So after years, and I mean YEARS of coming to the table to justify my Haus’ pricing; I have learned that after the initial proposal process, it is essential to be well prepared to negotiate your fee. After all, this is the amount you will be paid for your hard work and time, and the end product. So in the effort to aid and abet in helping you secure your amount we thought to give you some easy solutions. Now far be it for us to say that we are experts but we will throw in some of their opinions as well.
In the initial conversation people often give you a fast synopsis of their needs and or requirements. This will often then lead them to ask you for your pricing. We often recommend against giving any rushed quotes if there are variables that haven’t been answered. If you work in a product oriented industry where the price is set, please set your product to have the right level of profit. The product at least needs to cover the overhead price to make said product. But from my own experience of providing a service, with often tiered and various levels, the pricing can vary dramatically. But the bottomline is that if you speak with confidence and you negotiate correctly, you are worth your price.
So you have met said client for the first time, lets then follow up the inperson or opening communication with a follow up meeting. We at the CITI camp use this opening meeting as an opportunity to delve into the prospective clients’ project and boy can they vary (billboards, social media campaigns, branding, Web development, integrate advertising planning), and along with them comes various levels of budgets. But we NEVER speak numbers until after our initial meeting. We ask the prospective clients for several questions and in return ask them to share their vision, dream, target success point! We want to know all aspects so we can then tailor the project proposal to them. In this proposal, we detail their needs and how what tools we would use to make the project successful. Then lastly our proposed budget is wrapped in a bow (not literally, we don’t do bows at MEDINA = CITI). Afterwards our clients respond, call, email or we meet to follow up for a budgets meeting.
Now pay attention people, that is our “ideal” situation, but there are times when we have to have budget meetings. This is where the negotiation process happens, most experts say the battle for price is often won or loss before you enter the conference room. This is so true! Entrepreneurs know your bottom line. The bottom line is your absolute lowest price you will take. This is important because you never want to take on a project that will in fact be more effort than return. This is business so put your emotions on the back burner. Tthe only reason you should take a job at a lower than a bottom line amount is for the opportunity for further exposure, solid opportunities not promised ones. But really go in with what your optimal price point is. One of our key points, is to give a client a product that is within their price point but remove elements to stay within an adequate price point for your company. An example, “I can provide you with A, B, and C but D, E, and F are not possible at this budget. Perhaps we can observe these elements in phase 2.” I am giving the client a solid product but have removed certain elements that make it come into their budget and opened up possibilities for future work.
So this wraps up the art of negotiation. Be knowledgeable about what is being asked or the price of your product, you want to make a profit. So you can continue to provide your service and live your dream, essentially.
INC has an awesome article on How to Negotiate
Want to know more about the Art of negotiating we loved Entrepreneurs article on it.