Negotiating With Clients is in Your Best Interest

ID-1009160How did you determine how to price your services? One reason you may be suffering with finding new clients could be due to how much you charge. If this is the case, more than likely you’ve heard this objection from current or potential clients before. While you may not want to consider negotiating, it really is in your best interest. Here’s why:

  • If you agree to at least negotiate on a price with a potential client, they may see you as empathetic and willing to work with them. Many people allow their emotions to help decide how they will spend their money, so developing a positive rapport may help you close with a client who otherwise was considering not spending money on your services.
  • Negotiating allows you to explain to your potential client why your fee is fair for the value of service they’d receive. If they can search the internet and find others in your industry who offer similar services for cheaper, this is especially important. You know you are worth the extra money; you just have to justify it to the client.
  • While negotiating, a potential client may mention a service that you don’t offer, but your competitor does. Hearing this kind of feedback can help you later when you’re looking to expand what you offer.

In the end, some people will be impossible to negotiate with. No matter how low you go, they will never buy your service. Don’t continue to lower your prices to try to get them to use you. Remember that your business first and foremost is a way for you to earn income. Never negotiate lower than you are willing to go.

What tips do you have for negotiating your price with potential clients? Share them with us in the comments below!

A Win-Win Way to Reward Referral Sources

If you’re looking for creative ways to give referral incentives, it’s worth considering a technique I like to call “Incentive Triangulation.” This is a powerful way of leveraging other people’s services to benefit your customers, clients or patients and reward those who refer you.

The concept is simple and can be designed to fit the needs or requirements of any business. For example, a retailer might negotiate an arrangement with another local business, such as a florist, printer or appliance store owner, whereby that store will provide its customers with a discount of 10 percent or more on their next purchase. After that, each time someone gives you a referral, reward him with whatever you would normally give as an incentive and also a coupon good for the discount at the prearranged business.

This form of joint venture is beneficial for all three parties, hence the term “Incentive Triangulation.”  You benefit because you are providing another incentive for people to refer you. The other business benefits because you are sending your clients to it, along with a recommendation, of course.

Finally, your clients will benefit because they got recognition for their effort as well as an additional product or service at a reduced rate.

If you have an example of how you’ve successfully used Incentive Triangulation, leave a comment and explain how you’ve used it. Your example could spark great ideas for other blog readers on how they might use the technique for their business.

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