Responding to our May 30, 2007 posting, Lessons from Maurie: Fee Negotiation, Glenn Mickle, an accountant and consultant based in Australia, has sent some helpful suggestions for negotiating fees. Here they are. Thank you, Glenn:

I have recently started with a regional accountancy/business advisory firm in NewSouth Wales, Australia as their marketing manager after a previously successful career in wedding and portrait photography. I see many parallels. Very busy staff coupled with downward pressure on fees from a competitive market.

In my previous career the first question was often “How much does it cost to have a family portrait taken?” My response “Far and away the cheapest way to do it is to take it yourself.” Then I would be quiet. The next question was usually “Well actually we’d like you to take it because we’ve seen what you can do.” This is OK once you have established a reputation for good work. Much like Maurie’s “Let me help you find someone cheaper” story, there is always someone cheaper. I would also sometimes hear ‘The guy down the road does free sittings.” My response: “Well he’d have a better idea than I would as to what his skills are worth.”

The question of ‘How much?’ is often a way for the client to appear in charge of the situation and for them to appear knowledgeable on the subject. If we find other ways for them to show their knowledge (for example, asking them what their preferences or priorities are and what they’d like to get out of this transaction) they forget about the price and start to focus on the value they are after.

I’m reminded of another hint given to me some years ago which I think fits nicely into your discussion. Here’s what to do when asked one those prickly questions like “Why does it cost $XXX?” Instead of getting on our soapbox and rattling off the many virtues of our products, skills and services blah, blah, blah, our response should be along the lines of “Why do you ask?” Then we find the real reason for the question, which might be “Well last year it was more expensive and I wondered why it was so cheap!”

Cheers to you and yours Ford, and have a Merry Christmas from us down under.

This entry was posted on Friday, January 4th, 2008 at 9:15 am and is filed under Fees, Rain making. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.