by Daria Steigman on July 7, 2011
Assessing value can be one of the toughest challenges facing any business. Bring small business folks together for a conversation, and the topics of rates and handling negotiations routinely come up. Pricing is often in the eye of the buyer—budget, need, demand, and perceived value all come into play. And that’s before you, your credentials, and your “value-add” even walk in the door.
My latest Independent Thinking column is out, and it explores rates, scope, referrals, and the importance of choosing wisely:
For any business, the perception that you are for sale can be deadly. After endless holiday sales, retailers have trained us to wait for the “real” (discount) price to kick in. Is this the message you want to send to your clients and prospects?
While I’ve talked about some of this before, the column goes into a little more depth–including some good food for thought from Kristie Aylett and others on the topic of referrals. Read the column here.
Photo by antwerpenR (Flickr).
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Tagged as:
branding,
Business,
Ethics,
Independent Thinking,
Kristie Aylett,
Negotiations,
referrals,
Scope of Work
by Daria Steigman on October 7, 2009
A double-decker second look covers two weeks of top posts, surveys, and other news that I have read and/or tweeted about that you may not have seen. As the name implies, I think they deserve a second look:
- Netflix, Innovation, and ROI: The second place team in the Netflix $1 million contest lost the money, but their search for a better predictive model yielded huge insights. Great article looks at why companies spent millions on the Netflix contest and the innovation payoff.
- Social Media Side Trips: Paul Chaney, author of The Digital Handshake, talks with Toby Bloomberg about social media. A sample: If social media is a road trip, then “the ‘side trips’ have to do with the people we meet and the relationships we forge along the way.”
- Business Loans, Personal Collateral: Should you use personal assets as collateral for a business loan? While it might be unavoidable, you need to negotiate carefully, borrow only what’s essential, and recognize the risks. Open Forum article looks at how to manage those risks. Shout out to Gini Dietrich for alerting me to this one.
- Mobile trends: Rather than another post about apps and geo-location, the Economist takes an in-depth look at how mobile technology is changing the rules in the developing world. Key trends: availability, Chinese telecom companies, and the rise of mobile services.
- Negotiating Tips: Three keys to good negotiations–empathy, win-win, and it’s not about contracts–by Palo Alto software founder Tim Berry.
Have you signed up to receive the Independent Thinking newsletter? Now’s the time! Once a month I’ll send you exclusive, subscriber-only content highlighting interesting articles I’ve found, as well as tips on marketing, social media, and how to grow your business. Sign up today!
Tagged as:
Business,
Gini Dietrich,
Innovation,
mobile,
Negotiations,
Netflix,
Paul Chaney,
Social Media,
The Economist,
Tim Berry,
Toby Bloomberg
by Daria Steigman on September 8, 2009
Do you negotiate over rates? If so, then you may be selling your business in the bargain basement bin.
Every now and then I’m queried about my rates only to have a prospect come back and try to get me to drop then. The irony is that (a) it’s always a small project; and (b) the amount they want me to drop down is very small. My answer: No.
And guess what? They almost always meet my rate. If they walk away, that’s okay too, because my rates aren’t arbitrary, and they’re not for sale.
While I will not negotiate over rates, I will, of course, negotiate over the scope of work. This is an effective way to provide value to a client while both meeting their budget parameters and getting paid what you’re worth.
Pricing is always a huge issue–and there is always flexibility on how to structure a proposal. But if your rate isn’t really your rate, then why quote it in the first place?
Photo by calaggie (Flickr).
Have you signed up to receive the Independent Thinking newsletter? Now’s the time! Once a month I’ll send you exclusive, subscriber-only content highlighting interesting articles I’ve found, as well as tips on marketing, social media, and how to grow your business. Sign up today!
Tagged as:
Business,
Negotiations,
Scope of Work
