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December 14, 2017

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Make Price Scalable, Never Negotiable

A terrible choice made by many in staffing and recruiting has been in negotiating fees and bill rates, with divulging proprietary information, such as markups, coming in a close second. Some people say “the horse is already out of the barn,” insinuating we’re stuck with these issues as a permanent condition. Last time I checked, the only permanent condition in life is death.

A growing number of companies are having tremendous success in scaling price, a far better solution for all parties. If a customer wants to pay less, the value they receive scales down proportionality. Those that want more pay for that value.

Never, ever, should any firm in our business simply lower price without removing value. Doing so sends a clear message to buyers that fees and bill rates are always inflated, since firms can simply change the digits without impacting the level of service. Bottom lines aren’t the only thing to suffer as credibility takes a hit every time this occurs.

What’s also highly encouraging is that price, more and more often, never comes up for those who provide buyers with multiple options. A basic level of service that gets the job done is offered at a fair price, with escalating value options being provided at an escalating price. Buyers still get a “deal” as they elect what they receive and spend.

Savvy leaders who require their teams to always scale, never negotiate, have watched those horses go back in the barn all on their own. For those who choose to continue dickering over price, good luck in dealing with the crap from rampaging stallions.

- Scott Wintrip

Scott Wintrip, PCC (scottw@StaffingU.net) is Founder and President of StaffingU, the leader in providing relationship-building techniques guaranteed to grow your business. For information on StaffingU's programs and services, including TeleClasses (live telephone-based classes), Virtual StaffingU (web-based courses), individual and group coaching, on-site training and speaking, and consulting visit www.StaffingU.net or call 866-SU-WORKS (789-6757).