The Importance of Giving the Best Price to Clients
As part of my job, I have been in consistent negotiation process with some of the clients. Somehow I do not like it, because sometime it really can “wreck” friendship that I built over the years with some clients. I want to have more friends not enemies and life is just too short for the endless argument about pricing.
In the past few years, I am trying to give all my clients the best price or fair in the first proposal that I submitted to them. To me this serve some purposes very well
- This will cut down the negotiation process and we can focus our time, energy and money for something else that more useful for both party.
- If I lost the business, I will not regret it because I know that if I take the business, it will do more harm to me or company, unless if we are in the survival mode.
- If I do not give them best price, it means that I am not doing my job as their account handlers.
Similar analogy: you may prefer to buy in the modern trade, you do not bargain, just take the product according to your need and pay. But there are downside to it:
- At the first, you will be seen as a person who are very hard to deal with, it will lead to a perception that you are snob or arrogant. Yap.. been there few times..
- When the clients have what so called “purchasing department” the best price strategy as above may give you headache because their KPI is to lower down the cost, and I tell you they are very-very tough.
It took quite a while to your client to understand that you are in a good will to give them the best price. In my case I need around 4-5 years for some giant local clients.
I usually politely ask them to compare it Apple to Apple to the competitors . When the pricing is no longer an issue and client believe that we give them a good price already, we can have fun to work with them and have a closer client servicing relationship.
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I have principle for my own business, “the more you give the more you get”. It means I don’t want my customer get “junk” just because I give them less prices. It’s better to sell good quality of goods even I have to tag a little bit higher prices.
Thank you for sharing good information. I am still looking for
design for my own social blogsite .Good Luck from Germany .
Inspiring article! Totally agree with this.You are doing great and i am sure you will be a successful person in the world.Actually i liked this tactics “I usually politely ask them to compare it Apple to Apple to the competitors . When the pricing is no longer an issue and client believe that we give them a good price already, we can have fun to work with them and have a closer client servicing relationship”.Worth to read your blog and appreciate it.Lots of thanks for sharing.
In my own experience in selling CRM software to companies (B2B selling), I always try to overcome price objections with these 3 tips:
1. Risk
If they prefer buying cheap product, it’s likely more risk they’ll face in the future (product malfunctions, poor quality, etc)
2. After sales
It’s a fact that unreasonable cheap price won’t give enough cash flow to support the after sales division.
3. Hidden cost
I used to scare my clients that cheap product usually contains some hidden cost, that in overall is more costly.
You will give cheap price with best service to the client If you want to stay in market for long time.
cheap price does not go with best service
the way I see it, everything is bound by relativity theory, some clients prefer modern trade while others still believe in wet market.
You have full right to say it. Actually the right price should be the fair price for both sides of the negotiation. Congratulations for the blog.
I prefer offering at reasonable price but higher standard of service. It delivers more, you get great reputation, and you enjoy more money.
giving best rate to client play very important role because if you best price (reasonable rate) client be yours for ever.
Giving best price to clients should be entailed with a quality product you are about to sell. And it is good to know that you pointed out ideas that are vital in doing a business.
Giving the best price to client doesn’t end there if you want your clients to keep coming back, be sure that the product you’re selling is with good quality.
Give your client the chance to bargain and see if you could close the deal with everyone agreed upon.
It’s definitely a good idea to give the best price possible to your clients. Especially if you’re producing high quality work that goes above and beyond in terms of their expectations. This way, you’re sure to get many returning clients.
Best price from us does not means lowest price to the market and does not always mean low margin.
If we have good quality and premium product then price it as premium. But we know that we can not lower than that.
Keep the price negotiation to a minimum… but it just me, some enjoying the negotiation process too much…
You are right but sometimes offering the best (in other words lowest) price possible makes them think of your business as a second class firm. they go like “oh their prices are so low as compared to others, they must be compromising on the quality of work”