Lowering Fees to Win Cases – Yes or No?
This past week, TCs at two different client practices of mine both encountered prospective patients that came in with a lower fee from another, previously visited practice – and attempted to use this as a bargaining chip to get a better “deal” from my client’s practice. These situations present some unique challenges, because you should never lower your fee without a corresponding drop in value, period. That said, what is the best way to handle this?
The first thing that you should recognize is that the person’s behavior demonstrates that they prefer to get treatment with your practice; otherwise, your higher fee would not be relevant. The issue in their mind is getting the best possible quality of care at a price comparable to your less-regarded competitor. This puts your practice in a position of strength during the negotiation process.
Next, a key point to remember about negotiating is that the person asking questions controls the conversation. When a visitor asks you to lower your fee, they are temporarily in control of the discussion. So, when you are asked to lower your fee, your objective is to handle the request appropriately, and then ask a question of your own – thereby putting you back in control.
To put this concept into practice here, the TC should first handle the request to lower fees. As follows: “our policy on fees is that it would be unfair to our patients to charge two different fees for the same amount of value, so for that reason, I cannot do that.” (This, by the way, will stop the fee conversation in its tracks).
Then, the TC should continue with: “However, what I can do is work with you on financing treatment. What concerns you? Is it the down payment, the monthly payment, or both?” (Now the TC, by asking this question, is again leading the consultation.)
Based on the visitor’s response to that question, the TC – now fully in control of the discussion – is free to present an alternative plan that he or she feels is the best solution for the visitor’s stated needs.
It is important to remember in these situations that the concern of the patient is usually not the total fee itself, but how to make the cost of treatment fit into their budget. This is how most people evaluate major financial decisions. To cite but one example, you will note that most advertisements for automobiles promote the amount of the monthly payment, not the price of the car, because the primary concern of the consumer is the monthly budget impact, not the total cost of the vehicle.
If you are dealing with a credit-worthy individual, and I assume here that you are, make every effort to work with their financial/budgetary requirements. Find out what they want first, and then do what you can to meet their needs. You usually will not have to “match” their stated requirements; if they want treatment at your practice, a middle-ground compromise will usually suffice. You may not be paid as fast as you would like, but you will be paid. Nothing is more expensive to you than an empty chair.
