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Pricing & Negotiating Skills
Make More Money - Have More Fun! Part I
By Maria Piscopo

THE FIRST QUESTION

The first step to getting paid what you're worth is to quote a price both you and the client can live with - and profit by! This process begins when a prospective client or customer asks the first question, "What do you charge?" To start with, they are asking the wrong question and this must be stopped and corrected. There are two options when clients ask for creative services costs. One, they want to really know, "What does it cost to do my job?" In this case, you go on to get a complete job description and give them a cost. Two, they don't have a job at the moment, but would like to know what it would cost to work with you when they do have one! In today's new economy of buying creative services, this is a more frequently asked question. It is also very difficult to answer. How do you quote a job when you don't know what the job is? As it turns out, all the client is really asking for is some way to measure you against other creative professionals. The best bet is to prepare some simple measuring devices to give out when the client wants price, but doesn't have an immediate job.

Measuring devices include price ranges, asking them to describe a typical job, pricing something out of your portfolio - anything to give them some information!

JOB DESCRIPTION

When the client has an immediate job request, it is very important to get a complete description of what they need before you present your cost proposal. Ask some variation on these five questions:

1. What do they specifically need? Describe the number of comps or views, be sure to include variations! Get exact production requirements (or as close as possible for an accurate price).
2. When do they need it delivered? Don't forget to include any possible rush charges for a faster than normal delivery.
3. Who will see it and what will they do with it? Great question when your client isn't familiar with copyright and usage pricing. This question will determine whether your creative services will be used as a simple booth graphic or a national advertising campaign!
4. What is the budget? What were they planning to spend on the creative services? Clients won't always tell you, but at least they know that you are concerned. You'll get the information in a later contact with them, so don't worry if they can't answer.
5. Who else is giving them a cost proposal? This question often answers the "budget" question! Again, your client may not want to give you the information, but at least you'll know whether the job is being put out for other bids.

THE VERBAL ESTIMATE

Plan on calling the client back with the cost when you don't know them well or don't know if you have the job. Don't quote prices off the top of your head! Always ask for the time to call them back. This will give you the time to do an accurate cost estimate and show your client the respect their request deserves. When you call them using the below "script", you will get some feedback on that mysterious budget figure they didn't tell you about. This feedback will help determine exactly how much work you have to put into the written cost proposal. You should prepare your verbal estimate presentation in advance so that you can handle any response. Here's a typical script to use, "From what you described, it will cost $5,000.00, how does that fit your budget?" The client's response will tell you where you are! Then, if you have to, you can negotiate until you and your client agree the price is right.

CONSIDERATIONS TO NEGOTIATE

NEVER drop your price for a specified job description without some consideration in your favor or change in the client's job description. Not only is it unprofessional, but it causes doubt in your client of the value of your work and you'll never get paid what you're really worth! In addition, you'll probably lose money (if not self-esteem) on the job and that client will try to get every other professional to drop their price without a reason. You can ALWAYS WALK AWAY if you are not willing to negotiate or the client simply can't come close in their budget to what it really costs to do the work. Try this one simple negotiation: When the client needs to pay less than what you just told them, THEY WILL GET LESS OF SOMETHING OR YOU WILL GET MORE OF SOMETHING.

Your challenge is to go to your next negotiation with the two lists. One, what can they get less of? Two, what can you get more of? For example, for a lower price consideration, the client agrees to get less work or fewer variations. If the job specs can't be changed, then the only way to lower the price is to offer you better payments terms or several hundred printed samples. THESE ARE ONLY A COUPLE OF IDEAS. Your job now is to go and make up your two lists of different considerations you or the client can negotiate. Don't work for nothing and don't drop your price for nothing. With this simple technique, you don't have to!

(Next column: How To Write Job-Getting Cost Proposals)