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6 Words Every Founder Will Hear
"Can you do it for cheaper?": the dreaded 6 words that every founder will hear at some point, and why you should stand your ground and defend your worth.
Michele Li-Fay
7/25/20255 min read
There will come a time in every founder's career where he or she will hear the 6 words that make them feel simultaneously bemused, disappointed, frustrated and desperate:
"Can you do it for cheaper?"
When you're first starting out, it feels like you cannot disappoint or refuse a client, so you feel obligated to settle, or to compromise, or to give in. After all, money is money, work is work, and exposure is the most important thing, right?
I have most certainly been there. When you've worked hard on a proposal, crunched the numbers again and again, making sure you're not pricing yourself out of a job but also that you're not undervaluing yourself, it is disheartening to open the reply and see those 6 words no founder wants to read.
But the reality is, unless you have a real reason, or you have wiggle room built into your initial cost, you should take a deep breath and stand your ground. And here's why.
It is human instinct
Humans love wins, no matter how big or small. We feel a thrill when we get given a freebie, we brag about the latest bargain we've been able to snag. So it is natural that people want to feel like they're getting the best deal they can. This means asking for discounts, simply because you never know; if you don't ask, you don't get.
Once, while working in a Tommy Hilfiger store, a customer came in and asked if I could give her a discount because the coat she was buying was expensive. It's fairly obvious that in most stores, the price on the tag is the final price (unless you are a super VIP and buying out the store regularly). At the time, I was surprised and bemused by her audacity, but it just goes to show that people will ask for a price reduction, no matter where and what the situation. Because the worst is that they get told no. So why not ask?
This then means that you shouldn't feel obliged to meet their demand. They are just trying their luck; don't give up your worth just because they dared to ask.
You know your worth
One of the biggest headaches and pain points for every founder is the price list. How much should you charge for your products or your services? You have to factor in costs--whether material or general--as well as competitors, time taken, expertise required and so on. It's a painstaking process that, until you become a founder, you will never truly understand the literal blood, sweat and tears that go into it. A very simple price list is the product of multiple days and nights of indecision, correction and paranoia.
So if you've set your price at that level, there is a reason why you did so. Only you know how much time every product takes to make or every task takes to complete. If you strive to deliver Rolls Royce-level service, don't settle for a Nisasn price point. Don't let the momentary panic of potentially losing a sale make you doubt your worth and throw your value away.
In addition, if you do succumb and accept the job for a cheaper rate than initially proposed, you will likely lack the motivation to complete it to the standard that you normally perform to, because the amount you're being paid is not reflective of your value and worth. You may even start to resent the job. Your responses could get slower, the task could get deprioritised, especially if you have clients coming in who are paying at your preferred rate. And if you let your standards slip, you could leave a poor impression on the client, who could potentially post a poor review, or tell their peers and contacts that you are not to be trusted.
There will always be someone cheaper
I've had multiple prospective clients reply to my proposals and quotes, claiming that another vendor has quoted them a cheaper price, but they want to work with me, so can I lower my price to match the quote from X? Or can I just do it in exchange for a reciprocal service?
And while I'm flattered that they want to work with me (or claim that they do), the reality is there will always be someone out there who says they can do what I do at the fraction of the price. Similarly, I am likely cheaper than some others out there who offer a similar service. But I know what I am capable of, and what I am comfortable at offering my services for.
I often find that if a price is too good to be true, it often is. The quality of the work won't stand up, the aftercare and communication falters after the contract is signed, the final product is subpar. There is definite truth in the saying "you get what you pay for". I have seen websites created for half the price of mine, and, well, let's just say they definitely look like they cost half of what I'm charging. So if I am able to deliver double the quality, why should I not be paid double the price, aka my actual true value?
You are not a charity
This is very important. Especially for new founders, it's easy to think "well, it's just one client. Surely I can let that slide?". While the early stages of your business may feel like a do-everything-for-any-price situation in order to build your client roster, you started your own business to support yourself. So you need to ensure you are paid a fair wage, whatever that may be for you, and shouldn't settle for less. Otherwise, your business may not survive.
If a prospective client tries to guilt you into giving them a discount or a free service, they are not valuing your time, effort or expertise. Maybe they are struggling, maybe they have a small budget. But as cold-hearted as this may sound, it isn't really your problem. Sure, you can work out a payment plan that works for both of you. Yes, you can throw in a few little freebies that won't cost you to sweeten the deal. But every business requires investment to grow. You have likely dug into your savings to get your business off the ground; you shouldn't sacrifice your own bottom line to ease their financial burden. They are essentially trying to get the maximum out of you with minimum input and investment. They may say they have bills to pay, and that is most likely true, but so do you. Don't let your need for experience and clients force you to give away your goods and services for free. You are not a charity.
Conclusion
We know it's tough. Sometimes you have a dream client that you really want to land and don't want to lose out on. And if you've built in some breathing space into your prices, then fair play to you. But you could set a dangerous precedent: you could lower the price for one client, and then if another client catches wind of it, they could demand the same too.
You know your worth, so don't settle for less, no matter how petty or significant the amount. The best clients are those who value your knowledge, expertise and ability, and trust me, they are out there.
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