“Negotiating tips that help you keep your profits and lower your price.”

Today we talk about negotiating with potential clients to lower your price without giving up profits or taking on adverse risk.


We often get requests from potential clients to lower our price. How can we negotiate with them without while protecting our profits.


Protecting our profits on our projects is the number one objective of our business. If a potential client does not respect that we are in business to make a profit then that client might need to be fired.


  1. Negotiation
    1. Defined as “Try to reach an agreement of compromise by discussion – key word is compromise
    2. Both parties most be involved and both give something to achieve the outcome
    3. Make the client come to the table too
  2. Preparation
    1. Good negotiation starts with an accurate estimate
    2. List contingency separate not buried in the cost estimate
    3. Clearly state your desired profit – not inflated to give back – we never lower profit %
  3. Protect profits while lowering prices
    1. Provide client with some potential solutions to get project within budget
    2. Common areas client can contribute – quick pay / pay materials upfront / schedule / mobilization / scope
    3. Last item on the table – share contingency at the end of the project

Follow these negotiating tips to keep your profits in tact, build a relationship with your client and still win the work.

Take-Action Items:

  1. Set up a negotiating plan – template

  2. Make the client give something too

  3. Never cut profits – don’t over inflate in the beginning either – we are not used car salesmen


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