When it comes down to doing a job for a customer, it often boils down to two things; price and performance. The first is negotiable; the second is not. To me, this is a black and white issue, but it never ceases to amaze me how confused some people can get over these two issues.
When we begin to work with a client, price seems to overshadow much of the conversation. It becomes a kind of obsession. The client is on one side of the fence, trying to get as many services as possible for the price. There’s nothing really wrong with that, as long as he or she is reasonable with their requests.
On the other side of the fence is the vendor, and the vendor is also trying to get paid as much as they can from the client. Again, assuming the vendor is ethical, and has the best interest of the client at heart, there is nothing really wrong with that either.
It’s not the negotiation but rather, what happens after the negotiation that often troubles me. I belong to the Lee Jolles, (my father,) school of negotiation, and that school had one, consistent motto: “A deal, is a deal… even if you don’t like the deal anymore.” If you don’t like the deal, don’t agree to it. But once you do, by golly, by gosh, you live up to that deal!
Think about it for a moment because we have all been faced with this moment of truth. Imagine you have struck a deal to do a job, and for whatever reason, you agreed to do the job at 50% of your normal compensation. Maybe you agreed to do this job in a moment of weakness, or maybe it was carelessness, or maybe you needed the work, or perhaps it was a favor. Once the deal has been agreed to, the price, along with the reasons you accepted that price, are irrelevant. Can you remove that number from your brain and do the job with every ounce of commitment you possess, or does that number hold you back?
Sometimes this is harder than it sounds. Can you give the same effort to a client who will generate far less commission? Shouldn’t the real question be, “Do I want to take on this client or not?” In my line of work, I often hear speakers grumbling about the deal they struck, and remarking how their “heart just isn’t into the work.” I find that reaction unforgiveable because, in the end, price should never have anything to do with performance.
I believe performance should have everything to do with pride. Performance should have everything to do with integrity. Performance should be how you sign your work. Can you imagine signing your work by saying to a client, “You think this was a good job – you should see how hard I work when I’m paid more!”
Price and performance; they may be partners early in the conversation, but in the end, one has nothing to do with the other. If you can remember that, and make that your mantra, I think your clients will love how you sign your work, and so will you.
“The Quality is remembered long after the Price is forgotten” has been one of my attitudes when I am the one buying something, whether it is a product or someone’s service. Having paid premium dollars for someone to perform a specialty job I couldn’t do in building our house, only to find out the person wasn’t really qualified to do the job, was a painful experience. I will never forget the shoddy workmanship whereas I have written off the cost as the price of “a learning experience.” I have lived my life trying to keep my quality of service at a high level no matter what the agreed price was. It has proven to be advantageous because of referrals which could then be turned into more lucrative agreements.
You hit this idea outta the park, my friend.
As did you Micky. As fellow Xeroids from the 80’s we both learned that quality of service comes from within. Great hearing from you and thanks for sharing your comments!
Thanks Rob. I 100% agree with you on this.
Well that makes things easy! The fact is Kurt there really isn’t a lot of gray here. Like the way we play sports, in the end, the only thing we can really control is our effort, and you and I take pride in our effort. Thanks for posting!
Ditto!
I like, “ditto!” Me? I’m a “by golly, by gosh” man! It take discipline to separate yourself from price, but it also displays integrity. Thanks for posting Brian!
Not 100% on this with you Rob. You make this sound cut and dried and it is not. Yes, 100% performance for what you agree to is necessary.
You say: “Price and performance; they may be partners early in the conversation, but in the end, one has nothing to do with the other.” I THINK THEY DO.
Sometimes you take the hit for the opportunity for follow-on work. In that case, fine, carry on, don’t gripe. 100% performance for less than 100% payment.
But sometimes you have a client who is willing to accept less for less price. If your product is flexible and they understand that they will get less for less price – carry on.
My overall take is ‘Re-define what you sell first”. Don’t agree to 100% work for 60% price without darn good reason’. Sometimes 80% work for 80% price is the goal. (Again subject to how much you want – and how likely you will get – future work with that client.)
That’s why I love the BLArticle® postings. I have tremendous respect for you Pat. I think you make a great point regarding price. Different businesses require different forms of negotiation. I do not want to encourage readers to get sloppy or afraid to stand up for his or her pricing, but I do want them to divorce themselves from that decision once it has been made. Thank you so much for showing a different perspective on this Pat. I continue to learn from you.
Lots of wisdom in this, because I think what you’re arguing for is ethics and integrity. And that doesn’t necessarily mean you can renegotiate, but if you have a deal and the other party is not open to a renegotiation, then it seems like the honest course of action is to honor the original deal and putting a song in your heart while you do it.
Right-o! Remember, we can always walk away and not agree to the pricing… but when we do, I like your approach. I wish more vendors out there would put, “a song” in their hearts. Thank you so much for posting!
Hi Rob. I 80% agree with you on this. You mentioned two words that are crucial to make it work: reasonable and ethical.
Switzerland is in the BLArticle® house! Great hearing from you Patrick. Now tell me what that missing 20% is?
Being the great sports-fan you are, Rob…I think I’d like to use the example of our ‘beloved’ Redskins – and that last game they ‘played’ vs. the Kansas City Chiefs!
These young guys get paid millions of dollars – to put forth their very best effort – and most sports fans agree – that they ‘laid down’on the job in this game! They ‘quit’on their fans…and, in reality..they quit on themselves! They brought shame to the great game of football, and to the wonderful Redskin ‘tradition’ that has persisted for over 80 years!
By gosh, by golly…you perform the way you’re supposed to perform – no matter what! Regardless of whether it’s in sports, the business world, your personal life…or what!
Go ‘Skins…!!!
JM
“C.T.”
Boy, do I hate the word, “quit.” I’ll bleed burgundy and gold forever, and I think we are feeling the effects of the salary cap penalty that ends after this season, but I hear you. It’s the athletes that want to be paid more, and when they cannot renegotiate their contracts they remark it might affect their play. That one, by golly, by gosh really makes me crazy.
Hail to the Redskins. There’s always next year…
I think people are much more motivated by respect than by pay. Often pay is only important to them as one way of measuring respect.