In the fall, I submitted a proposal for some research and presentation work on an hourly basis. The client came back with a crazy number (set fee) with an expanded scope of work in a 6 week timeline (vs. my 3 month timeline). Was there a way to save it? Should I have gone back for just a piece of it? I learned later from a business coach that you should never say no outright. What are your thoughts?

@kc_kreative Absolutely agree with @blogsbyheather here! Standing by your estimate and turning down the contract shows integrity, and you’re perhaps better off going after other contracts that will respect your time and hourly rate. Now, if you think you gave a wrong estimate, you could always go back, but since there is a set fee and less time to do so, why would you?

Was there a way to save it? Not sure. Sometimes it’s better just to walk away and not think about “what if”…

@kc_kreative while I think it’s worthwhile trying to ‘save” it, you cannot give away your hours.  @danonbranding may have hit on their sore point.

A face to face would be helpful – what could you get them in their timeline? Could you do a fixed price with a fixed scope, not their expanded one.

I understand as you try to get some momentum going, you need clients, and want their recommendations and referreals. Just be carefule to agree on something you can execute.

@kc_kreative We cannot close every deal. I tracked every lead I got last year and found out that about 30% of them were unqualified, about 20% evaporated during the sales process (this one, for you) and 50% closed. I am very OK with the 30% and the 50%. Those that faded during the sales process? I would either like to dis-qualify them sooner (so I do not waste time on meetings, research and a proposal) or move them better into closing, as I recognize that I lose some of them due to my own issues during the process. So all in all, I disagree with that coach. My advice would be to figure out whether there was an opportunity earlier in the process to find out that they could not / would not be able to afford you.

@abigailgorton @kc_kreative@danonbranding @joanmuschampfagnani@fredericgonzalo 
Here is an article I just saw today – about underbidding….http://smallbiztrends.com/2012/01/what-to-do-when-underbid-on-a-project.html

Enjoy,Heather

Great article, Heather. Negotiation may be part of the process but so is clear communication. You’re trying to help each other find if there’s a fit. Some prospects miss this and assume “They’re meeting with me so they’ll do what it takes to get the business.” Not so fast. Generally speaking, you have to be leery of those who want to compromise your price and timeframe so much that you’re ultimately not sure you can deliver the product that you’re happy with. And YOU have to be happy with the product, not just the client. 

@blogsbyheather It is a great article. Scenario 2 & 3 fit my particular situation. Now I know how to better handle these when they come up again.

A few thoughts to consider:

Maybe next time you could provide a modified version of your plan to work with what the client is willing to pay. You could acknowledge that the short time will limit what you can do, but you also want to try to work with this person. Sometimes as you work and the client sees the value of what you do, the time you spend working can be expanded along with more monetary compensation.

Another possibility is that if you had decided to work with the person, you might have found that this was a difficult client. Even if you were given the chance to do more work, you might have found that this person was still trying to nickel and dime you. Therefore, your initial experience could have been indicative of what working together would be like for you. That first encounter may very well have given you a sense of who the potential client is and how she or he operates.