Because there’s a good chance that he got other quotes and placed you in the continuum somewhere. It never pays to underestimate the purchasing intelligence of a buyer, particularly as the size of the company gets larger. Their research and negotiation skills often outstrip that of vendors (which includes people like us). For example, in high tech, savvy customers often know more about the pricing policies and practical constraints on their vendors than the vendors do themselves. It sounds silly, but it’s not.

Yes, one of the ways to take my statement on relative value is the way you did.

Also, I’m posting to this length not just for you, but many of your readers who may not have the same degree of business savvy.

I understand what you’re saying, and you’re right, but in my mind, it’s a theoretical concern. Meaning, I was pricing a web site of x length pages. How can someone compare that to any other project in the future? It’s not as if there was going to be another web site of exactly that length or even another web site, period. And if I then priced a brochure later at, in my mind, my normal rates (higher than earlier), how would he perceive that? Every project is different and it’s nearly impossible to tell the difference (especially when, as mentioned we’re talking a 10% difference).

Yes, I DO get that you’re talking about a general mindset on my part that can hurt me in the long run, but it wasn’t very long-term at all.

I liked the first line of your post: “Circumstances and the general environment can change your negotiation strategy because they can change your relative judgment of value.” I hear that in a few ways, one being that if (and it may not have been what you meant) I’ve got plenty of work, I’m going to be far less likely to want or need to discount my rates than if suddenly none of my clients are returning my calls and the ones who are are telling me I’m too expensive. Unlikely, I grant you, but you get what I’m saying.

As much as we’d all love to say we’re always going to “stick to our guns” on price no matter what, reality can change those convictions… Thankfully, I’m a good writer whose clients value what I do for them, and so I haven’t had to deal with any truly serious fallout from the economy as yet…

PB

Good points and well made. But understand this: I didn’t “drop” my price in the client’s eyes. It wasn’t as if I gave him a price and then lowered it under pressure, or even told him I was giving him a lower price than normal. He didn’t have any idea what my rates were. All that rate-drop discussion was going on in my own head. And as it was, he got delayed in moving forward (or so he says) and it’s never come to fruition…

But, all in all, you’re preaching to the choir. After 15 years in the business, trust me, I know all the games clients play to get a better price, and I’d do the same thing if I were in their shoes. When I wrote that post, I was in the midst of a very temporary nail-biting period, which has since passed. I am now working with several clients who haven’t put any pressure on me to do any price-dropping. All they ask of me is if the fee range I’ve given them for a project, say $1500-1800 actually comes in, time-wise, closer to the lower end, to only bill for that. And I do that anyway.

Thanks for the input – very worthwhile contribution!

PB

1) Yes, economic times are bad, but not everyone is doing badly, and not everyone has a smaller budget. If you drop your price in advance, especially with someone you haven’t’ worked for before, you weaken future negotiations and might even be doing so for no particularly good reason. Don’t judge someone else’s bank account by loud sounds of panic from third parties.

2) If someone is primarily motivated by costs, then the person will keep looking to cut costs, extending the pricing negotiation throughout the length of the project by asking for more of this or that, being slow on payment, and so on. It’s not necessarily the type of business you want.

3) Don’t let the mention of other writers bother you. Clients are almost *always* looking at various solutions and providers. To bring it up is a negotiation tactic in which the person thinks he or she will get a better price. So send your regular price and they will still think they’re getting a break because they don’t know what you’d normally charge.

4) Rolling back pricing because of the economy only makes sense when you get the client to appreciate the value of the concession on your part. If you haven’t done business before, they don’t know they’re getting a break. You’d need to get them to understand what you *would* have charged and that you’re only doing this because of the economy. And, as I think about it, that argument sounds really weak to me. Better you offered it as a one-time discount for a first project.

5) If you are giving in on price, is there something you can get in return? One writer on Freelance Success who had responded to my post there noted that she had gotten a guarantee of work over a year from an existing client that needed a drop in rate. Guaranteed work has a specific monetary value that you can calculate and then weigh as part of your decision process.

6) The answer to slow business is not to drop prices, because then you are branding yourself a commodity by the action. Instead, significantly increase the amount of marketing. This becomes particularly important for writers who are established because it’s easy to get used to an incoming flow of business from referrals and repeat clients. What is happening is that your converstion from marketing to assignment ration is decreasing. To avoid losing income, increase the pool.

7) Also remember that many clients will complain about the economy because they’re hoping to get more for less. It’s not that they can’t afford your usual rates. They just want to see if they can get you to drop them. Do so, and you’ll never get them back up again.

PB

Good stuff. Never know where something could lead!

PB

*Incidentally, here’s the orthodontist’s site, which didn’t take me terribly long to do.

You’re absolutely right – that is always the ideal strategy, and if we can do that, we sidestep the price game completely. That said, for some clients, in some situations, who would otherwise cut back, being sensitive to their budget constraints can endear you to someone for the long haul. But, you’re right – let’s just not even have to play that game. Thanks for weighing in!

PB