To tell the client it’s not my job to subsidise his business ?

[RunningSME]

I had somebody approach me today about providing him with a service so we started to discuss what I could do for him and they really like the sound of it until we got to the stage where we were negotiating fees.

I told him what I would charge everybody else and that is the truth I have 60 clients who will pay the same amount, some pay in advance upfront, mostly they pay on completion of the deal.
he’s replied that they work on tight margins despite having previously told me that one employee generates £6000 a week in profit.

Apparently my competitors charge 25% less.

I won’t say this of course but I really want to reply I’m a bloody single mum from Warrington why is it my job to subsidise your business ?

you wouldn’t walk into Marks And Spencers and ask them to supply you with a sandwich and then tell them that you want to pay 25% less because you can’t afford it they’d laugh in your face.

I think the feelings around negotiating on price varies according to what line of work you're in. Clearly some people are used to negotiating with suppliers and are expecting to do it. DH and I are both self-employed – in totally different lines of work – and for both of us the price is the price.

I don't think I'd be offended exactly, if someone tried to negotiate but I wouldn't be entering into any discussions about it, it would simply be 'no, those are my fees.' DH is a writer and will charge different amounts for different types of jobs, but he sets the price, people can choose to pay it or choose to go elsewhere.

He doesn’t have a long-standing relationship with me at all he’s approached me to ask me to do work for him there’s no relationship.

I realise that - the point was that asking for a discount is a normal part of business and you shouldn't take it personally.

Just say no. Be prepared to walk away, if you have a lot of clients paying what you want you can do this.

Personally I blame "The Apprentice" wannabe school of management for this.

No savvy business person doesn't attempt to get a lower price. You can always say no

He approached you. If he wants to pay the amount your competitors charge then he can go to them. I suspect he doesn't want to go to them but wants your services at their prices. I guess it's up to you to decide do you need this work enough, and will it lead to more in the future.

Ok, just read the whole thread, I think you've had a lucky escape there. Doesn't get his own way and starts with the threats! Are you in a close knit industry, if so, might be worth mentioning to others so they don't feel obliged to do the work for him

You've had a lucky escape! What an arsehole sending you that reply.

What an arse hole and I liked your response. Just file and save it and no you don't need to reply to it.

Do put your prices up though!

The problem with saying something like this, is that it gives nasty people like this man, the perfect opportunity to respond with "And you're not the best, either!"

As an airbnb host I get people asking for discounts all the time, with all sorts of sob stories of why they can’t afford my prices.

My standard reply is, “I don’t want cheap people staying here. I don’t subsidize anyone!” I don’t usually hear from them again.

Exactly. This is how business contracts tend to be made. I’m somewhat surprised that you have 60 clients and have never come up against this. In my industry it’s typical for companies to negotiate 20-30% down from our “list price” for services. Some don’t bother, but that’s quite unusual.

Yes, this is true!

Just give a pleasant and brisk, "Of course, no problem. Best of luck to you!"

YABU. Your reaction seems way over the top and unreasonable. Negotiating is part of business, if it doesn't work for you then be polite about it. Who knows later on they may feel they can use your services and not negotiate so hard. Keep the relationship by not kicking off. It's also irrelevant that you're a single mum and from Warrington.

And to the people saying its just negotiating.

I don't buy that. The OP wasn't saying, "Here's an initial assessment of my fee, open to your negotiation!"

She was informing him of her fees.

And just saying, " How about I pay you less." Is not negotiation. Negotiation in good faith would be something like suggesting a bulk order in exchange for a discount.

OP just be grateful that he's shown himself to be a pisstaker so that you can avoid working with him.

Apparently my competitors charge 25% less

As I remember only too well, this is a standard claim which can be safely ignored if it's not true

TBF your status as a single mum is no more his business than what he'd prefer to pay is yours. The rate for the job is what it is, and personally I wouldn't engage beyond that

And to the people saying its just negotiating.
I don't buy that. The OP wasn't saying, "Here's an initial assessment of my fee, open to your negotiation!"
She was informing him of her fees.

Why did she say "we got to the stage where we were negotiating fees" if she wasn't negotiating fees?

If you are happy with the price you charge then that's it - just state No, my fees are x I find I don't need to discount to fill my books.

We have a straight up day rate - 1k plus VAT everyone pays that if they are just booking one day. If they book a solid week we would discount, currently we are pretty much booked out till early next year, in fact if everything we quote on comes back we might have an issue. We are working on recruiting someone to help filling some gaps. So take a look at what he is committing to and may the negotiation is if he books and you bill for x sessions then you can discount but start lower than 25% and make sure its b4 VAT as well if you are registered.

She literally writes, "I was telling him what I charge.".

I used to take it personally but now I smile and say, 'No problem, good luck!" and rush them off the phone.

I made the mistake twice of agreeing to a discount just to get business. Never again. Someone asking for a discount and offering nothing in return is always ending up as a nightmare client.

She literally writes, "I was telling him what I charge.".

She also literally writes "we were negotiating fees."