Enter discount code here
You're *telling* your clients to negotiate with you
I’ve filled my virtual basket, I’ve clicked checkout, and I’m just about to pay when I see something that makes me put my credit card down again: ‘Enter discount code here’.
I don’t have a discount code. But now I know there might be one, and I’m not going to be the sucker paying full price when I don’t have to. I stop shopping and start googling for discount codes.
Way back when, coupons were a smart way to win cost-driven customers without upsetting more profitable markets. Savvy shoppers would have to buy the right newspaper, turn to the back pages, cut out their money-off coupons and take them to the shop before they expired.
That level of effort for a small saving didn’t make sense for affluent customers, so a simple newspaper advert became a highly targeted pricing strategy.
But as technology has improved, the simple discount code has become less and less effective. Everyone can see the discount code box, and many more people can spare a few seconds out of their day to check if they can save some money.
For me, the problem is the discount code box that every customer sees - just as they’re about to press the ‘buy’ button. We have the same issue across the recruitment industry - and it’s telling our clients to push us down on price.
Our problem is not a button, but a phrase. The wording changes from recruiter to recruiter, but here’s the most common form:
“Our standard price is…”
Four small words, and yet it’s as if you’ve put a banner up that says ‘ASK ME FOR A DISCOUNT TODAY!’
Much like me at the online checkout page, your clients don’t want to be the sucker that pays ‘standard’ price. Clearly there’s a better deal to be had, and they don’t need to be told twice - they start negotiating.
You’ve spent all that time, money and effort getting in front of your ideal client, and nailed your pitch to put yourself in pole position for a big assignment at the rate you want… and then in one breath it’s gone.
First of all, the big fee has gone. Remember, dropping your rate from 20% to 15% means you lose a quarter of your revenue.
Second, your premium positioning is down the drain. Your client thought they could see some of the value you delivered, but now all they can think about is how quickly you opened the door to a lower fee. If you don’t value your own service, they won’t.
Quick fix vs proper fix
So we’ve got a gaping hole in our value fence. The quick fix is to tell everyone in your team to stop saying “our standard price”. But that’s just patched one hole. And there’s a lot of fence.
Your problem is not the word, but the mindset behind it. When recruiters are confident in their value, they use words that reflect their confidence. When confidence is low, it shows in the language you use.
If you want to know what the language you use says about you, just reply with your website address - I'll analyse your value proposition and send you a personalised Value Review video (from me, not AI).
Jon
P.S. I caught up with an agency owner this week who put his prices up this year, and had almost no pushback from his clients. In fact, his clients are picking up on his confidence and are less likely to negotiate with him on price.
If you want to know what the language you use says about you, just reply with your website address - I'll analyse your value proposition and send you a personalised Value Review video (from me, not AI).