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Clients that asks for discount

by Andrew H
39 replies
Ah, so I fell into the discount trap. I was working with a client who I am very happy/lucky to have (+20k last yr), and they asked for a discount on a 5k quote. This was the first time this had happened to me and regrettably under the pressure I said 'Yes!' and offered a 5% discount - that was over 6 months ago. Now comes the next quote and the client is asking for a discount again. So I am wondering how to solve this, I figure I have two options:

1. Charge higher price to allow for discount
2. Explain that the price already has a special discount included

For the future I found this blog post, which has a very good rebuttal for clients that ask for discounts from design/programming companies:
"You see, we as designers use time as one of our measurements for determining price. If we decrease our price, we have to decrease the amount of time we put in completing your work. That, in the end, might not be the greatest idea."
How to handle design clients who always demand a discount | Graphic Design Blender | Freelance Design Blog
So for the future I plan to use that and not fall into the trap of being known as someone who gives discounts. However for this situation what would you guys do? Give the discount? or try and talk my way out of it?
#asks #clients #discount
  • Profile picture of the author Claude Whitacre
    "Our policy is to give a 5% discount for pre-pay. The quote reflects that"

    Something like that. 5%? You're lucky.
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    • Profile picture of the author cshilling22
      Originally Posted by Claude Whitacre View Post

      "Our policy is to give a 5% discount for pre-pay. The quote reflects that"

      Something like that. 5%? You're lucky.
      That is what I was going to say. I actually offer a discount (usually already built into the retail price) if the client pays more or all upfront. This makes the client feel like they are getting a deal and saves me headaches down the road when it comes to collections.
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  • Profile picture of the author Andrew H
    Hey Claud,

    Out of curiosity what sort of services do you offer? My client's always pay a percentage upfront (usually 30% - Web design/programming). I wonder if the 5% off for full upfront payment would work in my field.
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    • Profile picture of the author Claude Whitacre
      Originally Posted by mcflause View Post

      Hey Claud,

      Out of curiosity what sort of services do you offer? My client's always pay a percentage upfront (usually 30% - Web design/programming). I wonder if the 5% off for full upfront payment would work in my field.
      A package of 36 videos, a thousand articles (12 articles spun), a website, mobile site, their Google Plus listing redone, ongoing support & additional content.
      $3,999 up front and $199 a month.

      No discounts, no negotiations. One package. If they want, they can pay $699 a month for 9 months, and then $199 a month.

      After my next speaking gig in February, the price goes up to $5,999 plus $199 a month.

      This works for me, but I only sell one package, not a la carte.

      And I don't bill, so they can't take a discount. All my billing is automatic deductions from their checking account.

      Jason said; So for the future: just because someone tries to squeeze you doesn't mean you have to give them what they want. Next time, let your eyes go wide and look at them, saying, "Is there something wrong with my work?" I love it. It made my morning.
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      • Profile picture of the author John Durham
        Originally Posted by Claude Whitacre View Post

        A package of 36 videos, a thousand articles (12 articles spun), a website, mobile site, their Google Plus listing redone, ongoing support & additional content.
        $3,999 up front and $199 a month.

        No discounts, no negotiations. One package. If they want, they can pay $699 a month for 9 months, and then $199 a month.

        After my next speaking gig in February, the price goes up to $5,999 plus $199 a month.

        I'm liking your style more every day Claude. Keep talkin!
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      • Profile picture of the author Huskerdarren
        Originally Posted by Claude Whitacre View Post

        A package of 36 videos, a thousand articles (12 articles spun), a website, mobile site, their Google Plus listing redone, ongoing support & additional content.
        $3,999 up front and $199 a month.

        No discounts, no negotiations. One package. If they want, they can pay $699 a month for 9 months, and then $199 a month.

        After my next speaking gig in February, the price goes up to $5,999 plus $199 a month.

        This works for me, but I only sell one package, not a la carte.

        And I don't bill, so they can't take a discount. All my billing is automatic deductions from their checking account.

        Jason said; So for the future: just because someone tries to squeeze you doesn't mean you have to give them what they want. Next time, let your eyes go wide and look at them, saying, "Is there something wrong with my work?" I love it. It made my morning.
        Hey Claude, 36 videos sounds like a lot. Do you go out and shoot video or are they slide shows set to narration/music? Are some customer testimonials? Is it 36 over the course of 1 year? Thank you. I'd like to hear more about what you're doing here.
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        • Profile picture of the author John Durham
          Originally Posted by Huskerdarren View Post

          Thank you. I'd like to hear more about what you're doing here.
          Me too. Sounds more like a 20k package to me.

          Or $5999, and a grand per month.
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        • Profile picture of the author Claude Whitacre
          Originally Posted by Huskerdarren View Post

          Hey Claude, 36 videos sounds like a lot. Do you go out and shoot video or are they slide shows set to narration/music? Are some customer testimonials? Is it 36 over the course of 1 year? Thank you. I'd like to hear more about what you're doing here.
          The videos are up front. If I go to their business, 12 videos are shot live. These are tours of the business, interviews with the owner...and the rest are answers to common questions customers ask.

          If I sold this at a seminar, it would be one introduction by the business owners (Or whoever was there), and the rest are animated videos.
          The other 24 videos are a combination of animated videos and slide show videos. their purpose is to link to the main 12 videos, giving them some serious Pagerank and they show up much better on Google. These 24 videos go on two additional Youtube channels. The client gets three Youtube channels.

          The main 12 videos are then each sent to 30 additional videos sites, and to the client's website (the one we build for them). These really just act as Citation sites, and each have the URL to the original Youtube video.

          If the client then makes some of their own videos, I'll add them to their main Youtube channel. I don't charge extra for this, as they are already paying me $199 a month for almost no work.

          Yeah, just typing this out makes me want to raise my price.
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          • Profile picture of the author bizgrower
            Originally Posted by Claude Whitacre View Post

            The videos are up front. If I go to their business, 12 videos are shot live. These are tours of the business, interviews with the owner...and the rest are answers to common questions customers ask.

            If I sold this at a seminar, it would be one introduction by the business owners (Or whoever was there), and the rest are animated videos.
            The other 24 videos are a combination of animated videos and slide show videos. their purpose is to link to the main 12 videos, giving them some serious Pagerank and they show up much better on Google. These 24 videos go on two additional Youtube channels. The client gets three Youtube channels.

            The main 12 videos are then each sent to 30 additional videos sites, and to the client's website (the one we build for them). These really just act as Citation sites, and each have the URL to the original Youtube video.

            If the client then makes some of their own videos, I'll add them to their main Youtube channel. I don't charge extra for this, as they are already paying me $199 a month for almost no work.

            Yeah, just typing this out makes me want to raise my price.
            Just reading this makes me want to raise your price.
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  • Profile picture of the author sdentrepreneur
    I give discounts, depending on the client and scope of work. It's easier to keep an existing client, then to find a new one.
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  • Profile picture of the author winagain
    2. Explain that the price already has a special discount included <-- this is the best option.
    If you start shorting yourself and giving big discounts, the quality of your work will start to slip. Not because you will not be doing a good job, but because you don't have the resources to do it at the quality it requires.
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  • Profile picture of the author winagain
    2. Explain that the price already has a special discount included <-- this is the best option.
    If you start shorting yourself and giving big discounts, the quality of your work will start to slip. Not because you will not be doing a good job, but because you don't have the resources to do it at the quality it requires.
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  • Profile picture of the author kenmichaels
    “You see, we as designers use time as one of our measurements for determining price. If we decrease our price, we have to decrease the amount of time we put in completing your work. That, in the end, might not be the greatest idea.”
    How to handle design clients who always demand a discount | Graphic Design Blender | Freelance Design Blog


    The idea behind the rebuttal is good, but the way it is worded will most likely
    lose you business.

    Why? because it makes it sound like you will only work as hard as your payed.
    another words, not provide top level service because of the discount.

    you have to remember people hear what they WANT to hear....

    and when you say NO, sometimes they distort it. SO SINCE
    it is an existing customer, you need to handle it differently, with that in mind.

    It is easier to lose an existing customer because of something minor
    then to get a new customer with equal value to you.

    Here you want an easy out.

    I am glad you mentioned the discount, i forgot i needed to remind you of and increase
    in price this cycle.

    Ill tell you what, ill waive that this time ... this way you can still get your discount
    for being a valued customer.

    Added later:

    It might be a good idea to find out WHY they are asking for a discount.
    It might just be discount for the sake of a discount...
    or it might mean they are having problems, if they are... maybe you can help.
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    • Profile picture of the author Sipboy3000
      Originally Posted by kenmichaels View Post

      "You see, we as designers use time as one of our measurements for determining price. If we decrease our price, we have to decrease the amount of time we put in completing your work. That, in the end, might not be the greatest idea."
      How to handle design clients who always demand a discount | Graphic Design Blender | Freelance Design Blog


      The idea behind the rebuttal is good, but the way it is worded will most likely
      lose you business.

      Why? because it makes it sound like you will only work as hard as your payed.
      another words, not provide top level service because of the discount.

      you have to remember people hear what they WANT to hear....

      and when you say NO, sometimes they distort it. SO SINCE
      it is an existing customer, you need to handle it differently, with that in mind.

      It is easier to lose an existing customer because of something minor
      then to get a new customer with equal value to you.

      Here you want an easy out.

      I am glad you mentioned the discount, i forgot i needed to remind you of and increase
      in price this cycle.

      Ill tell you what, ill waive that this time ... this way you can still get your discount
      for being a valued customer.

      Added later:

      It might be a good idea to find out WHY they are asking for a discount.
      It might just be discount for the sake of a discount...
      or it might mean they are having problems, if they are... maybe you can help.
      I totally agree with what he's saying.

      I'd also try to get a better understanding about why they are asking as well. In the past, I've found out that stuff like this has a deeper meaning and it could mean lots of things.

      Lots of good advice already here, but my two cents is to focus on doing what you need to do to retain the client. Especially if they're happy with your services.
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  • Profile picture of the author kellyyarnsbro
    There is a business strategy i've known and was taught by a good friend of mine before and is effective specially in selling products. It's about adding a 5% on a original/regular price, thus when a client/customer asked for a discount then you still can have the original price without cutting a part of of what you'll earn.
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  • Profile picture of the author misterme
    “You see, we as designers use time as one of our measurements for determining price. If we decrease our price, we have to decrease the amount of time we put in completing your work. That, in the end, might not be the greatest idea.”
    I see. So, you're basically saying another designer who's more efficient with their time would be a better value than you? - from "Oops: That Rebuttal Ain't Gonna Work" by Mister Me.

    Anyway, here's my solution: Instead of a discount, see if you can toss in something they desire that costs you less than that 5% but is perceived of greater value. Ideally, it would also be something that can tie them into even further spending on you down the road.
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    • Profile picture of the author Andrew H
      Originally Posted by misterme View Post

      I see. So, you're basically saying another designer who's more efficient with their time would be the better value for me? - from "Oops: That Rebuttal Ain't Gonna Work" by Mister Me.

      Anyway, here's my solution: Instead of a discount, see if you can toss in something they desire that costs you less than that 5% but is perceived of greater value. Ideally, it would also be something that can tie them into even further spending on you down the road.
      The author of the blog appears to be a web designer. I think where design is concerned this is a very valid objection to a request for a discount. However I can see what you mean with regards to other tasks where one person might be quicker than another (ie: digging a hole?).

      Regardless, yes tossing in extra value is good. I feel like 5% doesn't sound like a lot, but in reality 5% of a 10k quote is still $500 which is quite a bit of money to me. I might try this extra value idea next time, or maybe free hosting or something like that.
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      • Profile picture of the author kenmichaels
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        • Profile picture of the author ThePromotionalGuy
          I always love the discussion of whether or not to discount.

          Going back over 40 years ago I was shown how to offer a product or service and remove the whole discounting topic away from the customer.

          It doesn't matter what industry you are in or whether you are on or offline, or you've discounted in the past, this one phrase removes and disarms your client.

          And the phrase is, "Well you have 3 options".

          An example of this is when a client calls and says how much to have...? You respond with, "Well you have 3 options".

          The reason this phrase works so well is it gives you back control and it settles the client down and disarms their "How cheap can I get this" thinking.

          Your client is forced to decide what they want and what they are willing to give up and because they are selfish they will be more willing to find out what the 3 options are first. Remember everyone rich or poor will always want to hear options that they can choose from.

          It stops being a pricing issue and becomes a have or have not situation.

          Based on your post I'll conclude you know the whole scope of what this client wants.

          What I would do is look at what you are completely offering them. Then create 3 different size packages. With each package increase quantity between 30%-50% as well as increase pricing to match that package. (Using the term packages is simply for this example)

          "Mr. Client, going over the whole project and based on your recommendations I've been able to come up with three possible options, that will work for you."

          "You've asked for a discount which is reasonable, but I've taken it a step further and broken the project down into three workable solutions that will save you more money and give you what you want."

          "Knowing your objective and the goal you want to reach here are three packaged solutions that will reach your goal"

          "Package 1 you can have this, this, this and a little bit of that and have it completed by Spring."

          "Package 2 you can have that, that, that and a little bit of this and have it completed by Summer."

          "Package 3 encompasses everything in packages 1 & 2 but I've also added the other, the other and something else and it will be completed by Fall"

          "But before you decide let's look over what you want done again and decide which package might work the best and the time frame that works better for you"

          "Package 1 you get this, this, this and a little bit of that with a completion date of Spring for $X.xx"

          "Package 2 you get that, that, that and a little bit of this with a completion date of Summer for $Y.yy"

          "Package 3 you get this, that, the other and something else with a completion date of Fall for $Z.zz"

          "So based on the goal you want to reach and you've reviewed all 3 packages what time frame works best for you?"

          Now should the client say I want package 3 for the price of package 1 you advise them that package 3 is not available at the price because package 3 will take 9 months to finish where package 1 will only take 3 months to complete.

          So my recommendation would be to offer this client 3 options and see what they have to say.

          Good Luck
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      • Profile picture of the author Aaron Doud
        Originally Posted by mcflause View Post

        Regardless, yes tossing in extra value is good. I feel like 5% doesn't sound like a lot, but in reality 5% of a 10k quote is still $500 which is quite a bit of money to me.
        I think you are looking at it all wrong. The 5% and $500 doesn't matter.

        The 95% and $9,500 does.

        If you have a good client like that why not give them a 5% or 10% discount off your normal prices?

        Remember your prices should have prospecting time and such build in and by being a repeat customer they are saving you that time.

        I will never stop being amazed by how companies want to discount to get new customers but never to reward their loyal customers.

        Which is worth more to you a new client or a loyal client?
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  • Profile picture of the author jumbo7901
    Never give discount. Offer freebies .. Couple of extra features that are valuable to them
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  • Profile picture of the author bizgrower
    I think that web designer got away with it with that one client. This time.
    It's not good to make decisions from a statistic of one.

    As misterme and Ken said, find something you can give them and keep in mind
    VIP "touches" for future repeat and referring clients. People like to feel special and often have that feeling of entitlement when they've done a lot for you (at least in their mind).
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  • Profile picture of the author moneyman2010
    Yea just tell them that the price has already been discounted..And if you see this being a problem just increase your rates to make up the difference..
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    • Profile picture of the author PaulSch
      Originally Posted by moneyman2010 View Post

      Yea just tell them that the price has already been discounted..And if you see this being a problem just increase your rates to make up the difference..
      And my response to this would be ..."You're giving me a discount on my job but never told me about it!! Do you think I was born yesterday? Goodbye."
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      • Profile picture of the author John Durham
        Originally Posted by PaulSch View Post

        And my response to this would be ..."You're giving me a discount on my job but never told me about it!! Do you think I was born yesterday? Goodbye."
        I was born at night, but it was LAST night. lol

        Where's Claude? Cmon man. You cant just leave us hangin like that.
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  • Profile picture of the author Jason Kanigan
    Well the OP has gotten onto the slippery slope with this client. Once you've offered it, discounting is tough to take away. I suggest raising your prices to accomodate and then discounting. You really ought to be raising your prices anyway as you go along and get more experience. After all, you're worth more, aren't you?

    So for the future: just because someone tries to squeeze you doesn't mean you have to give them what they want. Next time, let your eyes go wide and look at them, saying, "Is there something wrong with my work?"

    And be quiet and wait for them to answer, no matter how long it takes.

    The web designers I work with in town are being told to raise their prices by their clients.

    Another option you have is to say, "Sure, we can get the investment lower if that's what you really want. Now what features do you want me to cut?"

    If this prospect insists on a discount, there's something flawed with your relationship.
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  • Profile picture of the author bluecoyotemedia
    Mcfluase

    are you insane man??

    of course you should give a discount.. I always discount loyalty.. now if your underpricing your services already that is something you need to deal with.

    but I believe in rewarding someone ho spends money with me.. if you cannot go lower than add a perk. and explain that you appreciate his business.

    what I will never do is discount on the front end for new clients..

    eddie





    Originally Posted by mcflause View Post

    Ah, so I fell into the discount trap. I was working with a client who I am very happy/lucky to have (+20k last yr), and they asked for a discount on a 5k quote. This was the first time this had happened to me and regrettably under the pressure I said 'Yes!' and offered a 5% discount - that was over 6 months ago. Now comes the next quote and the client is asking for a discount again. So I am wondering how to solve this, I figure I have two options:

    1. Charge higher price to allow for discount
    2. Explain that the price already has a special discount included

    For the future I found this blog post, which has a very good rebuttal for clients that ask for discounts from design/programming companies:


    So for the future I plan to use that and not fall into the trap of being known as someone who gives discounts. However for this situation what would you guys do? Give the discount? or try and talk my way out of it?
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  • Profile picture of the author NewParadigm
    5%? It's nothing. Many good business people are conditioned to ask. Before you agree to a discount, ask them for something in return. Make them earn it to give you something of value in return. Like prepay as suggested earlier. Perfect. Or getting them to sign up for auto bill pay recurring CC charges for service. How about them agreeing to give you 5-10 solid referrals? Hell, I'd give a customer a free 5k package if they really worked hard and got me 50k in business etc...Giving you a video testimonial? Giving you more business such as getting their facebook promotion biz or their reputation mgt biz.

    I would price in a little wiggle room in your list prices. why? because many clients like to negotiate and feel like they got a deal. How many times do you brag to friends you got a discount? It's good word of mouth advertising when they tell 5 business owner friends they did a deal with YOU.
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  • Profile picture of the author iwillbeontop
    You've gotten yourself into a pickle...All you can do now is raise your prices.

    I never have and NEVER will give a discount. I'm not a discount business. I will however lower my price by taking away certain aspects and line items in my proposal. I learned that from the offline thread by Dexx and AP...

    Does Louis Vuitton have a sale rack in their store??????
    Food for thought....
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  • Profile picture of the author gcozzens
    I would explain that you are in a position where you are becoming more valuable and very busy. You'd like to keep them as a client but your time has become more valuable. (if they have been happy with your results). While you would like to continue to give them discounts, at some point it reaches the threshold and you are there.

    I think they will continue to squeeze until you say you've gone as far as you can.

    I hope this helps.
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  • Profile picture of the author AppsFromHome
    I'm with Aaron.

    If a client has a track record of paying on time and using my services on a monthly basis, I'll cut them a break every once in awhile.

    There's a certain client that comes to me on a monthly basis with "one off" campaigns that they can't fulfill in house. They're a BIG name IM agency and often need extra help. There's been a few times they ask for a favor with a price cut because of budgetary reasons and I'll glady abide.

    Why? Because its a reasonable discount every once in awhile and its always for campaigns over $2k. It's always good to over deliver and provide for your clients...it's your lifeblood to a successful business!
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    • Profile picture of the author DABK
      If you were going to get paid in installments, agree to the discount, if they pay you faster, give them a 7% discount if they pay upfront the whole amount.

      And, in the future, give them the price you want to get, and a couple of installment prices that add up to more.

      Prices is $10,000. You can pay it in 2 equal monthly installments of $5257 or 3 equal monthly installments of $3,777.

      Since he's asked for a 5%, I'd make the numbers work out so that the one installment is 5% smaller than the 2 month plan, which is 5% less than the 3 month plan.
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    • Profile picture of the author bizgrower
      Originally Posted by SDotSpells View Post

      I'm with Aaron.

      If a client has a track record of paying on time and using my services on a monthly basis, I'll cut them a break every once in awhile.

      There's a certain client that comes to me on a monthly basis with "one off" campaigns that they can't fulfill in house. They're a BIG name IM agency and often need extra help. There's been a few times they ask for a favor with a price cut because of budgetary reasons and I'll glady abide.

      Why? Because its a reasonable discount every once in awhile and its always for campaigns over $2k. It's always good to over deliver and provide for your clients...it's your lifeblood to a successful business!
      I agree with Aaron and SDotSpells:

      1) Have a strategy to regularly show customer appreciation.

      2) Make sure they are satisfied with services.

      3) Maybe they need help over a rough spot.
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  • Profile picture of the author misterme
    Originally Posted by mcflause View Post

    The author of the blog appears to be a web designer. I think where design is concerned this is a very valid objection to a request for a discount. However I can see what you mean with regards to other tasks where one person might be quicker than another (ie: digging a hole?)
    It's still valid. ANYTIME someone attempts to justify their price with how much time the assignment takes to do, the issue of whether they're efficient with that time can be questioned.

    Here's a phrase you may want to use on someone who says, "I got a discount last time": "That was then, this is now."

    Though to be frank, you did establish that discount with them last time and they're not out of bounds seeking it again. You can honor the discount and let them know it won't be offered after this time ever again, and at least keep grab this sale for now.
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    • Profile picture of the author Claude Whitacre
      Originally Posted by misterme View Post

      It's still valid. ANYTIME someone attempts to justify their price with how much time the assignment takes to do, the issue of whether they're efficient with that time can be questioned.

      Here's a phrase you may want to use on someone who says, "I got a discount last time": "That was then, this is now."

      Though to be frank, you did establish that discount with them last time and they're not out of bounds seeking it again. You can honor the discount and let them know it won't be offered after this time ever again, and at least keep grab this sale for now.
      Yeah, once you offer a discount...that becomes the price.
      In my retail business we raise prices occasionally, and sometimes people notice. Sometimes we offered a special, and no longer do.

      And when they say "You gave me a discount last time", I'll grin and say "My price went up...which...means....that...." And they always say "My price goes up too".
      I act like we all have to put up with price increases...and we do. But it sounds like it's fair.

      I have to add; Sometimes a customer will ask "What if I find this cheaper somewhere else? Will you refund the difference?"

      I always say "I know you want to be fair. So...If you find it for more somewhere else, will you pay me the difference?"

      Sometimes they laugh out loud. Sometimes they think I'm strange for asking.
      But I don't think I've lost a sale because of it. And sometimes I let myself play with my customers. It isn't something I would say if talking about thousands of dollars.
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  • Profile picture of the author AndrewCavanagh
    Originally Posted by mcflause View Post


    1. Charge higher price to allow for discount
    2. Explain that the price already has a special discount included
    Always quote high so you can negotiate down.

    Many business owners will ask you for a discount because they see
    it as part of the normal negotiating process.

    The good news is some people won't and you'll be charging more.

    One guideline you may find crazy is to quote twice the price you
    want and go from there.

    Most internet marketers never charge enough anyway so this is
    a good starting point.


    Another strategy is to list a few different services in your price
    quote.

    To drop price you can drop some of the services.


    I LOVE the idea of telling them you give a discount for paying
    everything upfront.

    Great idea when they ask for discount or try to negotiate you
    down.

    Kindest regards,
    Andrew Cavanagh
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  • Profile picture of the author Andrew H
    Thanks for all the input guys. I learnt some interesting things and will try to modify my technique regarding discounts.
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  • Profile picture of the author DABK
    Yup, they're inevitable. Even ridiculous discount requests are.

    When I had my appraisal company, lots of people asked for discounts. Discounts if I appraised a property I'd already appraised for them (which made sense, my appraisers had to do less work). Discounts if they had us appraised 2 or more condos in the same building (which made sense: saved us time on trips to inspect properties).

    Then there was the schmuck's request. A loan officer who worked for one of the mortgage brokerages we'd worked a lot with for over 2 years at the time wanted a 100% discount.

    Because HE was giving us so much work.

    He, himself, had given us 5 or 6 jobs in the previous 6 months or so (since he'd joined that brokerage). 6 jobs, under the best of circumstances, brought me no more than $7k in revenue... or about $1k profit.

    More likely about 10-20% less.

    I went to his boss and asked if my appraiser's report was so bad as to be utterly useless.

    She said, No. As a matter of fact, they closed the loan, got their $4k, loan officer got his $2k. Why did I ask?

    She chewed him up and he stopped hiring us (though the company kept placing the same 30 or so orders a month).

    And, there's the stupid one... Also from the appraisal world. New loan officer for one of the companies we worked with calls to ask what our prices were. At the time, I was charging only $300 for the most basic full appraisal.

    She said, Oh. My client only has $275 for the appraisal. She asked for a discount and I said, No. She sounded very disappointed and very something else... Made me call the her boss and tell his new loan officer did not place an appraisal order because of $25.

    He investigated: She'd called her borrower to tell him she could not do the deal.

    Her boss revived the loan AND gave her her cut. It was $1,750.

    She was quite willing to let go of $1,750 over $25.

    I'd promised myself that, one day, I'll sit down with loan officer and tell them that $1,750-25=$1,725, and that's a good chunk of money.

    I hereby solemnly swear to keep that promise one of these days.
    Originally Posted by soothsayerpg View Post

    But you assume this in the first place, right? These things are inevitable.
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  • Profile picture of the author JustinSch
    1) Whatever you think your services are worth always make your standard rates higher because... a) you're almost certainly worth more than you think you are b) you'll always have room to negotiate/discount

    2) Every service you offer should be a package with a list of good valuable stuff you include, for example with web design you could throw in matching social media pages, on site SEO, mobile landing page, email sign up forms, customer help desk, a blog, video support, photo galleries, google maps integration, analytics setup, social media sharing options, etc. If someone insists on a discount, it is absolutely fair, and doesn't at all seem rude to say "Sure I would love to give you a discount and help make this more affordable for you... which of these would you be willing to forgo in exchange for a discount?"

    3) Don't be desperate... always be willing to lose the project, but also willing to do what you can within reason to get it. FACT: Your services are worth more to them than their money is! If it wasn't they wouldn't be willing to pay anything. You are the expect, you have what they need, you provide greater value then your competitors (if you don't you need to start doing that), keep that in mind.

    4) It is ok to say "I would love to be able to give you a discount (or a bigger discount) but this is really the best I can do for you now. However I am confident that when you consider everything you're getting you'll realize it's worth more than what I am asking, if not that's ok too and I hope you find the right solution for you even if it isn't with me"
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