Every so often, a potential client might push back on price, and try
to negotiate a lower one similar to how they might with a car or some such.

How open are you to lowering your price to get a client?

I don't lower my price because a client asks, the price is firm for the
most part. (Aside from some repeat bookings, and occasionally charities)

That's not to say there isn't any negotiation, for example, a lower price
for less time, and vice versa.

I'll share my thoughts on why in a bit, but first I would like to hear
you folks' thoughts on the matter.

I have three reasons why I don't negotiate price, the main one is
that lowering the price for this one client will lower the amount
for all future work done for them as well.

Also, $50 or $100 could add up if there are referrals, as the folks
who I'm referred to will want the same rate.

The second reason is that in my mind it is somewhat unprofessional
to charge different rates for the same work to different folks.

This might not matter if your market varies enough to warrant very
different fees, but if it is standard, and especially if you list
prices (I do), charging different could put some folks off if they
hear about it.

Who wants to find out they could have saved $100 just by asking?
With online reviews, social media, and simple word of mouth the
chance of a person finding out is fairly high.

Also, once again, you do it for one, and all will expect it.

The third reason is simply profit margins, my prices are already
low end, decreasing price to appease price shoppers is a really
bad idea in my view.

Anyway, that's my reasons for NOT negotiating price, the obvious upside
to negotiating is getting clients you wouldn't otherwise get.

If anyone has any input on why they do or do not negotiate price,
or why I'm dumb and I should, please share.

Great topic with many dimensions. I think for many beginners or those just starting out and wanting initial books and to gain experience having set pricing is preferred but they do typically accept less than their asking price for the work and experience. It happens more on this level probably than any other.

Now you mention "negotiating." That is different from accepting a lower paying gig. Accepting a lower paying booking is simply agreeing to a lower amount. Negotiating is a back and forth process by both parties to achieve a mutually agreeable and beneficial outcome. Many markets this is the norm or process. Cruise Ships, reports, amusement parks, some festivals, tours, and even schools in certain situations all rely on and utilize contract negotiations. 2 and 4-wall productions entail negotiations, Las Vegas, Broadway, and other well-known performance markets operate on this as well.

So what you described is price reduction which is actually quite different than actual negotiations in live entertainment.

As far as price reduction or agreeing to less than your "normal" amount, it depends and is up to you. Is it a gig that offers other value or benefits to you? Would there be a benefit for doing so, or are you simply doing it since it was the request of the prospect? In this case they are likely just shopping on price, so the way I see it you've failed. You've failed in both your presentation to the prospect and in establishing your value.

This is the problem when performers say to themselves (or even to the customer) "I will do this gig at a reduced price to get the booking, client, or account. Then next time they book me I will get my normal price." No you won't. You won't because you have already established your value to the client at the reduced rate, which is what they will work off of in the future. I don't know why performers do this? It is poor business. Again, I get it when you are just first starting out in your first couple of years and you want/need the bookings and experience, but other than that there must be a true reason and benefit for considering to do so.

I will give you an example. In 1985 I had an opportunity to co-produce and perform at an event. The client called and asked me to help produce and then perform at this event. It was going to be a big deal. Major televison coverage, a nationwide audience, celebrities galore, it would be on MTV ( which was HUUUGE at the time), and it was for a good cause - the plight of the American family farmer. The event was the first Farm-Aid. I would be working directly with its creators/producers Willie Nelson, Neil Young, and John Mellencamp. Plus huge artists including The Eagles (I had lunch with Don Henley and Darryl Hall), The Beach Boys, Foreigner, Bob Dylan, the first Van Halen gig with Sammy (I spent two days with them during rehearsals), Kenny Rogers, Loretta Lynn, and so many other top superstars. Oh yeah, it it was for an expected live audience of over 80,000 people! So I agreed to their offer (even though I would have done it for free). There were so many benefits to this to me it was a no-brainer. Now looking back I have probably made hundreds of thousands of dollars, maybe more, from what I received from doing this. The contacts, the relationships, the other bookings, the media coverage and contacts, the celebrity relationships and friendships that were formed there (it was there I met Tom Petty - fiends from there until he died) and so many others, being asked back for a decade of other Farm-Aid events, and hanging with John, Neil and Willie in Willie's Bus (that alone was worth it all for me!)

So for me there was plenty of benefits and reasons to do it and it paid off better than I could have imagined. Now this was kind of a unique and extreme example but it magnifies my point.

Also here is another problem of accepting reduced pricing. When you later then attempt to go back to your normal pricing or when you (in the client's eyes) raise your price you are faced with the whole justification thing. What reason or purpose do you have for the higher price? Has your value increased? How do they perceive this?

There is so much more to pricing than many performers even realize. It is really more than just your thoughts and opinions. It is how it plays to the client, your market, and even to the industry.

So much could be said here but let's see what others add.

I’ve had it happen to me many times. There were times I would and times I wouldn’t, depending on how hungry I was at the time.

But over time and today, the way I see it, and this could apply to any product or service. You have put in countless hours of hard work and dedication to create something that you believe in, and it can be difficult to put a price on it. However, when a potential customer approaches you with a lower offer, it can be tempting to negotiate in order to make the sale.

While negotiating can sometimes result in a successful sale, it can also have negative consequences. When you negotiate your prices, you are essentially telling the customer that your initial price was not accurate or fair. This can cause them to question the value of your product or service and may even lead them to seek out a competitor with a higher price point.

Instead of negotiating, I personally think it is important to have another option for the customer to choose from. This could be a different product or service that is priced at a lower point or a payment plan that allows them to pay for the product or service over time. By providing alternative options, you are showing the customer that you value their business and are willing to work with them to find a solution that fits their needs and budget.

Furthermore, having alternative options can also help to build trust and credibility with the customer. When they see that you are willing to work with them, they are more likely to view you as a reliable and trustworthy provider. This can lead to repeat business and positive word-of-mouth recommendations, which are invaluable in today's competitive market.

For some negotiating prices may seem like a quick way to make a sale, and it can be, but it can have negative consequences for your business in the long run. Instead, focus on providing alternative options that show the customer you value their business and are willing to work with them to find a solution that meets their needs. This approach can help to build trust and credibility with the customer, leading to increased sales and long-term success.

Tom

You have a value. You should know that value. Don’t negotiate away your value ever.

There are however a plethora of reasons to offer a better price to certain clients. None of which should be based on how “hungry” you are at the time.

Here is why negotiation can be a negative. First off it is an inherently dishonest proposition. Think about it for a second. You hit them with this high price and if they don’t push back then they go for it. BUT if they are smart enough to push back, you will go lower. No reason, nothing other than they just asked. You want them to pay as high a price as possible. So instead of having a value, you just have a price based on what you think you can get out of them. They know you are now willing to just clip them for as much money as possible. Not the way I want to start a relationship with a client.

Thee are ways to negotiate if you feel. You must. If it is a give and take. If you are getting something for the money being conceded then it doesn’t look as inherently dishonest.

It is a great topic and everyone has their own way.

My experience has been that when a potential customer asks for a discount, they usually are quite pushy about it (even rude). And then if I gave it to them, they often became a problem customer, making more demands later on, or not appreciating the deal I gave to them. So, it wasn't win-win.

Occasionally, when I stand my ground over the price, a potential customer would still book. At that point, I wouldn't really hold it against them that they had asked for a discount. I just act like they accepted my regular fee all along.

I'm willing to walk away if they don't like my price.

This is one of the reasons that I post my rates online. So, I don't have to deal with tire kickers, or people who don't value me or what I do.

- Donald

Not a bad policy.

Heck when people tell you who they are, LISTEN to them! Seems as if they would slide right into the problem client category that is a good point. Great post Donald.

I will add a disclaimer that not everyone who asks for a discount will be a problem client. Just a good percentage of them.

Thanks Danny, this is the thought I was trying to come to in my ramblings.

Man, I couldn't agree with this more. Truer words have never been spoken. This is the problem with those that shop only on price or have the intent to ask for less regardless of what ever you quote them. This is always a good indicator of additional problems to come. Same for events on a Friday or Sunday, as these seem to be another red flag for someone with money and pricing concerns.

We have monitored this very closely and our findings have been very consistent with this.

Plus, since most prospects use typical consumer mentalities when shopping for entertainment (until they should be properly educated by us on how to properly shop for entertainment) they wouldn't go to a mechanic, tire shop, brake shop, muffler repair shop, daycare center, hair saloon, or other such consumer businesses and ask or expect them to drop their price just for the asking. It is ridiculous. We offer professional services and if these are our prices - plain and simple.

This is also why our services (as a business) should offer more than just our performance. The customer experience (not just customer service) should create added value, as well as other value-added benefits and offerings.

I agree most would never ask a mechanic, tire shop, or some other business place to cut the sticker price.
But they have no problem shopping around or even asking directly for a similar item that has a cheaper price.

I believe Donald is one of those that offer price options with different packages.
So he is solving a problem before it happens.

Tom

People ask mechanics for discounts all the time. I literally r weeks ago watched it happen in a tire shop and the guy told me it happens all the time.

Nobody pays "regular retail price" for TIRES.

(Unless it's a roadside emergency .)

True, seems like there is always a Tire Sale somewhere in town.

Unless it is an emergency

Tom

It seems as if their entire hook is ac sale price.

And the roadside price is probably jacked up so it isn’t regular either.

In my experience. I book more shows from people who ask for a discount and I don't give them one then from those that ask and I agree to a discount.
I don't want the rep as a discount magician either.