Negotiating price

[heni30]

I've got a meeting next week with a company who does quite a few renderings on a regular basis.

 

A book I read says the person who gives their number first is at a disadvantage.

 

I REALLY want to get in with these people - it's the exact niche I worked in for a long time.

 

At some point price per rendering is going to come up. I have a ball park idea what they are paying now.

 

1. Can I bring it up first and just blurt out - "What do you usually pay"

2. If they ask first - can I change that amount depending on their reaction?

 

If they seem hesitant can I say "but we can work something out"?

 

I've had people say "Well that's certainly generous!" and I mentally kicked myself in the butt - hard.

Can I say "I'll charge what you normally pay minus 5%.

 

I'd be willing to lower my price some because of the volume involved. I can adjust my normal process to have the same profit.

 

Or, like in the movies, have both of us write an amount on a piece of paper at the same time.

Edited September 10, 2014 by heni30

[neil poppleton]

Sounds like you know exactly whats involved with what they require and so you need a starting price you would be happy with but if they start to negotiate then you need a reduced fee that you could reduce down to and still be happy with.

If it all gets messy then ask if you can go back with fees the next day once you have evaluated everything.

[heni30]

Yeah, I just spoke with a friend and he had some good suggestions. It seems obvious now. Like, numbers don't have to be blurted out. Start talking about - "well it depends - size - information - changes - number of renderings" - etc. and with this small talk bring up a tentative figure - bounce it around.

 

Get a feel for each other and gradually start zeroing in on an amount that we both are comfortable with.

 

Have it be kind of a negotiation dance of sorts where you are constantly sending out signals that gradually nudge things in the direction of mutual satisfaction.

Edited September 10, 2014 by heni30

[Scott Schroeder]

Shoot high and let them talk you down to what you would normally work for. That way they feel like they negotiated you down, but in reality you are pretty much where you want to be in price. If they accept your high offer, SCORE!

 

You can talk about bulk pricing, but make sure you state that the bulk rate is continent on you going over the scope and CAD first. You'll want to make sure that if you are doing 25 renderings that you actually can re-use things and that they are not 25 unique renderings.

 

The first meeting should be ballpark figures only. You'll want to give yourself some time to go home and digest the information.

[heni30]

We've been going back and forth with emails and they've seen dozens of my work samples. Can I just skip printed images and just give them a CD?

[Tommy L]

I wouldnt give numbers in the meeting. Go home, have a cuppa and look at drawings and a brief first. Remember, when you give the first number, that number will be considered the ceiling, not the average.

There are exceptions. I had a company wanting me to drive 20 miles for a meeting about doing 2 images. No drawings. Sketchy brief. We had the money conversation before I went. I didnt go.

[heni30]

Well, the meeting went well. Having hard copy to discuss and leave behind is essential. In acetate sleeves but unbound so that they can be spread on a table and be viewed in relation to each other (I had considered looking at samples on a tablet and leaving a CD behind.)

 

I took your advice Scott, and started high. She said she wanted to negotiate some and I said fine.

 

There might be some design work from time to time which I could easily do but have not done before.

 

I'll have to figure out what rates are - how it figures into the renderings part. These are small airport eateries/bars.

 

Should be interesting. Thanks for the tips.

Edited September 13, 2014 by heni30