Don’t Drop Your Fees

We’ve all been there. You’re chasing a vacancy and you’ve built up a really good relationship with the recruiting manager. You’ve talked to them over the telephone; you’ve visited them in person. You’ve made the effort to understand their business, their needs and what they need from a candidate. You’ve dealt with them in an open, honest and trustworthy way, and you’ve got a real connection with them. Everything is looking good for getting the vacancy and then comes the final issue: the fee.

You’ve come this far and you don’t want to lose the vacancy. So when it’s time to discuss your fee they’ve made it clear that they want it as cheap as possible.

You don’t give them the full fee, or even a slight discount. No, you slash your fee really low in attempt to get the vacancy. You’ve just made a big mistake…

Heavy discounting sets a bad precedent

The best recruiters know that being a top biller is all about relationships. Every new client should be thought of as the first step in a very fruitful and profitable journey. Giving them a heavy discount just to get their business means that they are going to want that fee forever more.

Clients who want heavy discounts expect far more than they’re paying for

Any recruiter who has been in the industry for even a short amount of time knows that there are clients out there that can be more trouble than they’re worth. Does this ring a bell?

The one thing that many of these clients have in common will be that they will have negotiated a low fee. It happens in all industries. Some people see reduction in fees as a sign of weakness and will attempt to exploit this fact.

A heavy discount can lead to resentment

The strange thing is that, you can often find yourself giving your poorest paying clients far more attention than you’re able to give the really good, profitable clients. This can cause some resentment, mainly from you towards the demanding client! Don’t forget as well that it can be a small world, and if your clients ever talk to each other and there’s a huge disparity of fees, then there could be trouble on the horizon…

Discounting can lose you clients

Imagine if you were buying a second hand car. Having completed your research, you’re aware of the standard of car you’ll be able to afford for your money. Then you see a car; let’s say it’s a Mercedes, for an unbelievable price, 75% cheaper than it should be. Would you buy it? You wouldn’t would you?

There must be something wrong with it; nothing is discounted that much without a catch. The same goes for business. You’ll add doubt into a client’s mind if you start acting desperate and slashing your fees. Stand your ground with your fee and you’ll win more clients than you lose.

We’re not saying that your fee should always be rigid and that you shouldn’t give some clients a discount. But don’t roll over before you’ve even quoted your full fee. Anybody can get vacancies by offering rock bottom prices. They’ll work for little or no reward though. If you’re a good recruiter, you should be proud of your fees. They’re set at that rate for a reason, and if you stick to them (or as near as you can), you’ll win more and better clients and reap the rewards financially.

Till next time,

Cheryl