Q & A Table of Contents
Which Answer Hurts More, 'Yes' or 'No'?
From: Anna, Moscow, Russia
Question: A consultant had just completed a ten-minute presentation on how he thought he could solve the client's distribution problem, for a fee 1000 US Dollars. The company president asked:"Is that fee negotiable?" The consultant knew if he answered "yes" he would be pushed downwards on the fee and if he answered "no" he might box himself into a corner on a price objection. What do you answer in his place?
Response: If the consultant assumes that a negotiable price is only negotiable downwards, then there is a risk if he simply answers "Yes". On the other hand, if the consultant responds to the client by saying, "Yes, the fee could be higher if you feel my services are worth more to you," he is making it clear that his mind is open but that he is not prepared to reduce the fee.
A more cautious approach could be to respond to the client's question by asking what he means by 'negotiable' and whether he is implying that the proposed solution to the distribution problem is not worth very much in terms of a fee.
If the consultant can say "The solution I will develop will save you $X in the first year and $Y each year thereafter," he may be able to demonstrate the proportionality of the consulting fee versus the short- and long-term cost savings.
Similarly, if the consultant asks "Would you be willing to share your savings with me by paying me a percentage of those savings -- with a guaranteed fee payment in advance?" he may also be creating the likelihood of a longer-term stream of earnings.
Think out of the box and you're likely to arrive at a better result.
Good luck,
Steve
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