Audio professionals often find themselves in challenging negotiations where price seems to be the client's only concern. While it's understandable that budgets are a significant factor, it’s crucial for audio professionals to convey the value of their services beyond mere cost. In this article we explore effective strategies to negotiate with clients who are primarily focused on the price, ensuring both quality and value are communicated and understood.

Start With Empathy

Imagine being a producer on a TV show, movie, or working in a creative agency making commercials. I spent several years working in a commercial post house in Soho, London. Our clients were some of the top names in the advertising world, such as DWB and Saatchi. We made TV advertisements and content for some of the top brands in the world including; Lever, Apple, and L'Oréal. I saw how the budget for a 30 second TV ad went from £50K to £15K in a few years, but the client still wanted the same creative and quality.

Often the pressure being applied to you is coming down the food chain. Sadly, most post houses or music studios are at the bottom of that chain. To effectively negotiate, it’s essential to first understand why clients may be fixated on price. There are several reasons for this:

1. Budget Constraints: Many clients have limited budgets and are under pressure to keep costs down.

2. Lack of Understanding: Clients may not fully grasp the complexities and nuances of audio production, leading them to undervalue the work involved.

3. Pressure From Above: Often you’re not negotiating with the boss!

4. Previous Experiences: Past interactions with other service providers might have set unrealistic expectations about pricing.

By empathising with the client's situation, you can better address their concerns and tailor your negotiation approach accordingly. It’s fair to ask early on in the negotiation, and by doing this showing that you empathise with the person, about their own budget constraints. At this point you can then suggest you work on finding a solution together, this takes it from being a battle of wills to a problem you both need to solve. 

Listen, Listen, Listen

Too many people go into a client meeting, often the initial meeting, by setting out their stall. I think this is a mistake, for two reasons. First, how can you possibly offer a solution if you don’t know anything about the client or their needs? Listening helps you understand about them, their story, their values, their concerns, and of course, the project. Second, going in first with your pitch feels like a hard sell and desperate.

During a first call with a client we say right at the start; “Today we want to know about you and what you need help with. This call is going to be 90% you doing the talking and we’re going to listen. If you need to know more about us and our work then we will be happy to answer those questions at the end.”

There’s two reasons you can do this with confidence. One, most people only call you when they have a problem that they need you to help with. Two, they have contacted you so they think you might be the answer. It’s highly likely that they’ve done their homework already, so there’s no need to go into car salesman mode. (It’s usually a man who does this.)

The most important rule of first contact client negotiation is to STFU and listen. If you forget everything else in this article, remember this.

Once you have the answers to the questions outlined above then it’s time to move onto the meat of a negotiation. If a client thinks you are listening to them and you get what they want then they are more likely to work with you on price.

Establish Your Value Proposition

One of the most effective ways to move the conversation beyond price is to clearly establish your value proposition. Here’s how you can do it:

1. Highlight Unique Skills and Experience: Showcase your expertise, and any special skills that differentiate you from competitors. Mention notable projects you’ve worked on and the outcomes achieved.

2. Showcase Portfolio Examples: Provide concrete examples of your previous work. High-quality samples can demonstrate your capability and the level of excellence clients can expect.

3. Explain Long-term Benefits: Help clients understand the long-term value of investing in quality audio production. 

Clear Communication

Clear and transparent communication is critical in negotiations. Here are some steps to ensure your message is understood:

1. Transparency in Costs: Break down the costs involved in the project. Explain each component – such as equipment, studio time, editing, and mixing – so clients see where their money is going.

2. Detailed Proposals: Provide a comprehensive proposal that outlines the scope of work, timelines, and deliverables. This helps avoid misunderstandings and sets clear expectations from the outset.

3. Addressing Concerns: Be open to discussing any concerns the client may have about the pricing. Addressing these directly and honestly can build trust and pave the way for smoother negotiations.

Offer Flexible Solutions

Flexibility can be a powerful tool in negotiations. Consider offering various options that can accommodate different budget levels:

1. Tiered Pricing: Create different quotes that offer varying levels of service. For example, a basic package might include essential services, while a premium package could offer additional features such as advanced editing and bespoke sound design. I’ve often given bronze, silver, and gold quotes to clients so they can see where the added value is and decide what they keep. You might think they need the gold, but in my experience often clients want the gold package at the bronze price. I’d rather have 50% of a job where I’m making profit than 100% where I’m not.

2. Add-On Services: Provide clients with the option to add or remove certain services based on their budget. This allows them to prioritise what's most important to them while staying within their financial constraints.

3. Trade-offs Explanation: Clearly explain the trade-offs between different pricing options. For instance, opting for a lower-priced package might mean fewer revisions or longer turnaround times.

By offering flexibility, you empower clients to make choices that align with their needs and financial situation while still recognising the value of higher-priced options. You also get to make profit rather than just turnover. I don’t know how many times when I was working in post houses in Soho where competitors were throwing everything in for a silly price. It was depressing losing the job, but not as depressing as seeing the bargain bucket post house close 6 months later.

Shift The Risk

It's crucial to make clients aware of the potential repercussions of choosing the wrong vendor. This approach helps them see beyond the immediate price and consider the broader implications:

1. Reputational Damage: Ask the client to consider how their boss would react if the project turned out poorly due to substandard audio. A low-quality product can reflect poorly on their judgement and harm their standing within the company.

2. Brand Impact: Emphasise how releasing substandard content can damage their brand's reputation. Poor audio quality can result in negative feedback from their audience, which can be hard to recover from.

3. Emotional Appeal: Encourage the client to think about the stress and disappointment they might face if the final product doesn't meet expectations. Would saving a bit of money now be worth the potential fallout?

By framing the risks in a way that makes the client consider the broader implications on them, you can help shift their focus from immediate cost savings to the long-term value and security of working with a reputable professional. It’s amazing how many people find more budget when it’s their job on the line.

Reputation Is Tomorrow’s Profit

To reinforce your position, highlight your proven track record:

1. Client Testimonials: Share testimonials from satisfied clients who can vouch for your quality and reliability. Real-world endorsements can be incredibly persuasive.

2. Case Studies: Provide case studies of past projects, detailing how your services made a positive impact. Include measurable outcomes like increased audience engagement or improved brand perception.

3. References: Offer the opportunity for prospective clients to speak with your current or previous clients. This transparency shows confidence in your work and allows them to hear firsthand about your capabilities. With any new client I always offer them some email addresses of current clients and invite them to contact them. I don’t know what they ask and what response they get but it’s never bit me on the ass yet. 

Be Bold About Your Offering

While it’s important to remain professional, don’t be afraid to be bold about what you bring to the table. Here’s how you can do this without coming across as arrogant:

1. Confidence Without Arrogance: Clearly state that their work is in good hands with you. Emphasise your dedication to delivering the best possible results, acknowledging that this level of quality sometimes comes at a higher cost.

2. Reassurance: Let them know that by choosing your services, they are making a decision that prioritises the success of their project. Reinforce that their choice will lead to a product they can be proud of, reducing their risk and ensuring a positive outcome.

For example, you might say, "I understand that budget is a concern, but I want to ensure you’re completely satisfied with the final product. Our track record speaks for itself, and while our services might not be the cheapest, they guarantee the quality and professionalism that your project deserves."

Offering Concessions

Finally, and only if you have to, in addition to emphasising your value and the risks of cutting corners, consider offering practical concessions to make your services more appealing:

1. Extended Payment Terms: Offer to spread the cost over an extended period. This can ease the immediate financial burden on the client while ensuring you get paid for your work. To be honest most of the big clients I have, take so long to pay anyway that offering them extended terms is still likely to be less time than they usually pay in!

2. Future Project Discounts: Turn the "exposure dollars game" on its head by suggesting a partnership approach. Propose that if they work with you now, you'll consider more favourable pricing on future projects. This shows you are invested in a long-term relationship.

These concessions demonstrate flexibility and a willingness to accommodate the client's needs, while also reinforcing your commitment to providing high-quality service.

Building Long-Term Relationships

Focusing on building long-term relationships rather than just closing a single deal can be beneficial for both parties:

1. Commitment to Client Success: Show that you are invested in the client’s long-term success, not just the immediate project. This can be achieved by offering follow-up services, maintenance packages, or ongoing support.

2. Reliability and Trust: Establish yourself as a reliable partner who delivers consistent quality. This reliability can encourage repeat business and referrals.

It’s All About The Sound

Negotiating with clients who are primarily focused on price can be challenging, but by understanding their perspective by listening, clearly communicating your value, offering flexible solutions, and highlighting the risks of cutting corners, you can steer the conversation towards the benefits of quality audio production. At the end of the day, this is what it’s all about. Make sure they remember that.