How to Negotiate with Clients: Stop Being a Pushover

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Three weeks ago, I watched a perfectly capable business owner get absolutely steamrolled by a client who was asking for a 40% discount on a project that was already underpriced. The worst part? She said yes. Just... yes. No counter-offer, no explanation of value, no backbone whatsoever.

That's when I realised we've got a serious problem in Australian business. Too many talented professionals are treating negotiation like it's some dark art reserved for used car salesmen and politicians. Well, let me tell you something after 18 years of watching businesses succeed and fail: if you can't negotiate properly with your clients, you're not running a business – you're running a charity.

The Mindset Shift That Changes Everything

Here's the thing most people get wrong about client negotiations: they think it's about winning or losing. That's rubbish. Good negotiation is about finding solutions that work for everyone involved. But – and this is crucial – that doesn't mean you roll over every time someone asks for a discount.

I learned this the hard way back in 2009 when I was running training workshops for corporate clients. Had this one company in Brisbane (won't name names, but they're still around) who kept pushing for "just a small reduction" on every single engagement. Started with 5%, then 10%, then suddenly they wanted me to throw in additional modules for free.

By the end of that relationship, I was barely breaking even. The irony? They respected me less, not more, for being so accommodating. Lost the contract anyway when they found someone who charged more but positioned themselves as premium.

That's when it clicked. Clients don't actually want you to be cheap – they want to feel like they're getting value.

The Australian Way: Direct But Not Rude

We Australians have this unique advantage in negotiations that we don't utilise enough. We're naturally direct without being offensive (most of the time). Americans think we're too blunt, British think we're too casual, but we've got this sweet spot that works brilliantly in business negotiations.

Use it.

When a client asks for a discount, don't immediately start justifying your prices or explaining your overheads. That makes you sound desperate. Instead, try something like: "I understand budget's important. Let's talk about what we can adjust in the scope to meet your numbers."

See what happened there? You acknowledged their concern without agreeing to it. You've shifted the conversation from price to value. This is where most negotiations should live – in the value space, not the price space.

The Three Questions That Save Your Margins

Every time someone asks for a better deal, I ask these three questions. Not necessarily in order, and definitely not like a robot reading a script, but these questions will save your business:

1. "What specifically would need to change for this to work within your budget?"

This forces them to think about trade-offs. Maybe they don't need the premium package. Maybe the timeline can be extended. Maybe they can handle some components in-house. You'd be surprised how often clients haven't actually thought about alternatives.

2. "Help me understand what's driving the budget constraint?"

Sometimes it's genuine financial limitations. Sometimes it's just testing to see if you'll budge. Sometimes they've got approval for X amount and they're trying to get more for their money. Each scenario requires a different response.

3. "If we can't move on price, what other outcomes would make this a win for you?"

Payment terms, additional services, longer partnerships, referrals, case study rights – there are dozens of ways to create value that don't involve cutting your margins to the bone.

I've seen too many businesses focus solely on the dollar figure when there's a whole world of value sitting on the table. Effective negotiation training can help teams understand these nuances, but honestly, half of it comes down to just asking better questions.

When to Walk Away (And Mean It)

This is where most people struggle. They know they should walk away from bad deals, but they never actually do it. Here's my rule: if a client negotiates you down more than 20% from your standard rates without a corresponding reduction in scope, you walk. Every time.

I don't care if it's January and you haven't had a sale in six weeks. I don't care if they're dangling the possibility of future work. Bad clients don't suddenly become good clients just because you gave them a discount.

Remember that Brisbane company I mentioned? Last month they reached out asking if I was available for a large project. My rates have doubled since 2009. Guess what? They said yes without negotiating. Funny how that works.

The Power of Prepared Alternatives

Most people enter negotiations completely unprepared. They know what they want to charge, but they haven't thought through alternatives. That's like going to a restaurant without looking at the menu – you're going to end up with something you don't want.

Before any pricing conversation, I map out at least three different scenarios:

• The full-service option (everything they asked for, premium pricing)
• The core option (essential elements only, reduced pricing)
• The DIY-support option (they do most of the work, I provide guidance)

Having these ready means I never get caught off-guard. Client wants to spend less? Great, here's what that looks like. Client has budget constraints? No worries, let's look at the core option.

This approach has another massive benefit: it positions you as a problem-solver, not a vendor. Vendors compete on price. Problem-solvers compete on value.

The Follow-Up That Seals Deals

Here's something 90% of businesses get wrong: they think negotiation ends when someone says "let me think about it." That's actually when the real work begins.

After any pricing discussion, I send a follow-up email that summarises the conversation and restates the value proposition. Not a pushy sales email – just a professional summary that reminds them why they contacted me in the first place.

"Hi Sarah, great chatting today about your team's communication challenges. Just to recap, we discussed three approaches ranging from $X to $Y depending on the level of support you need. The key outcomes we're targeting are improved customer satisfaction scores and reduced conflict between departments. Happy to answer any questions that come up as you're considering the options."

Simple. Professional. Focused on their outcomes, not my services.

About 60% of the time, this email generates either a yes or additional questions that lead to a yes. The other 40%? They were never going to buy anyway, and that's fine too.

Technology and Remote Negotiations

Since COVID, most negotiations happen over video calls instead of face-to-face meetings. This has changed the game significantly, and not everyone has adapted well.

First rule of video negotiations: turn your camera on. I don't care if you think you look tired or your home office is messy. People buy from people, and they need to see you. That connection matters more than you think.

Second rule: prepare your environment. Good lighting, minimal background distractions, reliable internet. Technical difficulties kill momentum in negotiations faster than almost anything else.

Third rule: use screen sharing strategically. Instead of emailing documents back and forth, pull up proposals or pricing sheets during the call. Walk them through it live. Answer questions in real-time. Professional presentation skills become crucial when your entire interaction happens through a screen.

The human element gets lost in digital communication, so you need to work harder to maintain that connection.

Common Mistakes That Kill Deals

After nearly two decades of watching negotiations succeed and fail, I've seen the same mistakes repeated constantly:

Talking too much. When you make an offer, shut up. The first person to speak after a price is mentioned typically loses ground. Get comfortable with silence.

Negotiating with yourself. "Our standard rate is $X, but I could probably do it for $Y..." No. Stop. You just negotiated against yourself before they even responded.

Getting emotional. Someone pushes back on your pricing and suddenly you're explaining your mortgage and business expenses. They don't care about your overheads – they care about their outcomes.

Forgetting about payment terms. Price isn't everything. A client who pays 50% upfront and the balance within 30 days is worth more than someone who wants to pay everything after completion in 90-day terms.

Not confirming agreements. "So we're good with Option B at $X with a start date of next Monday?" Get verbal confirmation, then follow up in writing. Memory is unreliable, especially when money's involved.

The Confidence Factor

This might be the most important point in this entire article: your confidence in your pricing directly impacts your success rate. Clients can smell uncertainty from a mile away, and it makes them nervous.

If you don't believe your services are worth what you're charging, why should they?

This confidence comes from knowing your market, understanding your value, and having alternatives ready. It comes from tracking your results and being able to quantify the impact you deliver. Developing workplace confidence isn't just about public speaking – it's about knowing your worth and communicating it clearly.

I see too many talented professionals undervalue themselves because they're worried about losing opportunities. Here's the thing: the right opportunities won't disappear because you charge appropriately. The wrong opportunities aren't worth having anyway.

Look, negotiation isn't about manipulation or aggressive tactics. It's about having honest conversations about value and finding solutions that work for everyone involved. But that requires preparation, confidence, and the willingness to walk away from deals that don't make sense.

Australian businesses have this fantastic opportunity to lead with authenticity and directness in negotiations. We don't need to adopt American-style high-pressure tactics or British over-politeness. We can be ourselves – direct, honest, and solution-focused.

The clients worth having will respect that approach. The ones who don't? Well, you probably didn't want to work with them anyway.