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Sep 06

E537: Buying A Job To Win A Client

Dropping prices to win over a new client can be a good strategy.

 

  1. Buying a job is a common strategy
    1. We target a client and give them a low price in order to start a relationship
    2. We get in with them in hopes of future work at our normal pricing
    3. Does it really work?
  2. My successes and failures
    1. A developer – we did a job at their typical pricing in hopes of showing them they should pay us more – it worked
    2. An industrial plant – took a low price job in order to get in and later found that everything was based on lowest price regardless of value provided
    3. A city – took a project to get in and put the wrong team in place, didn’t provide value – never got shortlisted again
  3. This strategy can work but takes some careful research and understanding
    1. Know the customer – are they right for you?
    2. Know the projects – does value matter over price?
    3. Make sure you have value to add – if not they will never pay more for your services on the next project
      1. This is the key part – you must be bale to prove the values you offer in order to get the pricing you want in the future
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