Lomax: “In the Bible, you lose. We’re destined to lose, Dad.”
Milton: “Well, consider the source, son.”
The Devil’s Advocate
Any fool can ask for a shockingly high price and hope for the best. But if you are unsure about the pricing, the whole thing comes crashing down as soon as the client makes the slightest pushback.
So if the height of a price is the measure of your audacity, its durability is a measure of your confidence.
Since audacity can be substituted by high enough levels of panic or rage, it tends to be less of a problem to acquire when push comes to shove.
Confidence, as in conviction that the price you set is both fair to the client and adequately profitable to you however, is a different story.
The problem is that most of your information about any [price/value for client] ratios comes from clients. In other words, people who can perceive only a fraction of the value you provide AND have a conflict of interest to tell you when the price is a bargain. “Consider the source” barely covers it.
Better sources of price confidence include:
– Your unique selling points, and how much it would cost the client to use an alternative solution
– Data about benefits your past clients got from your work, backed by testimonials or case studies
– Practiced responses to common challenges
Price negotiations should feel like a contest, not like a gamble.