A client was asked to provide a quote to deliver social media and marketing guidance and support on a retainer.
Like many service providers, she found herself in a challenging situation, unsure of what to charge for her valuable services.
Her prospect was on a tight timeframe to launch their new products and services and wanted someone on board immediately and could hit the ground running.
Despite working together several years ago, she found herself in a dilemma. On one hand, she was hesitant to raise her rate, fearing they would say no and she would lose the work.
On the other hand, she was concerned that because she had been out of the market for some time, she did not know what to charge, and they may decline her quote.
Her safe approach was to increase her fees only by 10%, which was small compared to the revenue the client would generate through the value she added and the success of their new product and service launch.
She inadvertently downplayed her extensive 20 years of experience in the field. Sometimes, when you are in a place of desperation, it’s easy to do this.
We discussed an alternative approach, and she started to recognise the difference her expertise could make: to give them peace of mind for a start. They knew that all would be well if she were at the helm.
We developed a 3-month package of options at a higher rate—over 200% above her usual fee.
She was understandably nervous about submitting the proposal, but I encouraged her to find the courage and did it anyway.
The client instantly responded with, “Spot on. Let’s commit to three months at this level of support, after which we will review and see where we are. ”
Understanding the client’s perspective is crucial in any negotiation. You’ll never know how important it is to the client unless you ask them and never think you know their situation better than they do.
This empathy is a key factor in successful negotiations at any level of sales.
