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I'll put my 2 cents over here;
In these situations, what you could do is propose a long term plan.
'Well, Mr. Potential client, I really understand what you mean and I'm quite interested in that potential partnership, this could be great for both of us' (That is what they want to ear, so now you have the attention to your speech!)
The way I see this is: We do not know each other right now, so you will understand it is hard for me to allow you a discount up front. What I can propose you (see here that I do not use the word 'but', really important') is a long term volume discount. You mentioned that a potential volume could come out of this relationship..'
After this you go with a system that could be beneficial for you
Mr Potential client, my hour rate is ???, but after that many contracts with you, I will drop the rate (20%,30%,) so on the long term, blabla..
Why go this way:
This person wants a discount, as a person that negotiates you (and win) feels empowered. They want to be right and win the deal as much as they want to save the money. What you are proposing (long term discount) gives them a deal. Not the deal they wanted up front. You need to make that deal look even bigger, more attractive to them, than an initial deal, make them dream that they won it over sooo bad.
For you: You are in control.. If the job comes in, the first ones wil be how you planned them, at your projet (or hourly) rate. You decided! If ever this brings lots of work and you have to go pass 'the deal' threshold, well you made several full price projects with them up front, so you 'made your money' with them already..
Also, as they'll start to get a discount let's say after the 10th project, they will be less temptation to 'look elswhere' after the 7th project.
Point cards work this way, and it works (not for everybody, but you will get that free coffee after your fidelity card is full, so why go to another coffee shop)
This worked for me in the past.. When I started, I even had an architect paying up front for my 3dsMax license, like 4500$, as in return, I was giving him a 5000$ discount equally spitted on the next 10 projects.
I was a huge winner, as I was able to use my license on other projects as well, and overall, I was giving him a 500$ discount on a year span, so I was still able to make groceries. Also, he never even taught about looking for somebody else.. projects would come in..
For other clients, I proposed a discount after that many projects, and the amount of projects never came.. so the 2 or 3 contracts were full rate, I didn't lose. 2 or 3 contracts that I would not have made if I did not listen to their deal making idea up front.
So, my suggestion:
It will only take you a few minutes to listen to them, and do not discard that potential work. It is probably not the perfect client, but a buck is a buck.
If you can make them feel they won, and this is your conditions, well you won.
If it does not worth the talk and after a few minutes you see that your proposition is a no go, well you only lost a few minutes.
If your pipeline is full and you don't need other clients, well you just read my post for nothing
If your pipe is full and clients are coming in on your terms all the time, then do not even start to talk discounts.
Hope all of this makes sense
In these situations, what you could do is propose a long term plan.
'Well, Mr. Potential client, I really understand what you mean and I'm quite interested in that potential partnership, this could be great for both of us' (That is what they want to ear, so now you have the attention to your speech!)
The way I see this is: We do not know each other right now, so you will understand it is hard for me to allow you a discount up front. What I can propose you (see here that I do not use the word 'but', really important') is a long term volume discount. You mentioned that a potential volume could come out of this relationship..'
After this you go with a system that could be beneficial for you
Mr Potential client, my hour rate is ???, but after that many contracts with you, I will drop the rate (20%,30%,) so on the long term, blabla..
Why go this way:
This person wants a discount, as a person that negotiates you (and win) feels empowered. They want to be right and win the deal as much as they want to save the money. What you are proposing (long term discount) gives them a deal. Not the deal they wanted up front. You need to make that deal look even bigger, more attractive to them, than an initial deal, make them dream that they won it over sooo bad.
For you: You are in control.. If the job comes in, the first ones wil be how you planned them, at your projet (or hourly) rate. You decided! If ever this brings lots of work and you have to go pass 'the deal' threshold, well you made several full price projects with them up front, so you 'made your money' with them already..
Also, as they'll start to get a discount let's say after the 10th project, they will be less temptation to 'look elswhere' after the 7th project.
Point cards work this way, and it works (not for everybody, but you will get that free coffee after your fidelity card is full, so why go to another coffee shop)
This worked for me in the past.. When I started, I even had an architect paying up front for my 3dsMax license, like 4500$, as in return, I was giving him a 5000$ discount equally spitted on the next 10 projects.
I was a huge winner, as I was able to use my license on other projects as well, and overall, I was giving him a 500$ discount on a year span, so I was still able to make groceries. Also, he never even taught about looking for somebody else.. projects would come in..
For other clients, I proposed a discount after that many projects, and the amount of projects never came.. so the 2 or 3 contracts were full rate, I didn't lose. 2 or 3 contracts that I would not have made if I did not listen to their deal making idea up front.
So, my suggestion:
It will only take you a few minutes to listen to them, and do not discard that potential work. It is probably not the perfect client, but a buck is a buck.
If you can make them feel they won, and this is your conditions, well you won.
If it does not worth the talk and after a few minutes you see that your proposition is a no go, well you only lost a few minutes.
If your pipeline is full and you don't need other clients, well you just read my post for nothing
If your pipe is full and clients are coming in on your terms all the time, then do not even start to talk discounts.
Hope all of this makes sense
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