Negotiating is something many creative professionals have some anxiety about. In addition to the anxiety, everything you do and say at the beginning of your pricing relationship with a client will be very difficult to change later. It's not that hard to get off on the right foot with a new client, as long as you have a clear strategy in mind. Here are some tips to get it right from the beginning of a new relationship; or the start of a new project with an existing client.

Remove Yourself

Remove the "you" from the picture when price comes up. It is difficult for most of us to price "you". Talk about what "it" is worth or what "the project" will cost, not what "you" charge. No matter what the project is, making pricing too personal reduces your objectivity and ability to negotiate. It's about the value the client will receive, not about "you."

The Forms

Use industry standard forms with legally accepted terms and conditions, and know your industry business practices and standards. If a client takes advantage of your lack of knowledge on price or copyright, you'll never be treated fairly in that relationship. Don't re-invent the wheel creating an estimate form when dozens of association lawyers have already designed the forms to protect you; i.e. the Graphic Artists Guild (www.gag.org), the American Institute of Graphic Arts (www.aiga.org) or the Society of Illustrators (www.societyillustrators.org). Get your relationship off to a professional and business-like start by using professional forms.

The Decision Maker

Find out who is really in charge and if the person you are dealing with has both the responsibility to find you and the authority to hire you. Learn how to "talk price" with the negotiating scripts below and use them wisely.

Negotiating Your Price

Don't quote prices off the top of your head! It's very, very rare that a fair price can be determined before the project scope is fully described and understood. Especially with a new client, plan on calling them back after you get the project description. This is most important when you don't know the client's budget or whether you have the job for certain. Ask when would be the best time to call them back. Often, clients have much more time to decide than you feel they do, and you will need the extra time to create an accurate cost estimate. This also shows your client that you respect their request of your creative services.

Project Description

Get complete and detailed project information. It is impossible to get too much information; you may need the extra information later to negotiate and you will need it to accurately estimate a price. When you call them back, you can use the scripting below to get some feedback on that mysterious budget figure they probably won't reveal. If they do tell you the budget -great! Then you know what you have to work with. Also, client feedback on their budget will help determine exactly how much work you will put into your written cost proposal.

Talk About It

Prepare this verbal presentation script in advance so that you can handle any response. For example, when you ask, "What you described will cost $5,000.00, how does that fit your budget?" the client will respond positively or negatively with information you can use to take the next step.

If they respond positively, then you can put it in writing. If they are negative about your price, then you go to the next "considerations to negotiate" step before you put anything in writing. Be prepared to discuss considerations until you and your client agree the price is now "in their ballpark".

Considerations to Negotiate

Before the final step of presenting a written estimate, you may need to discuss and negotiate the project price. Again, if you don't know the client or whether you have the job, this is an important step. (By the way, your regular clients do not usually need all of this effort)

When you negotiate a price, there are only a few possible outcomes:

  • The client says, "Sure, that sounds fine"
  • The client says, "I can pay more money" (okay, that is a rare occurrence)
  • The client says, "I don't have that kind of money!"

So what do you do when the client wants to pay less? Answer: you walk away - or you negotiate. Personally, I will support you if you walk away but I do not accept the notion of dropping your price without negotiating some consideration (a change) to the project description.

It is damaging to you and to the industry. Never drop your price for a specific job description without some consideration made by you or the client. Not only is it unprofessional to do so, it makes your client doubt the value of your work or the credibility of your price in the first place! In addition, you'll probably lose money (and some self esteem) on the project and that client will try to get the next creative professional to drop their price without a rhyme or reason. You can always walk away if you are not willing to negotiate, or the client simply can't come close enough in their negotiation to what it really costs to do the work.

When the client's budget is close enough for you to think of doing the job, look at considerations to negotiate. Certainly take any and all negotiating seminars and classes you can find but you must learn at least this one technique. It is a simple concept to use and explain. For the client to pay less the client will get less of some aspect of the project description that you both agree to or you will get more of something tangible that you both agree to.

Simply put, when the client names a price lower than what is acceptable, your scripted answer is any variation of "Let's take a look at how it can be done for that price." This is a win-win negotiation.

Before your next negotiation though, you will need to put together these two lists in advance of this meeting or discussion. One is a list of the considerations the client can make to pay less. For example, they can get less usage rights, fewer personal consultations, smaller quantity of pages or images, less thumbnails or approval stages. Anything you can think of that will help the client pay less without damaging the project.

Second are the considerations where you can get more of something for the client to lower the price. To do the work for less money you can get more time, more printed samples or better payment terms. What tangible items are available to barter? Work on this today! Your negotiations are simpler and easier when you have lots of items to choose from on your two lists.

In conclusion:

  • Take yourself out of the picture; negotiate the project, not "yourself"
  • Use industry standard forms
  • Find out who makes the final hiring decision
  • Get a thorough and complete project description
  • Be prepared to negotiate, know what you are going to say

Most of all, do not accept less money for the same amount of work. You will damage your chance at a profitable relationship with clients. You will give your work away. Don't do it. Instead, look for the win-win. Learn successful negotiating techniques to get the best return on your creativity and your business.