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).

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!

©2012 Independent Thinking. All Rights Reserved.

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!

©2012 Independent Thinking. All Rights Reserved.