Written by: Vickie Sullivan  |  April 13, 2023

When Buyers Want Lower Fees: Find Middle Ground

With threats of recession lingering and companies’ revenues down, buyers are extra cautious with their budgets. They don’t want to pay high fees. At the same time, however, they have big needs.

They want your help, but don’t want to pay too much for it. But if your revenues look slim, too, what should you do? Do you turn them down or accept lower fees?

The challenge: If you reduce your fee by too much, you’ll cannibalize your premium offerings. If you keep the fee high, the client will forever think you are too expensive.

It’s easy to turn down low-paying work when times are good. But after a global pandemic and now recession fears, you must find a middle ground.

Here’s what I tell clients all the time: Expand your options.

Examples:

• Consultants can lower their fees if they trim the scope of the project. Break the project into two lower-cost phases, for example.
• Speakers can refer lesser-known peers to low-fee speaking invitations and take a commission.
• Coaches can do group or online support and fewer one-on-one sessions.

Listen: When to Walk Away from Low-Ball Offers 

The key to being in this middle ground: Keep a foot in the door and be a resource.

So, ask yourself, “What alternatives can I have ready now for those ‘budget blues’ inquiries?” If you can offer immediate options, you will come out ahead during these fearful times.

Now Read This:

• How to Meet Your Buyers’ Needs During Turbulent Times
• Strategic Sounding Boards Give Real-World Advice for When the Rubber Meets the Road