How To Negotiate With A Client You Can’t Afford To Lose
Negotiating is challenging enough, but the stakes are especially high if you are talking to a client you can’t afford to lose.
The fact that a client is very valuable doesn’t mean you have to do everything they ask. You still have a platform to negotiate for the prices and terms you need. You just need to approach the interaction wisely.
Here’s what you need to know if you’re about to negotiate with a customer you can’t afford to lose.
Understand That You’re Valuable to Them Too
There’s a reason a high-value client is working with you and not another vendor. You’ve developed a good relationship with them and you’re providing value to them that your competitors could not.
This means that you aren’t powerless when it comes to changing your pricing, delivery schedule, or other terms. You have something they need, and that means you have more equal negotiating power than you thought.
Remind the client of the positive interactions you’ve had and the times they were delighted with your work. Then, be quiet and let them answer. It’s OK to have some silence. You might be surprised at how quickly they agree and move on.
Realize That Lowering Prices Now Leads to More Low Prices
You might think that lowering prices for a high-value client wouldn’t be a big deal “just this time,” but make sure you keep in mind that lowering prices now sets the stage for additional demands in the future.
On top of that, other clients may find out about the price cut and demand a concession of their own. This can quickly lead to a downward spiral where your “valuable client” sinks your business!
Finally, the lower your prices are, the lower your perceived value is. You don’t want to race to the bottom where you’re competing against low-quality products and services from other companies. Stand apart by standing up for your pricing and the quality you provide.
Some Customers Play Hardball For No Reason
You might think a demand of “cut the cost or you might lose us,” means that the client already has another offer. That’s often not the case.
Instead, buyers may make a big ask at the end of the negotiation simply to see what they can get. After all, it costs them nothing to ask — you can always say no, and they’ll simply move forward with the current arrangement.
Don’t make a decision based on emotion instead of business sense. Giving in simply conditions the client to expect something for nothing in the future. Instead, focus on variables you can work with that are in the client’s interest. There’s a lot to talk about besides price.
When you show that you can’t be pushed around, the client is likely to have more respect for you and your business. This can lead to less pressure in the future, along with protecting your profit margins.
Position Yourself As a High-Quality Provider
The quality of your products or services can help set you apart from competitors and also justifies a higher price. It’s harder for a client to force a concession when you share the value you provide.
Remember that you have more leverage than you think. The client doesn’t really want to walk away and have to find a new vendor, learn a new system, and set up a new relationship. They may just be asking to see if any concessions are available.
If they do leave? Perhaps they weren’t that important of a client after all. A customer that constantly pushes for discounts and concessions hurts your business, rather than helping.
If you’re ready to negotiate more successfully, we can help. Check out other articles on our blog today!
