How to Negotiate with Clients: The Blunt Truth About Getting What You're Worth

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Three years ago, I watched a perfectly competent electrician practically beg a client to accept his quote. This bloke had twenty years experience, stellar work quality, and was charging 30% below market rate. Yet there he was, apologising for his prices like he'd just asked to borrow their firstborn.

That moment crystallised something I'd been thinking about for ages in this industry.

Most Australian business owners are absolutely shocking at negotiation. And I'm not talking about the flashy corporate types in their Armani suits – they've got entire departments for that stuff. I'm talking about the real backbone of our economy: tradies, consultants, small business owners, and service providers who'd rather eat glass than ask for what they're actually worth.

Here's what nobody wants to admit: negotiation isn't about being aggressive or manipulative. It's about being professional enough to value your own expertise.

The Mindset Shift That Changes Everything

The first thing you need to understand is that clients expect you to negotiate. They budget for it. When someone quotes you their first price, they're usually leaving room for movement. If you immediately accept whatever they offer, you're not being nice – you're being naive.

I learnt this the hard way about fifteen years back when I was doing training consultancy for a mining company in Perth. They offered me what seemed like a decent day rate, and I jumped on it faster than a kangaroo in traffic. Six months later, I discovered they were paying the other consultant – who had less experience than me – nearly double what I was getting.

The kicker? When I asked their procurement manager about it, he said, "Well, you seemed happy with the rate you quoted."

That stung. But it taught me something crucial about business negotiation techniques that's served me well ever since.

Start with Research, Not Assumptions

Before you walk into any negotiation, you need to know three things: what you're worth, what they can afford, and what similar providers are charging. Too many people skip this step and wonder why they get walked all over.

I always tell my clients to spend at least two hours researching before any significant negotiation. Check industry rates, look at competitors' pricing, and try to understand the client's budget constraints. Knowledge is leverage, and leverage is everything in negotiation.

The mining industry taught me this in spades. These companies have massive budgets, but they also have strict procurement processes. Understanding both sides of that equation meant I could position my proposals in ways that made sense to their systems whilst ensuring I got paid properly.

The Power of Strategic Silence

Here's something that'll make you uncomfortable: learn to shut up after you state your price.

Seriously. Quote your rate, then zip it. The first person to speak loses. This isn't some macho power play – it's basic psychology. When you immediately start justifying your prices or offering discounts before they've even responded, you're telling them your quote was too high.

I've seen consultants talk themselves out of thousands of dollars because they couldn't handle thirty seconds of silence.

Last month, I quoted a corporate communication training program to a Brisbane-based logistics company. After stating my fee, the procurement manager went quiet for what felt like an eternity (probably twenty seconds). My brain started screaming, "Say something! Offer a discount! Apologise!"

Instead, I waited.

He eventually said, "That seems reasonable. When can we start?"

The Australian Disadvantage

We've got a cultural problem in Australia when it comes to talking about money. We're raised to be modest, fair dinkum, and not to "get above ourselves." These are generally good qualities, but they're absolute killers in business negotiations.

The tall poppy syndrome is real, and it's costing us money.

I see this constantly in my training work. Brilliant tradies who can solve complex problems that save clients thousands of dollars, yet they quote jobs like they're asking for charity. Service providers who deliver exceptional results but feel guilty charging premium rates.

Meanwhile, their overseas competitors waltz in with confidence, quote 40% higher, and win the contract because they present themselves as premium providers.

Value-Based Pricing Beats Hourly Rates

Stop selling your time. Start selling your outcomes.

This shift alone transformed my business about eight years ago. Instead of saying, "My day rate is X," I started saying, "The investment for this transformation is Y." The language matters, but the thinking behind it matters more.

When you price based on hours, you're essentially telling clients that all hours are equal. But they're not. An hour of me solving a critical workplace communication issue is worth more than an hour of me filling out forms. Yet hourly pricing treats them the same.

Value-based pricing lets you capture the true worth of your expertise. It also aligns your interests with your client's – you both want the best possible outcome, achieved as efficiently as possible.

The Concession Strategy

When you do need to make concessions (and sometimes you will), do it strategically. Never give something away without getting something in return.

If they want a discount, ask for:

• Faster payment terms
• A larger scope of work
• A testimonial or case study rights
• Introduction to other potential clients
• Flexibility in scheduling

This isn't about being difficult. It's about maintaining the perception of value whilst finding mutually beneficial arrangements.

I once had a client in Melbourne push hard for a 20% discount on a leadership development program. Instead of just cutting my fee, I offered the discount in exchange for conducting the training at their offices (saving me venue costs) and allowing me to film testimonials for my marketing materials.

Everyone won.

Reading the Room (and the Budget)

Not all negotiations are about squeezing every dollar. Sometimes the smart play is to build long-term relationships, especially with clients who have ongoing needs.

I've got a client in Adelaide who I've been working with for five years. They're not my highest-paying client, but they provide steady work, pay on time, and refer other businesses to me. That relationship is worth more than any single high-fee project.

The key is recognising when you're dealing with a price-sensitive client who could become a valuable long-term partner versus someone who's just trying to get cheap work done.

Technology Changes Everything

Modern negotiation happens across multiple channels – email, phone, video calls, and face-to-face meetings. Each medium has its strengths and weaknesses.

Email is great for documenting agreements but terrible for reading emotional responses. Phone calls let you hear tone but miss body language. Video calls are convenient but can feel impersonal for significant negotiations.

For major deals, I still prefer face-to-face meetings when possible. There's something about sharing physical space that builds trust and makes it harder for either party to be unreasonable.

That said, I've closed some of my biggest deals over video calls with clients in other states. The key is matching the medium to the importance and complexity of the negotiation.

Common Mistakes That Kill Deals

After nearly two decades in business, I've seen the same mistakes repeatedly:

Apologising for your prices. Your expertise has value. Own it.

Accepting the first offer. At least explore whether there's room for movement.

Negotiating when you're desperate. Desperation shows, and it weakens your position significantly.

Focusing only on price. Sometimes the real value is in terms, timing, or scope adjustments.

Not knowing when to walk away. Some deals aren't worth doing, even if you need the money.

The biggest mistake, though, is treating negotiation as a battle to be won rather than a problem to be solved collaboratively.

The Follow-Up That Seals the Deal

Whatever you agree to, document it immediately. Send a follow-up email summarising the key points before anyone has time to second-guess the arrangement.

I learnt this lesson the expensive way when a verbal agreement for a training contract somehow became "misunderstood" a week later. Now I send confirmation emails within hours of any negotiation, and I make sure both parties acknowledge the details before moving forward.

When to Bring in Professional Help

Some negotiations are too important or complex to handle alone. Major contracts, ongoing partnerships, or deals involving significant legal obligations might warrant professional assistance.

I'm not suggesting you need a lawyer for every client conversation, but knowing when you're out of your depth is crucial. The cost of professional advice is usually much less than the cost of a poorly negotiated agreement.

The Reality Check

Here's the thing most negotiation books won't tell you: sometimes you'll stuff it up completely. You'll quote too high and lose a job you really wanted. Or you'll quote too low and spend months regretting it.

That's part of business.

The goal isn't to win every negotiation. It's to get better at understanding value, communicating professionally, and building mutually beneficial relationships. Every mistake teaches you something about your market, your clients, or yourself.

After fifteen years of making these mistakes, I can tell you that the lessons stick better than any theory you'll read in a textbook.

Most importantly, remember that negotiation skills improve with practice. Start with smaller deals where the stakes are lower, and work your way up to more significant agreements as your confidence builds.

The electrician I mentioned at the beginning? I ran into him last year at a trade expo in Sydney. He'd completely transformed his approach to pricing and negotiation. He told me his revenue had doubled in three years, not because he was working more hours, but because he'd learned to value his expertise appropriately.

That transformation is available to every business owner in Australia. It just requires the courage to have honest conversations about value and the persistence to keep improving your negotiation skills.

Your expertise is worth more than you think. The question is: are you brave enough to ask for it?