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Can You Lower The Rate?

This is a common ask from prospects before they turn into clients.

It tests our mettle because the tendency is to give in.

If not, you may lose the contract totally, which isn’t a bad thing sometimes.

Nevertheless, let's speak for the general masses.

As recruiters, we want to sign contracts. No contracts mean no revenue.

During contract negotiation, recruiters pray for smooth acceptance.

Often to dismay, the common request comes just as quickly “Can you lower the rate?”

Should you give in to this request?

These are three steps I take to assess the situation quickly.

1. Is it a referral? If so, you can consider giving a slightly lower rate as goodwill.

2. Your starting rate matters. Are you already at a lower rate than market benchmark? If so, any further lowering of the rate can affect your sustainability and morale.

3. Are there other adjusted terms the prospect is asking for on top of the rate? If there are, this might not be a good client to work with.

I believe you understand where I’m coming from with these probing questions.

In any contract negotiation, we aim for win-win.

This means it should not be lopsided and if you accede to the request for lower rate, the counter (for balance) is to request for an upside in your favor on another term.

For example, client wants the rate to be lowered. You can accept this and request the payment to be upon candidate’s acceptance date (not start date).

In other words, you bring forward your cashflow by 1 to 3 months which compensates you for the loss in fee amount.

Will this always work? Not necessarily as it depends on the client’s policy but you never know until you ask.

The idea is not to accept without forethought a contract that is lopsided against you.

Your job is not just to deliver the best service for your client, but to keep your business in good shape and that means taking care of your bottom line as the first tier priority.

p.s. Thank you to everyone who DM and booked a coaching call with me in February. The month is wrapping up real quick and you can book a call with me for March if you want to drive past your recruitment hurdles and start earning instead of hoping.

p.p.s. A warm welcome to everyone who subscribed The Solo Recruiter since last week! You are now a part of this community that support one another to achieve greater results in recruitment business. 🎉

Let’s connect on LinkedIn as well!

​About this newsletter: You are receiving this email because you subscribed to my weekly TSR (The Solo Recruiter) newsletter. Every week, you learn the strategies that successful recruiters use to grow their businesses. So you can also do the same and launch your business.