Blog » 9 Ways to Get a Bargain on Professional Services
9 Ways to Get a Bargain on Professional Services
Last week I wrote about ways clients increase the cost of their copywriting services, 7 Surefire Ways to Increase your Copywriting Fees. The post was pretty much a flop. It didn’t get a lot of traffic and only garnered one comment. I was surprised. It provided inside information on pricing along with insight to how client behaviour influences a costing exercise. This week I’m taking a different approach.
How can you get a bargain on professional services?
I know I’m not alone in the pursuit of a good deal. As the owner of a SMB, it’s important for me to get value for money. I want to ensure I’m getting a quality product but I also can’t afford to pay a premium price to every vendor or service provider. To balance last week’s post with a positive spin, I’m sharing things that influence me to discount my normal rates.
1) Repeat business – If I have a client continually sending work my way, my appreciation is reflected in the project pricing. Clayko Group was one of my first clients and continues to enlist my services in their strategic projects. Because I’m so familiar with their company, I can complete their projects much more efficiently which saves them money.
2) Not for Profits – In a nod to a loosely defined CSR policy for my business, I automatically knock 20% off the rates for Not for Profit (NFP) and charity organisations.
3) Start-up SMBs – When you’re trying to get a business off the ground, the expenses mount fast. An owner with the foresight to invest in quality copywriting gets a discount from me.
4) New clients – If a new client pushes me on price, I consider giving them a “new client incentive” on the first project.
5) Something new – It’s always good to expand my reach either by geography or by industry. If the project is going to open a new market for me, I’ll lower my rates to stretch my wings. Fitzgerald Photo Imaging got a great rate on a magazine article because of my personal goal to be published in an Australian periodical.
6) Balances the portfolio – I specialise in a couple different areas - white papers, case studies, blogs and website copy. If I find one part of my mix has hit a slow patch, I’ll put a sale on a specific product to attract more work in that area.
7) New territory – Occasionally an existing client will ask me to write something I’ve never done before. If it’s outside of my comfort zone or I’m inexperienced in the genre, I’ll often suggest a barter deal instead of charging a fee.
8) Fun projects – If I feel passionately about a project or the company that’s hiring me, I often find myself knocking the quoted price down a bit. If work doesn’t seem so much like, well, work then it doesn’t always get priced that way, either.
9) Easy money – I collaborate with different companies on different projects. If I haven’t had to make any effort in securing the work, I’ll give a good rate to the person that delivered the package. Ryan Briggs is particularly good at generating business for me. He often wraps it up in a pretty copy brief which also improves the pricing.
I can think of plenty more circumstances where I would be willing to give a discount on my services but I’d better leave it at nine. Regardless of the project and the influences on pricing, I always quote on a fixed price project basis and never change the terms once the project has started. While it’s always a bonus to get a deal on a project, I believe the most important thing when it comes to pricing is transparency. When everyone knows the budget for a project from the onset, the whole thing runs smoother.
When do you give discounts? When do you expect to get them?
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Hi Brandy,
You're so right about people with sound business relationships getting better pricing. Some people call this favouritism but I look at it as economy of scale. If I don't have to work as hard to get the business, I can give my clients a break on the built-in marketing costs attached to my services. Thanks for your insight and thoughtful comment.Posted by Sarah Mitchell, 23/06/2010 8:09am (2 years ago)
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We are a full service IT consulting firm in Massillon Ohio. Our customers are E commerce and small/medium businesses.
We definitely discount non profits and charities. But our biggest discounts go to customers who purchase labor upfront (sort of bulk purchasing)!
We also tend to discount customers who partner with us. We try to find common interests with our customers. We take them golfing, fishing, four-wheeling, etc. When we create this friendship/partnership we often add discounts to our services. Our philosophy is that this partnership leads to introductions to other businesses our customers associate. We become a community helping one another out, and have some fun in the mean time.Posted by Brandy, 23/06/2010 7:46am (2 years ago)
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Hi Paul,
One thing I've learned this week is that grumbling gets attention which also surprised me. Don't worry, it's not going to become a habit.
I think it's really important to be transparent with pricing. The onus is on me, the service provider, to establish value for my services. It's up to the customer to decide whether or not they agree with my assessment.
If someone comes to me looking for the best price, they're not going to find it. However, if they come looking for a great product and a committed partner for their project, they'll go away happy.
And, yes, I've got to get better about including images in my posts. Thanks for the reminder!
Posted by Sarah Mitchell, 13/04/2010 4:06pm (2 years ago)
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Dear Sarah, I'm sorry your last post was a fizzer.
I read it, but it just didn't grab me. Can't really say why.
This one is better (though I wish it had a pic!). I'm particularly impressed with how open and honest you've been about your pricing practices.
Fainter hearts would quail at that.
I hope this outing garners the attention and feedback it deserves.
Best regards and good on you! P. :)Posted by Paul Hassing, 13/04/2010 3:29pm (2 years ago)
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Hi Gary,
You raise some very valid points and I couldn't agree with you more. As you say, once you start competing on price, the only way to go is down and you'll take your business with it.
Still, there are times when it's actually cost effective for me to give a client a break and I mention some of them here - to secure a new client, when there's long-term work ahead, when there's little or no cost to obtaining the business (marketing/sales expenses) and when I've got no experience with the project requested. (For example, I was recently asked to write scripts for a video. I've never done it before and couldn't justify my normal project rate for a learning curve.)
I factor the discounts I give to Not For Profits into the cost of running my Corporate Social Responsibility program.
While I do give Start-up SMBs a break on my rates, I don't have many of them knocking on my door. It's all too easy to get a $5 writer on eLance. The people that come to me are not hobbyist business people. Instead, they're looking at their copy as a strategic part of their launch and are willing to make an investment in their collateral. As they become commercially viable, I bring their rates up. They know this from the onset so it truly is a discount and not a race to the bottom.
The key to pricing, in my opinion, is to sell the client on the value of the service. If they agree they'll get value for their investment, there's no further discussion about price. If they don't agree, either I haven't done my job or they're not the right client for me.
Thanks for stopping by and raising the issue on discounting as a policy. It's certainly not how I operate.Posted by Sarah Mitchell, 13/04/2010 7:34am (2 years ago)
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I really disagree with this practice of penny pinching to get a bargain.
When at the end of the day if you do this with small business you will not be getting a bargain at all just a reduced service.
Undervaluing your service is just a dangerous thing to do.
This starts the dreaded race for the bottom, who can undervalue their services the most to win - or add incentive to business.
Cheapening a rate for me in the first sign of danger. This means you have to work longer , harder to make the same profit. This generates a feeling of displeasure with the client concerned.
Personally I don't expect cheap rates, but I do expect a professional service not a discounted service.
When a client asks for discounted rate, I usually refuse to move on the quote or just offer a reduced scope for their budget.
I have learnt over 15 years in business that there are people that will race for the bottom, and those that offer a quality service at a standard price.
I don't do races in price ever.
Posted by Gary Barber, 13/04/2010 7:00am (2 years ago)
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