5 Ways Graphic Designers Can Win Over Price Objections
The key to getting the highest price for your work is to be efficient at negotiating
Article by Michael Huggins, RGD
A well planned, well written proposal is often a required component of getting the type of work you want. Get use to doing them if you want better clients or higher paying projects.
But what happens when you’ve presented your proposal and your
client says “I’m sorry, I like your proposal, but your price is too
high.”
What do you do?
You could just drop your price (but that’s not always wise). Dropping your price to meet their budget number is the quickest way to devalue your services. And a fast way to commoditize what you do.
But there IS another option. You could negotiate.
When you find yourself in this situation, you can start by asking your client a simple question: “Are you open to looking at other options so we can find a way to work together on this?” If they say “yes” (and they almost always do) then you are ready to start negotiating.
Don’t let negotiation frighten you. It doesn’t have to be head-to-head combat. View negotiation like a type of fact-finding mission – one where you are trying to find a mutual solution for both you and your client. In fact, your negotiation will go much better if you simply try to discover what your clients expectations are.
You can start off your mission with one very direct question to your client… “What were you hoping to pay for these design services?” Their answer will reveal if you are ‘in the ball park’ or if they are ‘out-to-lunch’.
If the numbers are workable (meaning you can reduce your cost and still be profitable) then negotiate with your client using other aspects of your service as bargaining tools.
What can you negotiate with? Here are 5 things I use in my negotiation process…
1. Offer a discount for projects paid in advance
One immediate way to reduce your price is to offer an incentive to
your client for paying in advance.
Offer a 10% discount on your price for orders paid up-front. In
fact, some companies even have policies that require them to go
with the supplier that offers these types of discounts. This is a powerful incentive to your client because they see an
immediate savings. And it’s valuable to you because you are
creating much needed cash-flow (worth the discount)!
2. Break the project into phases
This approach works really well with big projects that have many
components or have an undefined finished size.
Some projects like websites may start off so large in scope that they carry a big price tag that the client is unwilling to pay in one lump sum. These types of projects can be broken down into phases or sections and billed as each stage is complete.
Often you can complete other components at a later date as a completely separate project.
If you are starting large projects close to the end of your
client’s budget timeline, you can work this to your advantage even
more. Because your client can break up their large costs over two
different budgets, softening the impact of a large price tag item
while still leaving room for other projects in each budget.
3. Combine more projects for a reduced rate
Often when you go through the briefing process the client shares
their intention to follow-up with future projects. Keep note of
this, and use it to your advantage.
For instance your client may ask you to put a proposal together for a sales kit that involves Folders, corporate brochures, client lists etc… with the intention of adding sell sheets to the project scope shortly after the first phase is completed.
You can encourage your client to initiate the future project NOW at
a discounted rate rather than wait. Thereby reducing their overall
unit cost. And the large scope of work to you is worth taking on at
a lower rate if for no other reason than the “insurance of future
work” factor!
4. Offer reduced rates in exchange for longer lead-times
Another way to reduce costs without depreciating the value of your
work is to offer a discounted rate in exchange for longer lead
times.
This allows you to schedule the project into the slower or quieter times of your business (such as off-season work, scheduled client project reviews and the client approval process).
The client will appreciate the price break and you will be able to
book a full, steady schedule of work into your business.
5. Alter your creative process
Finally, you can alter your creative process. In my design process for example, I try to present no less than 3
concepts per project. If any of my clients have a concern for the
initial costs I present I can easily reduce the design time by
removing the additional concept time.
They don’t get the benefit of design exploration but they do see an
immediate cost savings. In some cases I got the project by reducing
the number of concepts in order to be cost competitive – only to
build it back in once I have been awarded the project. Having a set design pattern and process is just one way you can
automatically build-in future negotiation tools.
The key to getting the highest price is to be comfortable and efficient at negotiating.
Never drop your rates without negotiating for something in return.
Isn’t this a little more difficult and more involved than just lowering your price? A little. But you prevent your client from reducing your services to a commodity and shopping your services against other competitors in the process.
Believe me it’s worth it.
Dedicated to Graphic Designer Success
Michael@forgraphicdesignersonly.com
Tel: 905-873-0433
ForGraphicDesignersOnly.com
[BACK TO TOP]