“Money is not a problem.”
In a negotiation in behalf of a client, I asked my client:
“Please give me the prices (at full) for these 2 programs your customer wants to buy. Money is not a problem. They have as a minimum 24K euros.”
The answer?
“Here. This is the price —but you can offer it for less.“
The “less” price?
16K
The fear of “losing” the opportunity made them leave money on the table. Despite having the extra approved budget.
Of course, now comes the ethical question:
“Isn’t this ripping your clients off, Rod?“
No.
- The price is at the standard level. Without discount. (Why offer one when they don’t ask for it? 🤷♂️)
- A bigger margin makes the business more profitable. Which means a longer time for the business to keep serving.
- The customer is happy to pay for it. The value of what they make with this is in the millions (literally).
- A bigger margin enables you to serve better on whatever might or might not happen.
- Having the price agreed, approved by the customer, enables you to think of “What could I do for this price, so they’re delighted?“
- Whenever they call you, you’ll be more than happy to answer and serve them.
- You’ll look for more clients like this one. They’re good-fit clients.
- You’re seen as THE expert. And experts charge more.
- The price is acceptable. Go and try again with others like them.
Here’s the thing
Seeing everything from a perspective of fear of losing will make you ignore the green flags and go to your default: Give it for a lower price.
You’ll leave money on the table.
You won’t serve your customers at your best. Because what they want (and you, too) is to be delighted.
And you’re delightful.
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