When someone says they have a tight budget what does that mean to you?
To me I always ask them to elaborate before I assume they are cheap. I want them to tell me what they mean. To clarify their position, I ask them to tell me more about their budget and how they came to that figure.
Instinctively, when most people hear “tight budget” they assume the person doesn’t have a lot of money so they lower their price to try and make a sale.
Tight budget may mean the person needs everything spelled out and there are no surprises and the price quoted is the final price. It may also mean they have more money than you think for the budget but are being cautious with it.
Most entrepreneurs quickly go into reaction mode when they hear “tight budget” and reduce their price without questioning what their customers “tight budget” really is.
Sure, they might not have much money, or they might have more…you won’t know without asking.
I find the term “tight budget” as an arbitrary number as no two budgets are the same and what one person may think is too high a price someone else may think is too low.
Someone might think $300 a month is too high, yet another may think $3,000 a month is too low. Or, that paying $500,000 for a house is too much yet there are those who buy several multi-million dollar homes without batting an eye. Again, a budget whether tight or loose or whatever adjective they want to use in front of “budget” means different things to different people.
So instead of trying to work within their budget you should just stick to your price and tell them if they wish to do business with you the price is the price. Let them adjust their own budget if they wish to work with you.