Should You Discount?

It's likely, given today's economic climate, that at least one client may ask for a discount on services. How should you respond without devaluing your agency's services? There is a great article, written by author Andrew Sobel, that provides reasons a client may request lower fees. By understanding the reasoning behind the request, Sobel believes you can better determine whether to grant or deny the discount. The following are excerpts of each client type behind these kind of requests. Read the entire article here for Sobel's full descriptions and advice on how to handle each situation.

  • "Red Ink": This client is under extraordinary budgetary pressure due to a decline in profits, and really is having trouble funding your work.
  • "Competition Czar": Your client has solicited proposals from a number of your competitors, and says you are more expensive for what appears to be the same service.
  • "Bargain Hunter": This client always likes to dig around for the best deal, irrespective of who you are, the service you offer, or the degree of competition.
  • "King Commodity": The client perceives your service to be a commodity or near-commodity, and buys mostly on price.
  • "Chicken Little": This client likes to fret about how expensive everything is, including you.
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