I Let A Client Negotiate Me Down And Immediately Regretted It 🔥
Client asked: "Can you do $800 instead of $1,500?" I said yes. Felt grateful to get the work. Two weeks later, same client referred me to their business partner. That referral paid my asking price ($1,500) without negotiating. Then mentioned: "John told me he got you for $800. I'm happy to pay full price though - this is solving a massive problem for us." Ouch. THE LESSON: Your pricing communicates your value. When you discount easily, you signal your work isn't worth your asking price. BETTER NEGOTIATION FRAMEWORK: When they ask for discount: "I understand budget is a consideration. The $1,500 reflects the time I'll save you annually. Can I ask - what would handling these documents manually cost you this year?" Usually they calculate it out and realize your fee is tiny compared to their pain. If they still push back: OPTION 1: Reduce scope "I can do $800 if we simplify to just invoice extraction without the automated posting to QuickBooks. You'd still save 80% of the manual work." OPTION 2: Payment plan "I can do $500 upfront, then $250/month for 4 months. Total $1,500." OPTION 3: Volume discount on referrals "I'll hold at $1,500 for you. But if you refer another client who signs, I'll give you both $200 credit on monthly fees." NEVER just drop your price without getting something back. REAL SITUATION I HANDLED BETTER: Insurance broker: "Can you do $1,000 instead of $1,800?" My response: "The $1,800 reflects the full automation - extraction, posting to your system, and error handling. I could do $1,000 if we implement just the document parsing and you manually review and post the extracted data. That would still save you 60% of the time. Would that work?" Her: "No, I need it fully automated. I'll pay the $1,800." PRICING PSYCHOLOGY: When you confidently explain your pricing and offer alternatives that REDUCE SCOPE rather than reduce price, clients usually stick with your original proposal. The workflow value here