How to Deal with Hagglers on Pricing

Establishing (and revising) your pricing structure as a business owner can be an agonizing process. Chances are good you’re already not charging enough for your services, so when you find yourself up against a haggler, it’s hard not to feel a mix of annoyance and dread.

Haggling, which can be considered a less tasteful form of negotiation, makes you call into question your pricing and leaves you wondering if you should simply cave and take the lower rate because you want the work.

No. Don’t do that.

Instead, here are some strategies to try next time you’re up against a haggler.

Communicate Value First

You’ve already done your homework. You know your value and how you fit into the competitive landscape of your industry. Now you must be able to clearly articulate that value to a prospective client – and do so confidently. If you waver or hedge about what you offer, you’re already losing ground in the haggle war.

Encourage Questions (and Don’t Be Afraid to Ask Them Yourself)

Sometimes buyers see a bottom-line number and feel scared off before they even have a chance to digest all that goes into what makes up that final number.

If someone starts to haggle you on price, have a conversation where you can break down your estimate and address their specific questions and concerns. You can also try to glean some insight into where they’re coming from too. There’s no harm in asking them more about why they’re looking for a discount. It could be for a legitimate reason – not just that they’re trying to haggle you down for sport.

Know When (and What) to Discount

Negotiation comes with give and take, but it’s up to you to determine what you’re willing to give in return for their business.

If you’re negotiating with a prospective client and have had a few preliminary conversations, you may be willing to offer some palatable discount that works for both parties. Perhaps it’s a longer contract for a lower rate or a lower initial rate that will increase at a certain date. You still have a business to run and it’s important to ensure you’ll make a profit. Sometimes, regardless of how “good” the customer is, you might just have to walk away.

Negotiating on price, though never fun, is something most business owners will face. Equip yourself with a few strategies you can confidently implement so you don’t end up compromising so much on price that you end up losing money in the process.