When a Client Asks for a Discount

Don’t you just love it when a client looks at your quotation and asks you for a discount?

It drives me barmy. Always has.

Rather than cave in, try a new course of action:

1. Push for an explanation
The starting point in this whole topic is to find out why you’re being asked to do something for less. Is it because budgets are being cut? Is it because your client is one of those bullies who feels compelled to push for a discount? Or is it because your rate is high when compared to others? Whatever the reason, you need to know and it’s OK to ask.

2. Consider your response
… to the budget cut

If this is the explanation, your response should look at what services you’ll have to cut to achieve the new budget. A good response may be: “I’m sorry your budget has been cut, let’s look at my cost centres and see what areas can be simplified or removed.” Don’t drop your hourly rate. Don’t do more or the same for less.

… to the client who likes bullying suppliers

This signals a non-ideal client, but maybe one that is repairable. Often a client bullies when he doesn’t fully grasp what you do. A good response can be: “The fact you’re asking me to discount suggests you don’t see the full value of my work. Kindly tell me what areas need further clarification and we can discuss this.” Talking in this way opens up extra dialogue and allows you to make suggestions, guarantees or offers that dispel concern while maintaining your rates.

… when your rate is high compared to others

This is the tricky one. Again this points to a client who is not ideal, but probably because you’ve set your sights too low. It could be time to review your positioning and your service offering. For now though let’s assume that to stay with the work you have no option than to consider a reduction in your fees.

In my next post, I’ll look at ways to handle the situation if you reckon that a reduction in fees is required.