Negotiating when your client holds all the cards

How to shift the balance of power

We want to be pitching to The Decision Maker. The Big Cheese. The Boss.

After all, they hold the purse strings. And if we can persuade them to work with us, no procurement team can stop us.

But... when we do get to sit down with the top people, this often means we have to negotiate with someone with decades more experience than us.

And the gap isn't just measured in years. We might be sitting opposite a CFO who is responsible for hundreds of millions of pounds, or a CEO who commands a small empire of staff.

So when it comes to negotiation, it can feel like the balance of power is completely in the client's favour.

This is one reason why recruiters get pushed down on price so much when trying to win new business.

But the client doesn't hold all the cards when we're talking recruitment. Here are three ways to tip the balance back in your favour.

1. Avoid being “a”

I speak to lots of recruitment leaders who think that, at the end of the day, all recruiters do pretty much the same thing. In other words, we’re a commodity. 

And if our clients think they can get the same service from another agency then they have the upper hand when it comes to negotiating the fee. After all, if you don't drop your price then someone else will - and your client gets the same outcome.

It's my strong belief that every recruitment agency is different. But you need to find your point of difference - and be able to communicate it to your clients - if you want to change the balance of power.

You need your client to know that you, and only you, are the right recruiter for them. This could be your niche, your technology, or your ability to understand their unique challenges.

Whatever it is, you need to make sure your client realised that you aren't just a recruiter; you're the recruiter for this role.

2. Be the expert

Eating at nice restaurants does not make me a fantastic chef. Your client may have more experience in their business, but experience does not equal expertise.

And the problem you're here to solve is how to recruit their next great hire. This is where you're the expert, and the CEO in front of you is merely dining at the restaurant with your name above the door.

Be confident in your expertise where it matters. Back this up with data and testimonials, and your client will realise that they can't do this without you.

3. Close slowly

It isn’t always easy to hold back your instinct to close a deal, but be patient. You need to get to the point where the client says, "I want to work with you". 

If you go too early then you're just asking your client if they would possibly consider granting you the honour of allowing you to - pretty please - work on their role.

Instead, you need to take your time and create a powerful demonstration of the value you bring to the table. It's almost impossible to show what it's like to work with you if you're closing a deal within 30 minutes - all you've done is sell - so slow things down and give your client a chance to really understand what you're offering.

This might involve consulting them on previous hiring challenges they've faced, sharing recent stories from the market, or even helping them to get their colleagues to agree on the objectives for their new recruitment drive.

Then - and only then - are you in a position of power to dictate your terms.

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Follow these steps and when it comes to negotiating with decision makers you'll see the balance of power start to move in your favour.

If you're looking to review how you present your value to your clients - especially decision makers - then simply reply to this email and I will explain how I can help.

Jon

P.S. It's important to get your negotiations right because they define your fees.

But more than that, they set the tone for the whole relationship. You don't want to present yourself as a subservient supplier to be ordered around; you want to show that you're an expert who is confident in what you do.

If you're looking to review how you present your value to your clients - especially decision makers - then simply reply to this email and I will explain how I can help.