Thursday, 12 March 2009

Pricing and Negotiation in a Recession Tactic #1 Added Value

If you are trying to put prices up (and it is a recession) then here's a method to follow.

Tactic #1) Negotiate on 'value added'

eg talking to the client you might say...

"Last year you received £x of profit as result of working with us and the fee was £y.

"This year is the year of added value and we have found ways to generate £x + 20% of profit for you and the new fee will only be £y + 10%... so you are getting even more profit for your investment."

This is not as daft as it sounds but you have to ask for the price rise (and justify it) to get it.

Try it!

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