Q & A Table of Contents
Using Picasso to Justify My Fee
From: David, Australia
Question: I'm having trouble with how recruitment consultants overcome the fee objection....'You're too expensive compared to the competition', and how not to defend the position in a way that infuriates the client.
Response: I know this may come as a shock to you, but recruitment consultants are not the only people who are faced with objections to their fees. When one delivers high quality service or products, the long-term benefits to a customer or client may well justify a higher fee. Unfortunately many businesses focus on the short term and look only at the immediate bottom line.
There's an interesting story to illustrate value:
Many years ago a woman was in a restaurant in Paris when she noticed that Pablo Picasso was sitting at a nearby table. She was extremely excited and finally got up her courage to walk over to the great artist with a pen and piece of paper in hand.
"Oh, Monsieur Picasso, I have admired your work all my life. Is there any way you might be willing to make some kind of mark on this paper?"
Picasso took the pen and quickly scribbled something on the scrap of paper.
The woman asked, "Oh, thank you so much. What can I do in return, how can I thank you?"
Picasso said, "That will be $75,000."
The woman was dumfounded. "But that little scribble only took you a second to do. How can it possibly be worth $75,000?"
Picasso had a very simple reply: "That 'scribble' may have taken a second. But it took me 60 years to get to this point."
David, when you are negotiating with clients, it may make sense to remind them that 'the price is what you pay; the value is what you receive.'
In dealing with customers who raise issues of fee comparisons, it is
important that you listen to them, find out what interests they take
seriously. If they are looking for a person with a particular range of
competencies, if they are facing a particular deadline, if their need is to meet long- as well as short-term requirements, you can respond to that information with an explanation of your price proposal that helps your customers understand that your efforts in their behalf are aimed at delivering their objectives. You are not defending the fee, you are
selling the service and its benefits.
Good luck with your negotiating.
Steve
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