I worked quite hard to add a client to my list.
We spoke several times by phone. I crafted and emailed a proposal. Patiently, I stayed in touch over five months, checking in, periodically.
Then, we set a meeting at which I outlined a streamlined proposal, a great fit for them.
And within a few days, I was told they want to begin, but the price for my services is "too high," according to the boss.
What in the world does this mean, too high?
(1) Does this mean they'd simply like to pay less, getting what they consider a better bargain?
(2) Does this mean they're willing to cut back the scope of the project, because right now, the cash flow they have can't support such a large endeavor, as proposed?
(3) Does this mean they have a credible comparison bid to which they can point, that meets my proposal jot for jot?
(4) Does this mean they have seen my price, and they just have a bias that tells them services of this type "should be" cheaper?
(5) Do they believe that they're so inept that they won't be able to capitalize on the value inherent in the program; ie that they're dummies, and they'll probably not get what others would get from such assistance?
(6) Do they think all proposals contain fluff, and they want to shake it out of mine?
(7) Do they believe they're hotshot negotiators, or foolish to accept the price of anything, exactly as proposed?
If you're a coach or a consultant, as I am, you face a challenge in pricing your services in light of their actual value with regard to the contribution they're going to make.
Let's say, you're going to help a client to earn an additional million dollars, net, after employing you. How much of that are you worth, in exchange? Ten, twenty, thirty percent?
There is no standard answer.
And the same principle applies to your compensation as an employee.
You're unique, so there may be others who will agree to labor for 80% of your expected rate of pay, but they may be 50% as efficient or effective as you are.
Remember this as you negotiate compensation. Your "worth" isn't a number that can be scientifically derived, so hold out for what you believe represents value, all around!