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Concessions and Counter-Concessions

3 December 2009 Comments

concession
I’m a copywriter, author, writer, ghostwriter. I get PAID to write. Being a soft-touch and liking to see people do well, I often offer a discount or even do small jobs for free. I am always shocked at how the “free” jobs or discounted jobs are treated as “not worthy” or respected as much as the full fee jobs. It pissed me off. I did a friend or even a stranger a favor after hearing their hard-luck story and I was taken for granted or even asked to write for free or less AGAIN!!

I’ve noticed that people DON’T value things you give them for free. They’ll take it, but the next time around they resent you trying to charge them. You’ve trained them that they can get something from you for free. People, as a rule DO NOT respect you for giving them free stuff. It’s very, very rare for someone you’ve done a lot of favors for to actually start paying you for the work. The person you offer something free to who resists and wants to pay or trade you for your time RESPECTS you and YOUR TIME and talents. They are GOLDEN. Hang on to them. They appreciate you!!

So, today I got a great post from Michael Fortin, also a successful copywriter. He addressed this issue - which is common to anyone in the service industry, but more so to anyone in a creative field. He said:

“The cus­tomers who are will­ing to pay you the least will always demand the most.”

That’s true. What else is true is his explanation about “counter-concessions.” He says:

“Never make a con­ces­sion, even if it’s as sim­ple as a dis­count, with­out ask­ing for one in exchange. Call it a “counter-​​concession.” This is noth­ing new. Most of the top nego­ti­at­ing experts out there, like Roger Daw­son and Herb Cohen for instance, teach this.

This is an impor­tant con­cept to grasp, even if they’re friends of yours: the per­ceived value of the ser­vice depre­ci­ates imme­di­ately after the ser­vice is rendered.

Why is this impor­tant? For one, if the copy doesn’t do as well as expected, who cares if you did it for free? (Your client cer­tainly won’t.) But it goes fur­ther than that.

If all you had were rights to the copy and it did per­form well, and if any­thing should hap­pen between you two, would you ever con­sider stop­ping your friend from using your copy? Even to the point of send­ing them a cease and desist, or tak­ing legal action?

Friend­ships notwith­stand­ing, would you be will­ing to work twice as hard try­ing to sat­isfy an insa­tiable client when you could be work­ing on other, bet­ter, pay­ing clients?

It’s some­thing to think about.

Ask­ing for a larger con­ces­sion before work starts helps to stop the poten­tial grinding-​​away process after the copy is deliv­ered. If they try, then each time they ask for a con­ces­sion you in turn ask for one. Always ask for a counter-​​concession. Always.

Plus, by ask­ing for a sub­stan­tial con­ces­sion in the begin­ning, you also increase the per­cep­tion that each counter-​​concession you will ask with each one they request from you will be just as large, which will force them to think twice before nib­bling for more.

If they are demand­ing (and cheap clients usu­ally are), ask yourself:

“Am I pre­pared to do two to three times the work, deal with a high-​​maintenance client, and divert my atten­tion away from other, pay­ing clients (let alone away from mar­ket­ing my ser­vices in order to find bet­ter clients), for a mere addi­tion to my résumé?”

On the other hand, mak­ing a bal­anced con­ces­sion — giv­ing a dis­count instead of doing it for free, for exam­ple — will increase your per­ceived worth. And a good way to do this is to raise your fees. Rais­ing your prices is not just about increas­ing per­ceived value.

By rais­ing your fees and giv­ing a more sub­stan­tial con­ces­sion will allow you to ask for a larger con­ces­sion from them in return. So ask for some­thing upfront, even if it’s little.

Say: “I under­stand this may be out of your bud­get range. In exchange for a spe­cial con­sid­er­a­tion (a dis­count), may I sug­gest (what­ever con­ces­sion you want them to make).”

Even bet­ter, let them make their counter-​​concession for you. They might sur­prise you, as it might be a lot more than you antic­i­pated. Say some­thing like: “In exchange, what can you do for me?” Then let them tell you what they’re pre­pared to offer you in return.

(Inci­den­tally, doing it this way also gives you a pretty good idea of what they think of you, and how much value they place in your ser­vices and your copy.)

Ulti­mately, your copy no longer becomes the object of the trade­off. Your con­sid­er­a­tion — e.g., a dis­count or what­ever con­ces­sion you’re mak­ing — is. Apples to apples.

Also, don’t limit your­self to a dis­count. You can offer a bonus (such as an extra revi­sion, free of charge), an extra con­sul­ta­tion, an extended guar­an­tee, an add-​​on ser­vice (such as writ­ing the opt-​​in page copy, for­mat­ting, or even test­ing the copy), and so on.

That’s why the key is to break­down and denom­i­nate each com­po­nent of your ser­vice — from research to revi­sions. In other words, give each com­po­nent a price tag. Sure, give a flat rate. But break the project down into indi­vid­ual parts, with indi­vid­ual values.

Not only will each ele­ment have a price tag, which can be used in the nego­ti­a­tion, but also it will help to jus­tify your higher fees. It will seem less “pulled out of thin air.”

When a prospect sees the value behind every indi­vid­ual com­po­nent, they also get a bet­ter appre­ci­a­tion of what you do, how you price your work, and how much they are truly get­ting if you were to con­cede on any one of those elements.”

Excellent article. Please stop by and read the entire thing. It’s not just great for creatives or small businesses who must deal with customers wanting something for free or a discount. It’s for dealing with friends who are constantly wanting/needing something. If you’re co-dependent, or struggle with boundaries, it’s worth reading and thinking about. I’m definitely a recovering co-dependent. I tend to give and give a lot. I give to the point it hurts ME. I don’t get a life or have a life because I’m caring and doing for others before caring for me.

That might sound selfish, but it’s not. Remember the old adage about putting on your oxygen mask BEFORE putting on your child’s mask if a plane loses pressure? The idea is that you can’t take care of your child if you pass out from no oxygen because you tended to them first. With your oxygen mask on you have the resources (air) to do MORE for your child and possibly others. But you have to take care of yourself FIRST.

I’m working on taking care of myself first right now. And that involves saying “No,” to some people and to some clients and to many friends. After reading Michael’s post today I realized there are other options - and that counter-concessions can be not only a great way to determine if (1) a friend, client or co-worker is willing to reciprocate because they value the relationship and just don’t have the money/time and truly want and need your services; or (2) they really just DON’T WANT to pay/help/trade/work with you and are only intent on using or manipulating you because they think they can (they have in the past).

Counter-concessions are a way of eliminating dead-beat clients and friends and of helping you decide what your boundaries and needs are. It’s healthy. Very healthy. Not only do you get the value you deserve (through barter or concessions), but the other party gets and respects what they want/need from you. It strengthens an honest relationship to do this. Very appealing.

If you’re not a business person, apply this to your LIFE. If a friend always wants you babysitting their kids, watching their pets, picking up stuff at the grocery store they forgot, or volunteering for their cause or organization, try counter-concessions. Like, “I’d love to sit at your bake sale table all weekend. But I need help at my road race in two weeks. I’ll do your event if you’ll do mine.” I’m not saying counter cessions are needed on everything - but they are needed if you’re feeling taken for granted, abused or used by someone who is always asking and never giving.

Even if you don’t exchange hard money, there’s “emotional currency” in effect in all relationships. That emotional currency consists of helping each other, supporting someone, and being a friend. If someone has done a lot for you, their account may be substantial - so when they call and ask for a favor, you’re glad for the chance to reciprocate. It’s the balance and dance of relationships - the give and take of friendship. It’s how we keep from resenting, or even hating someone we care about - boundaries and counter-concessions - they’re golden.

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