If the video below resonates at all with you, please leave a comment!
I have been on the “service provider” side of this more times than I can count. It is very uncomfortable, to say the least.
There are 3 basic ways to deal with it:
- Hold firm: “These are my prices and services.”
I usually go with #2. Sometimes, however, I go with #3. I begin by offering my top option. If somebody balks at the price, I begin pulling things out of the offer. Once they see how much they stand to lose “by getting their price,” they sometimes rethink their position and start adding things back in!
Acquiescing is an outright loss. That’s not good business. Holding firm is the answer; and as a corollary to that, having the courage of your conviction; knowing that you’re providing real value. In the video, the negotiators aren’t playing the game right. They’re trying to negotiate some sort of alternative. There could be room for compromise if the service provider stands to benefit by agreeing to their payment terms, but it’s presumptuous and annoying when it’s not the way the service provider intends.
100 percent agree, Mitch! I negotiate, but I get my terms. When I start pulling stuff out of an offer, the value goes down to meet the price. I have less work to do and I charge less for the job.
When the (potential) customer sees the decrease in value, they start to re-think, and usually it doesn’t go too far. Sometimes, we take all the stuff out to meet their price and then we begin anew 🙂
It’s not a long process. I don’t have complicated solutions. It’s really just a list of “here’s what you get at this price.”