When you meet a client to negotiate fees, you hold most of the power in your hands. Offering your client a low fee might land you the job but not cover your overhead costs, while requesting a higher fee may make the client look elsewhere. Creating your own negotiating strategy before you get together with a client can help you determine a fee schedule that everyone can use.
Negotiating is tricky because you must walk a fine line between getting what you want and giving your clients what they want. Lori Turner-Wilson recommends that you sit down by yourself and make a list of things your client might say and how your client will feel about your upcoming meeting. You should think about what questions or comments the other person might bring to the table and determine how to respond to those comments. For example, if the client says your accounting fees are too high, you can explain what your client will get from you that won't be obtainable from another accountant.
The key to creating a negotiating strategy involves getting what you want. If you look at your overhead costs and decide that you can't take the job for less than X amount, prepare yourself to walk away from the table. Negotiating often involves both parties setting a value and working together to find a price that makes you both happy. Depending on the situation, a potential client might not have the funds needed to work with your company. If haggling over your accounting fees leaves you feeling weary or worn down, know that you can always withdraw and find other clients.
When building a negotiating strategy, you need to realize that there are only three potential outcomes: win/win, lose/win or win/lose. If your client doesn't seem happy with your fees and keeps turning your suggestions down, ask the client to give you a number. You can either decide to work for that figure, suggest a slightly higher fee, or realize that the client will never give you a reasonable amount. You can ease the process by going into the meeting with a range of figures. You might tell the client that you can work for an amount between A and C, which shows that person that you have a negotiating strategy in mind. It's then up to the client to decide whether to make an offer within that range.
The negotiating strategy that you use when talking about your fees is similar to the strategy you use when applying for a new job. You know what your time and skills are worth, and you need to show your clients how you can use those skills to help them. While using a negotiating strategy can help you land new clients, you should keep in mind that you can always move on if you can't reach an agreement that is favorable to both of you.
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