You’ve just submitted a 5 page fixed-price proposal for a Salesforce project. The client is shocked your prices are so high and attempts to negotiate. What do you do?

To start, there are two things to consider:

1. Perhaps you didn’t assess the situation correctly
If your prices are actually too high, it’s possible you misread the situation. Perhaps you expected the client to have the budget or the need is high enough to support the prices, but you were wrong.

This usually happens when you’re beginning to write fixed proposals. See option A below.

2. You didn’t market yourself correctly
Perhaps the client doesn’t believe you are the authority you claim to be. Or they don’t believe you can actually solve their problems. This usually means you’ll lose this project, and need to spendĀ  more time on your positioning.

If these considerations are not a factor, here are your negotiating options:

A. Change your options
Instead of lowering your prices, reduce the scope and offer alternative, lower priced, options.

B. Change your payment structure
Sometimes clients cannot pay upfront and in-full (and you should always attempt to charge upfront and in-full). You can offer a 50%-50% option, or some other structure to make the payment easier to digest.

C. Refuse the project
You always have the option to walk away from this project, keeping your door open for a good client that’s ready to sign.

The takeaway
Whatever you do, don’t reduce your prices, as you will be perceived as unsure of yourself. You’re also training your client to expect discounts if they complain.

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