You gotta know when to hold ‘em

No matter what your pricing strategy is, it can be challenging to stick to your fees when someone asks for a discount. Do you give a reduced fee to anyone who asks? Do you forgo discounts and always charge your full fee? The bottom line is you gotta know when to hold ‘em and you gotta know when to fold ‘em.?

If that line sounds familiar it's because it's from a Kenny Rogers’ song called the Gambler. (Millennial and Gen Z alert: Kenny was a country music superstar in the late 1970s and 1980s). While Kenny was referring to cards in a poker hand, the advice also applies to fee negotiations. You have to know when to stick to your pricing and when to offer a discount. These are not always easy decisions and ones that require you to be strategic, slow down, and trust your gut.?

Here are 5 instances when you need to hold ‘em and stick your fees:?

1. Your prospect has the budget. If the company or person asking for a lower price has money to invest in similar services but doesn't want to compensate you, stop and really think about what it would mean to do the work for less. Often this type of buyer just needs to ask for the discount and if you hold firm, you will close the deal at your full fee.?
2. It’s not your ideal client. Making fee exceptions for prospects that don’t fit your ideal profile is a slippery slope. Think about why you are considering working with this person or organization and how this might distract you from your growth goals and building a practice full of great clients that see your value and are willing to pay for it.??
3. You have limited availability. The busier you get, the less you should discount your fees. The spots remaining in your client roster need to be filled with high quality clients that see your value, are willing to pay for it, and appreciate that you don’t just see anyone. If you pass on discounting your fee, a new prospect will come along willing to pay full fee in no time.?
4. Saying yes is too costly. Every time we compromise our pricing strategy, we risk hurting ourselves. Establish good boundaries and policies around discounting fees and remember, saying yes may feel good in the moment but can be very costly in the long run. You don’t have to pay that price.?
5. You will end up resentful. ?If you believe that negotiating your fee downward will make you disgruntled then decline to drop your fee. When you have negative emotions about your fee agreement, it’s bound to bleed over into your work. Save both you and the client the trouble, and let them know you would love to work with them at the fee you originally quoted.?

Staying true to your pricing strategy isn’t always easy, but it's worth the effort. When you know your value, communicate it clearly and stay true to your fees, others will do the same.??