We’ve all been there. A client asks for the price, and you don’t know what to demand, or you have offered a price, but they’re nagging about it. It’s tough to negotiate sometimes when you are running your own design business. Well, it’s all about striking a balance between your work value and client expectations. In this article, I’ll try to share my experience with the negotiation process and offer strategies that can help you get a fair deal.

Understand Your Value

Before you enter negotiation, it’s crucial to understand the value of your work. You are the first one who can properly judge your work. This means considering your experience, portfolio, complexity of the project, and the value it brings to your client. Research what other designers are offering at their price range and find out what unique you can offer in your delivery. Remember, you are not just selling a design or a poster. You are providing a solution to a business or an organization. 

Clear Communication

While discussing the project with your client, be explicit about what your services include, any deliverables, timelines, revisions, resources required, or anything else you feel is needed. This clarity helps prevent any sort of misunderstandings and sets the stage for a transparent negotiation. 

Pricing Strategies

Setting your price will require you to select the mode of work first. In general, there are three modes from which you can select. 

1. Hourly: This is the best option for works that have undefined scopes or you can’t define how many hours it may take before you finish working. It is recommended to keep a time tracker if you select this mode. 
2. Project-based: This is suitable when you and your client are clear about the end deliveries. Like two cover photos and one presentation document. There are no other deliverables required, and once the work is done, the contract is done as well. 
3. Retainer: Although this is not recommended when you are still young or have very little experience or whatsoever. This is efficient when the client requires the service on a regular basis, and you can sign in for a weekly or monthly contract.

Now choose the mode that best suits the project and your working style, but be open to discussing alternatives if it benefits both parties. To set the pricing, do market research and see what other designers are pricing. Offer competitive pricing that’ll give your client a good value for your work and also meet you financially.

Negotiating Rates

It is obvious that you and your client won’t agree on the first price that is offered. There’ll be some mix and matches. To prove your value to the client, highlight your previous successes and how your work will benefit the client. It is important that you aim to present your fees as an investment rather than a cost to the client. If a client’s budget is lower than your standard rate, negotiate by adjusting the project scope rather than simply lowering your price. Don’t simply lower your price just because the client wants you to. This approach ensures you’re still compensated fairly for the work you agree to do. 

Negotiating Tactics

While you are negotiating your price, it is helpful to follow some tactics that might help you win the deal. Here are some suggestions from my experience –

• Listen More Than You Speak: Understand the client’s needs and concerns to offer solutions that meet their objectives while ensuring you’re fairly compensated. Pay close attention to what the client is saying. Understanding their needs and concerns allows you to offer solutions that are beneficial for both parties.

• Know Your Bottom Line: Before negotiations begin, know the lowest rate or least favorable terms you’re willing to accept. This clarity helps in making decisions during the negotiation process.

• Prepare for Objections: Anticipate potential objections from clients and prepare your responses. This could involve explaining the rationale behind your pricing or the value you bring to the project.

• Use Positive Language: Frame your negotiations in positive terms. For example, instead of saying “I can’t do it for that price,” try “Here’s what I can offer within your budget.”

• Be Willing to Walk Away: Not all projects are worth your time, especially if the terms undermine your value. It’s okay to say no.

Negotiating Tactics for New Designers

What if you are new in the marketplace & don’t have much experience working on big projects? Fear not! I have some tips for you too! 

• Build Your Portfolio: When you’re new, your portfolio is a key tool in negotiations. Consider taking on diverse projects (even at a lower rate initially) to build a portfolio that showcases your range and skills.

• Offer Package Deals: Instead of negotiating single projects, consider offering package deals that provide more value to the client while securing more work for yourself.

• Seek Non-Monetary Benefits: If a higher rate seems out of reach, negotiate for non-monetary benefits like a longer deadline, a testimonial, referrals, or the freedom to use the project in your portfolio.

• Be Transparent About Your Experience: Honesty about being new to the market can be an asset. Some clients appreciate the fresh perspective and enthusiasm you bring. Offer them reassurance by highlighting your commitment to quality and client satisfaction.

• Leverage Testimonials: Gather testimonials from any past clients or colleagues to improve your credibility. Positive feedback from others can be persuasive during negotiations.

• Start with Small Projects: Smaller projects can be less risky for clients and give you the chance to prove your worth. Performing well on these projects can lead to better negotiating positions in the future.

• Continuous Learning: Show clients that you’re committed to your professional development by taking courses and staying updated on industry trends. This demonstrates your dedication to delivering high-quality work.

Whether you’re a seasoned graphic designer or new to the field, effective negotiation is key to a successful career. By understanding your value, preparing thoroughly, and employing strategic negotiation tactics, you can secure fair compensation and favorable terms for your work. Remember, negotiation is a skill that improves with practice, so approach each opportunity as a learning experience.