Once I enrolled in uni, I found out that punctuality was not a virtue despite what I was taught until high school. “Academic quarter” meant that everybody was expected to be about 15 minutes, and that was fine.
This was the only experience I can compare with seeing just how much price flexibility (the willingness to lower the price in the middle of a negotiation) can backfire in the context of a high-stakes professional service._
Over and over again, I’ve seen people talk themselves out of a fair profit or even out of a deal by trying to be reasonable or even just compassionate._
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The intentions were always good. However:
- Clients prioritize trust and reliability over cost when choosing professionals, resulting in inelastic demand i.e. a 15% price cut might only yield a 2% increase in clients.
- Volunteered discounts are often seen as price insecurity, and erode trust if the client can’t see a good reason for the discount. If you went to a dentist that quoted you $ 4000, and then in the same sentence offered to do it for $ 2600, wouldn’t you be suspicious?
- When you are really worried about something, you don’t to find a “reasonably priced” expert. You want the best expert that you can currently afford. Instead, collecting referrals and publishing advice are more efficient ways of acquiring new clients than allowing your price to dip at the last second of negotiations.