It is tough to negotiate. When a person tells you her service is worth $20 then it is heart wrenching to tell them to do the same at $10.
And if you imagine yourself at that person’s position – it is even harder. How would you feel when you are being asked to sell your services for half the price you asked for…
Of course, negotiation is hard on both sides of the transaction. But should you do the negotiation when you know it ain’t a good feeling when it is being done to you.
Or you shouldn’t let others negotiate with you. But expect them to be open to bargain. Is it cool being a hypocrite?
Let’s dive in the mindset, reasons and necessity on the negotiation.
The Average Price
Whenever you go on shopping for anything which doesn’t have a fixed price – you tend to look for the average price. You ask bunch of your friends and average the prices. Then you arrive at a price at which you will try to get the product. And if you get it below that price, you feel accomplished.
But in these process, you miss on the other cues – the customer experience, quality of service or product and the long-term relationship building.
If all your questions revolve around how much you can save at this present moment- then you will get the cheapest of the service available. But it will be as the name is – cheap. Hence, low quality and no focus on the relationship.
Neither of you exist for the mutual benefit. Instead you are looking to cut throat of each other. And that leads to sub-par service and low quality experience. In the end you get the only bargain you asked for – the cheapest price.
Why You Should Negotiate
Because there is no drawback. Suppose you find a person who is selling their services which you find good enough. Ask for a price cut. It isn’t to make that person feel bad or trying to rip her.
It is small open-ended question which helps you see whether that person is naming any price or asking for what’s worth. If that person is willing to reduce the price without any reduction in services then her service prices were inflated. Now you can ask for a better deal. And not get trapped on some inflated price options.
And after this experience is over, you can find a better freelancer. Who knows their worth. And doesn’t inflate the price unreasonably.
How To Deal With Negotiation
On the flip side, if you are the freelancer who is dealing with negotiation question – embrace it. Because it gives you the opportunity to defend your service for the price tag. Show the client how you can deliver on the promised deals and the worth behind the price.
If you are struggling to do this then you should either cut down the price or work on your skills to justify the price. Either way, it helps you grow as a freelancer and make your stand stronger in the long run.
Negotiation isn’t a bad tool. On either side of the deal, it helps to clear things because as a client you should get a best deal. And as a freelancer you should price as per the value you are delivering.
Pro tip: It is okay to not get clients who want you to cut the price tag and get the same service. Because if your skills are of top-notch – then you can chase top – notch clients who will happily pay for the best service out there. Make sure that you are one of the best freelancer in your niche.
What Is A Value?
It is tough to determine the price for your services. An easy method is to see the market – what your competitions are charging. And charge on the similar lines.
Or you can survey the people – and find how much they are willing to spend. And find a happy medium where many people can buy your services or product. Either way, it is not the best way to put a value number.
Whatever the product or service you are offering – if you are sure it brings in the desired output. Then you charge even twice what your competitor is charging. As long as you are confident of the value it brings to the customers. And you can use that money to do more research, improve the product and add seamless customer service experience.
The price is not of significant concern when the value delivered is of the highest quality. So remember to justify the price at least to yourself, your team and the sample test audience before your declare the prices to the world.
When you were a kid and you went to the candy shop to buy chocolates – you were ripped. Because you were a kid and you don’t know the value of money. Or how much chocolates are worth for the money you gave.
The promises made by the fitness shortcut belts – didn’t pan out. And you feel cheated.
Over the course of your lifespan, you feel everyone is trying to extort money from you and give you nothing. And it is expected that you have a doubtful perspective.
But you are now a grown person who has the whole world at their disposal. You can check out the sample before committing to buy the whole lot. You can discuss, compare and test the results from different sources. Either way, as long as you commit to give your best, you can find a product or service worth your time. And once you find that holy grail – buy without guilt.
Because that service or product has the potential to give you the thing which you desired for – promises fulfilled. So next time, you feel scared, remember everything is just a research away. And testimonials are in abundance. Just give your best to the best product – and you will get your money’s value 10 times over.