The cost of compromise
“I need a new _____, but can only afford to pay you half of what you charge. Can we make something work?”
We’ve all experienced this client. The one that wants you to provide work at a discounted (sometimes severely discounted) rate. Occasionally it’s an ask that is seemingly easy to brush off, but sometimes accepting a low- ball ask is really tempting. Their project is something you believe in, they’’re a friend of a friend or you have some extra hours to work with and an extra cash flow doesn’t sound all bad.
We get it though, we all operate on a budget so that’s something we totally respect. But since we’re friends now, let’s talk about why taking on that underpaying project versus sending them elsewhere could be the worst choice of your agency life.
You’re devaluing the industry
A bold statement, right? We mean it. When you do great work for a very small cost, you’re teaching that client that it’s totally OK to ask for those favors in the future. And whether they continue to work with you or they move on to working with another agency/freelancer, the odds are high that the first words out of their mouth when given a high bid will be “well the last agency…” So if that’s what you want, to make us all cry and shake our fists at the sky, then go ahead.
You’re taking work from the smaller guys
As a small agency, we hope that clients can’t work with some larger agencies because of the higher overheads or that those larger agencies pass on projects because of budget restrictions not fitting in their pricing model. We want to do the same for other agencies that are smaller than us. What we’re trying to say is if a client can’t afford our hourly/project price, we don’t lower the price just because we want to fill our timesheet. We pass on it so it goes to someone who can provide them the same service at the price comfortable with their business.
It can (and probably will) turn into a habit
Ever heard of a little children’s book called “If You Give a Mouse a Cookie?” When you significantly discount your work, there’s a good chance you’ll find yourself going down the slippery slope of being asked to discount the work over and over. It can be the same client asking you for more projects to be completed at a discounted rate, or they start referring their friends over to you for a “quality work for super cheap!”
Bottom line is this: if you give a mouse a cookie (discounted work), they’ll keep coming back for more (and that’s not a good thing).
You will devalue your own work
You’re awesome, and so is your work. When you let a client talk you into cutting your project cost in half, you’re devaluing the blood, sweat and tears that go into what you do. If they can’t pay you what you deserve, help match them with another agency that can be a good fit. Know your/ your agency’s worth and stick to it.
Let us know what you think in the comments below!
