This column is by art enthusiast-entrepreneur Rahul Maheshwari
“Dude, he wants me to do a shoot for $50, haha, %$%T%^”
Quite often in sales negotiations we find communication related to potential collaborations dropped without a reason provided by either side when the price is quoted. More often than not the service providers are guilty of hanging up on the prospect when the quote provided is much lower than the expected charge. Unarguably, this is not the best practice to follow. How can we possibly navigate through the sticky ground that is price negotiation? Let’s see through an example.
Assume that you are moving to a new city and are on a hunt for a house.
Dealer : I see you like this house. Can we look to close in on this one?
You : Yes, it is pretty good! How does $350K sound for a close?
Dealer : Sir, that is too less! The house is worth $700K.
From this point, either of the two possible actions can happen. First, both of you walk away from the deal with no further words. OR, the dealer explains the breakdown of the pricing and why it is reasonable at that cost. A certain level of inquisitiveness is also required from a buyer, who should make the effort to inquire as to what makes the buy worth the price asked.
Now when someone asks you to do a shoot for $50, while your charge for the same hovers around $300, keeping the phone down and (perhaps) calling the prospective client stupid will not serve either you or them. Understand that the client does not have knowledge of your industry and therefore requires to be educated on why the pricing is reasonable and will deliver the product which they want.
Following this as a business practice is not difficult; breakdown the components of the service and provide an explicit list of thinks that go into putting the final product together. Say for a photoshoot these will include camera equipment, lights, location, stylist, make up artist, models, among others.
While there is no guarantee that the clients will understand the value of the price, following this process is worth the effort insofar as it educates a person with minimal knowledge of your industry on what all goes into the making a great delivery.
At best, they will realise it’s worth the buck!