Lowering Your Rates May Hurt Your Business

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Yes, most of the experts are staunchly against the trend of lowering the existing rates to get a work from the client easily. The practice of flexibility in rates may actually create a lot of damage to your business. Do you know how? Please read on...

1. Once you start compromising on your existing rates, to win a client or two, you will be forced to do the very same for others too, and would never be in a position to sell your services in the previous rate.   If you do this continuously your worth gets literally lowered thereby hurting your potential to return back to the former position.  You will find it very difficult to get out of that situation.

2. What if you get your usual rate from one client and paid less from another?  The preference would be obviously for the first one.  This would give you a bad reputation, as a few of your works would go well, where as those which are less paid would go bad.

3. An unwanted compromise in rates would hurt your confidence level, eventually resulting in bad business moves. This compromise would only attract those groups of clients who are interested in bargaining and not on the quality of works. So take time and set your rates properly, based on what you are providing the clients. Once you set the rates make sure that you stick on to it. That doesn’t mean that you should not compromise. But your flexible nature on the rates should not attract bad clientele.

4. A reduced rate and an ever dissatisfied client; it would be extremely frustrating. Once you compromise on the payment, every single issue in the client relation would turn to be a huge deal for you. Often such clients will persuade you to make more compromises and you will soon start disliking the work, the client, as well as the entire things related to it. 

An exception…

There is always an exception. Flexibility in rates is good for people who are new to the industry and don’t know the market trends. They can be a little flexible until they reach a level of financial security.   This will help them to build a strong portfolio and experience, which can turn out to be your biggest potential later on.
If this doesn’t apply to you, better don’t compromise on your rates to get more work. 

If you forced to do compromises continuously you need to check your rates and lower it if needed so that it reaches an acceptable level.  Another option would be to find a new pool of clients.

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