Bill and collect the fee you are worth

When times are tough, and we’re all feeling the pinch, it’s natural for business leaders to focus on winning or retaining business at any cost. Even long-term, valued customers may be looking to tighten their belts, leaving us feeling vulnerable. We become afraid of losing precious business that the moment a client pushes back, we are quick to offer concessions to maintain the relationship. While it may seem a prudent choice in the short term, in the mid-to-long term, this approach often harms more than it helps. By leaving money on the table now, not only are we short-changing ourselves now, but we’re establishing a precedent with our customers that is likely to leave us short-changed for some time to come. After all, if we make a concession now, we’re signalling our willingness to negotiate, and what begins as a “one-off” discount becomes a regular cycle of fee challenges that continues long after any financial squeeze has passed. Perhaps most importantly, by lowballing our own work, we devalue our own efforts, our expertise, and our time. As difficult as things may be for our clients, they’re difficult for us too. After everything we’ve invested in building our businesses, cultivating our relationships, and working to deliver a world-class experience consistently, we deserve to see the benefits of that via a fair fee for our work. For many organisations, it just seems simpler to make the concession. We want to appear reasonable and sympathetic to our customer’s situation, and we certainly don’t want to turn business away if we can avoid it. Negotiations can be difficult. Sometimes they can even feel hostile, particularly when our people aren’t equipped with the skills they need to excel in negotiation. However, when times are tough, we must be prepared to stand firm. We need to have confidence that what we bring to the table has value beyond a simple price; it’s in the time and money we save our clients and the value of years of experience that offers peace of mind. Our customers depend on us, and that has value. When we face fee challenges, we need to remind our customers of that value instead of devaluing ourselves by offering discounts. We also need to be aware of the language we use. Often, a lack of assertiveness when providing the fee invites a counteroffer. A simple slip of the tongue such as, ‘We were thinking of a fee in the region of…’ is all it takes for a client to offer their own thoughts on what the fee should be. Where it simply isn’t possible for the client to meet our price, we need to communicate to them that the only way we can go lower is to offer a different package or change the scope of the project. Every time we take on a full-scope project for less, that’s also time and resources that we cannot offer to another customer. Unfortunately, sometimes our customers are not willing to meet our fees, and they’re not willing to compromise on service levels to pay less. When that happens, it’s often best to diplomatically suggest that we’re unable to maintain the professional relationship at present but to leave the door open for the customer to return in the future. It may not seem ideal in the short term, but we will benefit in the long term by ensuring that the professional relationships we maintain are mutually beneficial. For those firms currently struggling with negotiations, fee challenges, and communicating value to customers, Robin Lines Associates offers a fully bespoke programme to ensure you can bill and get the fee you are worth. We can equip your people with the skills and confidence to stand firm on fees, effectively communicate value, and we offer several proven methodologies to handle even the most difficult clients. For more information, visit https://robinlines.com/accountants/ or email info@robinlines.com.