I’m still hanging around with the folks, so I’m scheduling this post in advance.
I had a chat with a writer friend earlier in the week. He was talking about his most recent client meeting and how he managed to stand firm on his rate to a client that was doing a little dancing around the price. The reason he was able to get what he quoted – he was holding all the cards.
He knew the client had tried other writers and that it hadn’t worked out because none of them had the experience necessary for the project. He knew the client management would push back on price. He knew his response when they did – I’m worth it.
I love his response. He said he felt empowered by the fact that the client’s team mentioned the troubles with former writers who didn’t have his level of experience. He knew that in order to take on a project where others have failed is indeed risky (did they fail because of lack of experience or because the client is difficult to please?). So he charged accordingly. Even better – he was able to tell them the price included a protection fee for him should he miscalculate the size and scope of the project. They didn’t like it, but in the end he was able to tell them with confidence that they’re getting quality and experience for that price. They agreed.
I’d wager that you’re also in a position many times to negotiate a rate that underscores your value. When you have that specialty or are familiar with topics or similar projects, you can charge more for those skills because those are not easy skills to come by. If you write press releases constantly, you can charge for knowing how to put those together effectively.
Here are some suggestions for your next client negotiation:
Know your value. I can’t stress this enough – your specific skills have value to people who need them. If you’re a pro at putting together case studies, your clients who need those written should expect your rate to be higher than a writer who doesn’t do that very often.
Keep true to you. I’ve turned down any number of clients who would have paid me lower rates because I know I’m worth more. I can help them get something done, but if they want me to handle the whole thing, they have to compensate me for my time. All of it.
Know what they’ve tried before. If you’re going in to resurrect their failing project or you’re replacing a substandard contractor, that’s all information you can use to push for your rate. And you should. You don’t know what kind of mess you may have to unravel, nor how much difficulty it will be to get their project up and running again.
Know your BATNA. I’ve used this term before. It’s your Best Alternative to Negotiating an Agreement. If you know you can walk away, that’s your BATNA. If you know you want to make this work, figure out your absolute bottom line and stick to it. If your counteroffers and theirs aren’t even close, use your BATNA. Know before you start negotiating what your alternative is. It helps you stick to your price and your negotiations.
Have you ever had a negotiation in which you held all the cards? When was the last time you negotiated from a more valuable perspective? Do you often know your full value when negotiating price?
Unfortunately, when it comes to magazine/periodical feature writing, there's not much room for negotiation. The publications state their rates and terms and if you don't like them you're free to walk away. I am getting better at prompting late-payers into paying (and calling them on it when they try to short change me).
That said, the other day another writer friend of mine called. A client she's worked with wanted her to rework and expand something she'd already written for them so they could use it in a new way. Since she'd already done a lot of the work, she asked me if she should charge her normal rate of cut them a break since she's already done so much of the work. I told her to ask her normal rate – if they balked, she could offer the lower rate. They didn't flinch at her price. I'd take that as a sign that it's time to raise rates.
Hey Lori-
Totally unrelated to your post, but I want your readers to know I've nominated you for the top ten writer's blogs from write to done. http://writetodone.com/2011/11/22/nominate-your-favorite-writing-blog-6th-annual-top-10-blogs-for-writers-contest/
Now, someone needs to second that nomination. You give so much great information and I believe you should be recognized for it. Visit write to done and nominate Lori right now!
I second Wade's nomination.
As to the issues you raise about nomination Lori,I have walked away from negotiations when the fee I'm quoting and what the client is offering are not compatible. But that has mostly been when dealing with low-ballers. The lesson for me is to take it to a higher level. Sometimes I'm shocked when I negotiate with some clients – I'd tell them what I'm asking for a few say yes without even blinking. Which later makes me wonder if I could have negotiated for more/held a stronger negotiating position than I knew.
Wow, this is a very timely post, Lori. Yesterday evening a writer from an email group sent an email asking how many writers were being forced to lower their rates because of the economy. I was surprised at how many writers responded that they had. Only one respondent stated that she had actually increased her rates.
It never occurred to me to lower my rates when the economy started struggling. I can't afford to, and I've spent too much time and money working to improve my skills to take backward steps now.
I found that I had to re-evaluate my business and the market I was targeting and make a few changes there, which has worked in my favor. As an entrepreneur, I do know that I need to work on my negotiating skills – they could be better. I'm doing okay, though. 🙂
Part of the confidence to stick to your guns on your pricing comes from having a strong enough flow of new business and referrals, so that you can afford to be selective. Structuring your business so that you have a predictable flow of leads is the key.
Wade, what a nice thing! Thank you for that. Totally unexpected, and I appreciate that you like it here. That's award enough for me.
Thank you as well, Damaria. 🙂 I'm with you – if the offer is leagues apart, I'm walking away, too. Funny what you said about the ones who take your price without balking. Maybe it's more that they realize you're worth it than they think you're at bargain rates. If you're happy with your rate and they are too, that's a win!
My rates went up for new clients too, Kim. Lowering rates is kind of counter-intuitive. It doesn't say to me that person is a professional, but rather a dabbler.
Great point, Carl! I agree completely. If you've done your marketing consistently, you won't need to waffle on your rate.
Unfortunately, gender often still plays a bigger part in negotiations than it should.
Men tend to get their rates with less negotiation than women. Many women allow themselves to be pushed into lower rates. Many clients will push back once if a man states a rate, but, if he sticks to it, then agrees, but keep pushing a woman.
I've sat in meetings with male colleagues and experience this on numerous occasions. Or, if I'm working with a male graphic designer, his rate is accepted immediately. I always have to draw boundaries and usually get told I need to be "more flexible" or more of a "team player." When I'm working with a female graphic designer, we're often both harrangued to give lower rates in ways male colleagues rarely are.
And no, we don't give in.
I have to say, though, there's less of that up here than in NY. Less Wall Street/Master of the Universe mentality.
I've lost jobs to male colleagues who charged the same rate I did, even with fewer credits. I was told I was too expensive; the male writer was not. I've also lost jobs to male colleagues with less experience who then didn't deliver (which has nothing to do with gender, simply the individual writer), and then the client came back asking for me. And I charged a higher fee than my earlier quote.
Rescued you from spam again, Paula. Great point – ask what you're worth. If they balk, then you can decide if it's worth it to you to discount. Don't do it up front!