Why You SHOULDN’T Haggle
I had a potential client who called me up and asked about my services and rates. After giving them a quick overview, they suggested to me that they should pay me slightly less and they gave me a rate that "was within their budget".
I didn't take them as a client and I'd recommend that you don't haggle with people either. Here are the reasons why:
You provide a tremendous amount of value to clients that is far above the monetary value of your rate. By agreeing to work at a lower price, you are cheapening your own services and tying the return on investment to a specific dollar figure (which cannot be done easily).
By lowering your price, you are unintentionally telling this client that you've jacked up your prices with a double dose of profit margin.
And here's the truth about clients who haggle: They are not nearly as loyal as clients who willingly pay your full rate… but they are almost always a lot more work. (At least, that has been my experience when I've made the mistake in the past of working for less). These clients who put price over any other kind of potential value are going to run to your competitor the moment they sniff out a better deal. But until they do, they tend to call more, demand more, and even threaten to take their business elsewhere if you don't do something extra for them.
Do yourself a favor and don't haggle. When a customer wants to pay less, find some lower priced options from among your offerings that can help them. (For example, if they want your 3 hour coaching call but only want to pay one-third of the $300 you normally charge, point out several other $100 options for them). If they don’t want those offerings, don't relent. In the long run, it will be far more profitable for you if you send those haggling clients on their way.
That's not to say that you won't take on clients at a lower rate, but just that you're not open to debate about what you charge. If you find that you have a lot of clients who don't all have the budget you would like charge, create a bunch of different services at various rates so that they have some choice.
If you set your rates and stick to them, and if you avoid haggling, you'll have a far stronger business and you'll enjoy it so much more.
[After thought: If you don't mind haggling with customers (although I STILL advise against it!) you may want to demand something extra of the hagglers. For example, maybe you'll be willing to work at a lower rate if they meet at 6AM Monday morning which is a time you're up but haven't yet been able to fill with billable work.]
Brought to by you by: Contemporary VA - Run your business instead of running in circles.
@ContemporaryVA on Twitter. Follow the team to stay updated on business resources we deliver that cover strategies and tips, social media and more!
Related Articles:
- “I want to make more money”
- Repackaging Your Services
- Why Niche Marketing Works
- The economy: What’s going on and why it matters to you
- Marketing Isn’t Enough
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
Comments
No comments yet.
Leave a comment