Question about Offline Marketing Fees and Prices

Wow.

Wow.

Bend Over, Here It Comes Again. BOHICA!


The one thing this poster got right is that he doesn't know what's going on with your prospect.

But bending over and giving in just because someone asks you for a discount? No sir. Find out why this client is asking for the discount.

Some people ask for discounts as a matter of course. Just to see what they can get away with. "No." "Okay." That could be your response and their reaction. You don't know yet, though.

When I get pissed off about something, like this morning when I discovered the bank charging me $30 for the privilege of cancelling a check that got lost in the mail--without informing me that there would be a charge--I call and man I roar. I vocally share just how disappointed I am with their actions. I threaten to take my business elsewhere at the drop of a hat. I don't really mean it usually, because that would be a hassle, but I'll say it and convincingly so. (I got my $30 refunded.) Looking out for your own interest is totally fair. So expect that some people will just stick up their hand and ask for a discount, just to see what will happen. Maybe you will cave. But I wouldn't follow that advice at all.

For all you know, some new manager just got hired on there, and they're shaking the trees to see what falls out. Happens all the time.

Who was the original person you signed your agreement with? Call them up. Say your surprised, and a little hurt. That they must not be valuing your services very much. Then shut up and listen.

Find out the real underlying reason why this request has suddenly come up.

Then you can deal with it in an intelligent manner. And if all your client is interested in is price-shopping, you have a problem with your qualification process or the delivery of what you do.

At least you'll be able to negotiate. Don't just bend over.

And there's no problem with standing firm, "my rates are my rates; they're fair for the value I give you", and if they don't agree you had better find out why.

Are they paying you for a service?

And they're asking you to discount your rates?

Then they're a client. An internal client perhaps, but a client.


Now we are getting somewhere as to the reason.

Depending on your own situation and cash flow...

01. Are you in a position to offer your business partner and their SEO Agency net 150 for the discounted amount that they are asking for,

02. Would still be able to perform the service and operate while giving them the added cash flow they're seeking so that you get paid the same amount and profit you are now when they receive payments from there clients.

NET 150? Are you frigg'n kidding me? This is a MAJOR problem and it's not your problem, but they are trying to make it your problem by asking you do reduce your pricing just because they "claim" all the other vendors are doing it? Pfft.

You need to really think about what you want to do, if you can afford to loose the work then don't budge on your pricing.

It DOES matter, because it shows how you are thinking about this!

Again, you have to get on the phone or go meet with these guys in person and find out what the deep level issue is.

If they are having cashflow problems don't you want to know about it?

Then you can collaboratively arrive at a solution. This is negotiation. Don't make the mistake of thinking that they are your friends. It's business. If they can take extra percentage points from you because of a perceived weakness, and keep them for themselves, they'll do it. I would.

Anyway, much better than just falling over and giving them what they ask for. What happens the next time they try this? Because there will be a next time. How you deal with it now sets the tone going forward.

I've had this happen a couple of times. Not business partners, but clients.

Here's what I would say in youir position;

"We both want to be fair. We already agreed on a price and getting paid up front was part of the agreement. We already have an agreement in place for the business we are doing now. And I want to always honor the agreements I've made with you.

You pay the same...no matter the volume. And I won't charge more no matter my costs. Fair enough?"

If you don't think they will just bail completely, I'd use it.

Remember;
We already have an agreement
I am going to honor that agreement
Part of the reason you get my price is that you pay up front. It isn't a favor to me.
I won't raise my price because of costs, and I won't lower it because of volume. We already have a deal.

Smile, be sincere.


It's an idea. And I've used almost that exact verbage before.

Things to consider before you decide:

Do they know how big a source of income they are for you? (They shouldn't but, maybe, you told them.) If they do, you're in a weaker position if they think they're hard to replace...

If they like your work, they save by giving you so much... If they had to split the work they give you between 3 other suppliers, they'd have to deal with 3 supplier... that takes time... They need to make 3 phone calls to find out the status of the job... write 3 checks... trust 3... Lots of things go up by a certain factor on their end.

Besides lots of volume, they give nothing... You reduce your prices and they give you less volume... Then what?

Let me give 2 examples... how I dealt with the same way back when I had a real estate appraisal company...

My biggest client wanted discounts... because of volume, they said. They liked my company's work. When you do appraisals, if you've appraised once a property, you have lots of information, including a sketch of the property... The 2nd time you appraise it, you don't need to do that part of the work... So, I gave them a discount on all appraisers of properties I would do for them a 2nd, 3rd, nth time... but not the 1st. They liked that.

Is there something like that you do?

Another client, much smaller, also thought he was giving me big volume. And wanted a discount. He, too, liked the work my company did... and how fast we did it.

I didn't feel like offering him anything... They were not big, most months they gave me 10-12 jobs a month ($3600-6500 in revenue). Some months, though, they'd give as low as 6 jobs.

So, I proposed I'd give them 20% discount. In exchange, they give me a minimum of 9 jobs a month. On months they came short, they'd still have to pay for 9.

He didn't like my idea, didn't drop me either.

The point, if they're giving you volume, make a written agreement: you give up x%, they guarantee $x a month in work.

Finally, it's time you got more sources of income.

If you had 15 outfits giving you 1 or 2 jobs, you wouldn't be sweating it if one or two of them took a hike.