This is the fifth in an eight part series on how to resist price concession requests. Each two new tips will be posted each weekday for eight days.
9. Use the client’s success to your advantage. Most large,
successful businesses have set price structures that are rarely altered. Study
the pricing philosophy of the prospect and adopt the philosophy in your
response. Often you’ll find that the company simply does not discount their
prices on average volume orders. And in most cases, the projections of work for
your firm will not be extraordinary large and, in this context, not warrant a
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.
10. Your firm negotiates dozens, if not hundreds, of Use
fairness to existing client engagements every year. Furthermore, the firm’s
top, longest-held client relationships typically have among the group a
population of clients which do not receive a discount. It’s unreasonable to
expect a law firm to extend discounts to all of its clients. Discounts to new
clients put firms in compromised positions when they have to defend that
discount to long standing clients. Your firm recognizes that the industry is
too small and client relationships are too important to run this risk. Put the
onus back on the prospect by asking them to explain how you can give them the
discount and continue to earn the respect of your top clients. Here’s how to
word it. “I assume your company values the integrity of its business partners
the way we do. Does pricing services below the rate given to loyal clients
constitute a level of integrity that would pass muster with your company?”
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.