We’ve all been in this situation: your newest prospect is interested in your service or product, but the price he wants it for is what you were getting way back in 2006.
How do you deal with clients who are a little behind in terms of fees or price?
Here’s how to get paid what your worth:
1. Show Your Value
Make sure you educate your prospect or customer on the value your service or product provides. Perhaps this hot prospect doesn’t realise all the time and effort and the expertise that is poured into the project being proposed. It’s your job to make sure they see how much you or your product can benefit them.
2. Know Your Concessions
Negotiating is a win-win situation. No one should come out of a negotiation feeling like they got swindled. That doesn’t build good customer relationships. If you can’t budge on price, perhaps you can budge on delivery date or scope. Find points that you’re willing to give on.
3. Know Your Bottom Line
Before negotiating with a client over fees, know what your minimum rate is. What is your rock bottom negotiating point? How much do you need to get to make this a worthwhile project? Knowing your bottom gives you some wiggle room when negotiating.
4. Show Your Flinch
Let them know that their offer is too low either with a visible flinch or a tiny gasp (if you’re on the phone). And then be quiet. Let them get nervous and see if they counter.
5. Meet Them Half Way
If this is a valuable customer to have in terms other than monetary gain, offer to meet them half way. Say the prospect is a major influencer in your market, and his recommendation would carry significant clout. You might want to back down on price just to get the prestige of naming him as a client, especially if it could lead to future sales.
6. Know What The Competition Is Charging
It’s easy enough to find out this information. Sometimes it just takes a phone call or a quick search on the internet to find out what someone else is charging for similar services or products. Bolstered with this information, you have a bargaining position.
7. Counter High
If the silent treatment doesn’t get to them, you can counter high. This sets up the range that you’re looking for. Now you have their minimum and they have your maximum. Hopefully you can come to an agreement somewhere in the middle.
8. Stand Your Ground
If the prospect refuses to entertain negotiations, you can stand your ground and let them know that you can’t do their project for anything less than £XX.
9. Walk Away
This should always be your final option. If you are willing to walk away, you’ll make sure that you don’t agree to deals that don’t benefit you or your company.
Our negotiation skills training gives you a practical tool kit to manage each negotiation – leading to the creation of a natural structure that creates lasting commitment and will ensure negotiation is the most highly paid work you’ll ever do.
Call one of our consultants now to talk about the various options available to you and your team.