I worked quite hard to add a client to my list. We spoke several times by phone. I crafted and emailed a proposal. Patiently, I stayed in touch over five months, checking in, periodically. Then, we set a meeting at which I outlined a streamlined proposal, a great fit for them. And within a few days, I was told they want to begin, but the price for my services is too high, according to the boss. What in the world does this mean, too high? (1) Does this mean theyd simply like to pay less, getting what they consider a better bargain? (2) Does this mean theyre willing to cut back the scope of the project, because right now, the cash flow they have cant support such a large endeavor, as proposed? (3) Does this mean they have a credible comparison bid to which they can point, that meets my proposal jot for jot? (4) Does this mean they have seen my price, and they just have a bias that tells them services of this type should be cheaper? (5) Do they believe that theyre so inept that they wont be able to capitalize on the value inherent in the program; i.e. that theyre dummies, and theyll probably not get what others would get from such assistance? (6) Do they think all proposals contain fluff, and they want to shake it out of mine? (7) Do they believe theyre hotshot negotiators, or foolish to accept the price of anything, exactly as proposed? If youre a coach or a consultant, as I am, you face a challenge in pricing your services in light of their actual value with regard to the contribution theyre going to make. Lets say, youre going to help a client to earn an additional million dollars, net, after employing you. How much of that are you worth, in exchange? Ten, twenty, thirty percent? There is no standard answer. And the same principle applies to your compensation as an employee. Youre unique, so there may be others who will agree to labor for 80% of your expected rate of pay, but they may be 50% as efficient or effective as you are. Remember this as you negotiate compensation. Your worth isnt a number that can be scientifically derived, so hold out for what you believe represents value, all around! |