How to Negotiate Your Rates With New Clients: 3 Things You ...

For freelancers, setting the right price for our services is challenging enough. Achieving it without scaring away your potential clients is more intimidating.

When clients try to negotiate your rates down, it?s natural to feel awkward ? to the point that you might consider backing out of the negotiation completely. But, there is no need to do this. In freelancing, just like in any business, negotiation is common and even expected. Clients will always try to haggle in case there?s a chance of getting a better price.

So how do you deal with negotiating clients?

First, here?s what NOT to do. You shouldn?t:

• tell them that you?re offended, hurt, angry, or feel undervalued,
• ignore the client completely,
• or reaffirm your rates without explanation.

Instead, you can use the following 3 tips to engage the client in a more positive exchange:

Tip #1 ? Highlight the Value of Your Service, Not the Cost

Clients are always interested in what you are bringing to the table. Unless you emphasize the value of your output, your client will always think that all you are bringing in is additional expense. And that?s not good.

Clients should see a freelancer?s rates as an investment, not an expense. Emphasize your expertise, the quality of work you can deliver, and how your work will improve their business.

At this point, it is also worth noting that you should believe in your own skills and capabilities. Only when you are confident about your work can you hold your ground squarely during negotiations like these.

When I was just starting out as a freelancer, I remember being asked by a client how much my rates would be. I let them know my rates, and, just as I expected, they offered me a much lower rate. I didn?t have the portfolio and the experience back then to let them know that I was competent.

What if you?re in a similar situation? What if you don?t have the track record to back up your claims?

If this is the case, you can offer an initial reduced price for the first week of work, or for your first output ? but make sure you get something else in return. You can request for public credit for your work, a testimonial, or 3 referrals in exchange for the reduced price.

Also, since we?re talking about reduced rates?

Tip #2 ? When Lowering Rates, Do It For a Limited Time

When you find yourself forced to lower your rates ? whether because of your lack of experience, you need extra cash quickly, or for any other reason ? it?s best to give your potential clients a deadline. Let them know that you?re open to working for a reduced rate for a short period, but, after 3 months (or any other time period), you two will renegotiate.

Attaching an expiry date to lower rate offers protects both you and your client. Because the client is aware of the limited time, reverting back to your regular rate after the trial period will not catch them off-guard. They can adjust their budget accordingly. Also, this deadline prevents clients from exploiting vulnerable freelancers at the same cheap rates for a long time.

Tip #3 ? Treat Clients as Peers

One mistake that many freelancers make is that they treat clients as their ?bosses?, and they treat negotiations like job interviews ? where they just answer questions and play by the boss? rules.

But, as a freelancer, you are essentially a consultant. Both you and your client are businesspeople. This means that you negotiations aren?t just about price ? you?re also trying to see if you?re a good fit for each other.

Once your mindset shifts from ?hand-for-hire? to ?consultant?, you?ll approach your negotiations more confidently.

What if these 3 things don?t work?

Well, then the answer is simple: you and the client are not meant for each other. It?s one thing to have flexible pricing and engage in negotiation, but no freelancer should accept rates that are lower than what they are comfortable with just because they are afraid of losing clients.

As a freelancer selling your business, you should learn how to be comfortable negotiating with clients. Since money is involved, it takes a lot of courage and preparation to be straightforward about your rates. Given time and practice, you can definitely become a better negotiator.

What about you? How do you negotiate with clients?

Source: http://pandadesk.com/blog/2012/03/how-to-negotiate-with-clients/

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