My clients rarely try to negotiate with me, but every once in a while they do. Here is a potential client who did. We had talked on the phone and I quoted him a price of $15K and they pick up the hotel room. Both emails below have been modified to hide their identities.
It was good speaking with you Tuesday regarding our Onsite in March.
As we are working through the agenda and budget trade-offs, can we make this work for $10k plus sponsored lodging? We would certainly be appreciative. Given what we are spending to bring everyone in from newly-acquired operating companies, we are mindful of the budget here but also know this is a high ROI workshop and would like to expose as many CEOs to your work as possible.
Here is my response. Please notice how I negotiate, and that I teach even in my response.
I enjoyed our conversation Tuesday as well. When someone asks me for a discount, I assume it’s a test to see how I respond. After all, who would hire a “pricing expert” who easily discounts their price?
During your Onsite, I will deliver practical and actionable ideas to your CEOs. Let’s say they only increase total profitability across all companies by $1M, which they should exceed significantly. That’s probably a $5-10M increase in valuation and completely dwarfs a $15K investment.
Hence, I’m sorry I can’t offer you a discount. If we enlarge our engagement, I would consider it. For example, I do Bootcamps for PE and VC firms, 3 or 4 companies at a time, for $25K. They arrange the logistics. If you would commit to at least one Bootcamp, I would present at your Onsite for $10K.
JFYI, if this was a “test,” here is what I just did. I re-emphasized the value of what you will receive. I then offered you a discount as long as you gave me something in return. This is a give-to-get. If I discount without getting something in return, then my price seems random and made up, reducing your trust in me.
I’d love to hear your thoughts on this. Now, go make an Impact!
price, prices, value