Should I Reduce Fees In Order To Attract New Clients?

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Oct 14, 2015
This article is part of a series called Ask Barb.

Note: Barb Bruno is one of the most in-demand trainers and conference speakers in staffing and search. We asked her what questions came up most frequently this year during her presentations. Over the next few weeks Barb will share these questions and her responses.

If you want to be known as the Walmart of the staffing and recruiting profession, this could be your solution. But I believe that in this candidate driven market the services you provide are more valuable than ever.

Clients are not as focused on price or margins as they are in obtaining a strong return on their investment. You can’t present “B” candidates and charge “A” rates. It’s also not good business to give a better price to your new clients than you’ve quoted to your best clients.

Attempt to change the conversation from rates to return on investment. If you could present someone who could do 50% of the job and charge 50% of your rates, is that a good deal for a client. Of course, the answer is no because they need 100% of the skill sets required.

Another idea is to relate your fees to the products or services provided by your clients. Would they be willing to reduce their prices to a new client? It’s important for you to also realize that the discount you are giving a client if you go from a 25% fee to a 20% fee is not 5%, it is 20% because 25% represents 100% of your fee.

The only time I think it is wise to offer a discount is for multiple hires. You could discount a flat amount off every third placement or fill. Do you want to be Nordstrom or Walmart – the choice is yours. Often reduced fees and rates also end up being collection problems. Pick up the phone and work with clients who understand the value of your services.

This article is part of a series called Ask Barb.
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