rare cases a calculated gamble if you deeply believe in the company. But be very careful accepting equity instead of fair pay. Early equity often ends up worthless, and you can’t pay mortgages with stock certificates. If equity is offered, treat it as gravy on top – your base pricing should still cover your time/expenses at minimum.
Lack of chemistry or respect: This is less tangible, but if in pricing discussions you notice the client being disrespectful, not listening, or treating you like a vendor they can boss around, it may spell trouble. Fractional work is usually a close partnership with leadership. If they won’t respect your expertise now, it won’t magically improve later (and could make getting paid or scope respected much harder). Sometimes the best decision is to not pursue a misaligned opportunity.
If you encounter these red flags, it doesn’t always mean the deal is dead – but proceed with caution and clear communication. You might mitigate some issues by adjusting terms: for example, if a client is fixated on hours, you could compromise with a capped-hours retainer (e.g., up to X hours for Y fee, with overtime billed extra) to ease their mind. Or if scope is a concern, build in a midpoint review to renegotiate if needed. The key is to protect yourself and ensure you’re entering a win-win engagement.
Key Takeaways
Base Price on Value: Align your pricing with the outcomes and impact you deliver, not just the time spent. This often means using retainers, project fees, or value-based models instead of purely hourly billing.
Know the Models: Understand the pros/cons of hourly, retainer, project, and value-based pricing. Use a hybrid approach if needed (for example, a project phase followed by a retainer). Pick a model that fits the engagement type and client’s needs while protecting your worth.
Communicate ROI: In client discussions, frame your fee as an investment toward a result. Compare against alternatives (like cost of a full-time hire or cost of not solving the problem) to anchor your price. Be confident and focus on the outcome before the cost.
Set Clear Terms: Avoid ambiguity by clearly defining scope, deliverables, timeline, and payment terms in writing. A well-scoped agreement is the best defense against scope creep and payment issues.
Watch for Red Flags: Be cautious of clients who only haggle on price, won’t define goals, expect excessive free work, or show lack of respect. These are signs of future problems. It’s better to walk away or correct course early than to lock into a bad deal.
By pricing based on outcomes, you not only earn more – you also attract clients who value your contribution. It sets the relationship on a foundation of results and trust. Next, we’ll look at building your brand and reputation so that those ideal clients can find you and feel confident in hiring you at those prices.