Thursday, March 14, 2013

16 Ways to Avoid a Haircut, Post 2

This is the second in an eight part series on how to resist price concession requests. Each two new tips will be posted each weekday for eight days.

Studies show that 74% of price cuts are started by sales people, not customers. In legal services, that percentage may be a lot higher! Lawyers agree to discounts on their hourly rates, often without a hint of a prospect’s objection to the hourly rate. Here are some proven strategies for resisting discounts and increasing profits.
3. Use testimonials. The experience of peers is a powerful endorsement of value. Before succumbing to rate cuts, share the testimonials of similar companies you have worked with to demonstrate the value of your services. You can delay a rate negotiation, often to your benefit, by asking the prospect to speak to past and current clients prior to continuing the discussion on rates. Loyal clients will validate your services and provide further ammunition to resist price cuts. Peer companies held in high esteem by the prospect have the greatest testimonial influence. But choose you references carefully and prepare them in advance.

4. Sell your competitive advantage, not your rates. What sets you apart from your competition? Do you have a unique set of skills or experience? Unique technologies? Particular ‘clout’ or access to persons of influence? Use these differentiators to reinforce the value of your services. Ask prospects questions which highlight the value of these attributes to ensure the full value you provide clients is factored into the analysis.

It goes without saying, if you would like to talk about training your lawyers in resisting pricing concessions, please give me a call. It costs nothing to talk.

1 comment:

  1. Extremely useful information which you have shared here about UPS Contract Negotiation for us .This is a great way to enhance knowledge for us, and also beneficial for us. Thank you for sharing an article like this.