When a buyer pressures you to reduce your fees, start by identifying the three most common “needs” behind their request so that you can respond effectively without giving up your margin.
- “Bargain-Basement Billy.” This buyer wants to get the very best deal no matter what. They do not care about the relationship, the value, who you are, or who you know. If you want this piece of business, find small price concessions that you can live with - both now and in the future. Otherwise, graciously walk away.
- “Panicky Pam.” This client constantly complains about how expensive your fees are. Even though she likes you and your solution, she just can’t believe how much it costs. Assuming that you have priced your solution fairly, your best bet is to stand pat, empathize with her perspective, and focus her on the size of the problem and the value of solving it. Feel comfortable to let her go if she can find another provider that brings the same value for less.
- “Broke Ben.” This client is under extreme budget pressure and struggling to find adequate funds. This is an opportunity to get creative. Do your best to structure your deal in a way that meets their budgetary constraints, adds value, and does not prostitute your pricing. Before spending a lot of time, make sure that you find their true budget and that you are talking to the right person.
To stay true to your brand, only reduce fees in conjunction with reduced scope or the ability to build a longer and stronger business relationship.
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