This is the third 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 much 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.
5. Sell the decision maker on the value of the relationship. Relationships are made or destroyed in the months after the initial engagement. Cuts in prices are often recovered through reduced service levels, something that neither party wants. So, in order to serve clients after the sale in the manner that clients expect, fees need to be maintained at the levels which ensure consistent service levels.
6. Sell everything but price. If you are not the lowest price, be the best value; the most responsive; the most proactive communicators; the firm with the most influential network of contacts; the firm with the best client mix with the most relevant experience. The list is nearly endless of ways that you can differentiate your unique set of benefits and customize them to the needs of the prospect. Ask your prospect to agree not to take the lowest ‘price’ but to take the best ‘choice’. Ask, “If all the bids are within 10% to 15% of one another, would you consider dropping the lowest price and selecting who you think would be the best attorneys to work with, the best service, the best technologies and the best reputation for results?”
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.