Should you negotiate (or discount) your prices?
We had a really interesting discussion during one of my Mentorship calls this week about negotiating your rates.
If you told someone your rates and they asked you for a lower or different price, are you willing to negotiate?
I take a very firm stand on not negotiating or discounting – for the reasons I mention below – whereas others in the group have and will negotiate with potential clients.
Why won’t I negotiate?
- I know what I’m worth – I’ve done a lot of work in my business around this and am very purposeful in my pricing and how I package and offer my services. I’m not willing to change that. And if I do a good job of demonstrating the value of what I offer during the sales process, then it shouldn’t even come up.
- I don’t ask for discounts from other people – I’m a believer that if I ask for or expect other people to negotiate their rates or give me a discount, then I’m expected to do the same! (If you are someone who asks for a discount, don’t be surprised if people refuse to pay your full price.)
- I’ve seen too many people discount their rates and have it come back to haunt them – countless times I’ve seen people agree to a lower rate because they wanted the money or wanted to work with that person… only to have it come back to haunt them down the road. If you negotiate too far beyond what you are worth, it will cause issues down the road, usually in the form of resentment, sour relationships and mismatched expectations.
- I’m not a good negotiator – on my honeymoon in Mexico years ago, I actually offered to pay *more* to the guy selling me a bracelet vs. trying to negotiate him down to less. It’s just not something I’m good at or enjoy doing, so I don’t. 😉
Bottom line – know what you are worth and stick to your guns. And if you are a good negotiator maybe you “go there”, but if you are like me, then stick to your guns. 😉
How about you? Are you willing to negotiate your rates? And if so, what criteria do you use in your negotiations? When you have negotiated for a lower or different rate, how did it work out?