Negotiation Skills for Business, Salary and Debt

Determine Your Rate And Negotiate Carefully With Unreasonable Clients

Consultants who offer executive assistant or computer services on a virtual basis must know their value and be prepared to gauge their billable rate to meet the circumstances.

At some point everyone encounters potential clients who expect professional work at rates that are less than appropriate. For example, a posting advertises an opportunity that matches your highly polished skill set. After making contact with the client you find they don't want to pay a reasonable fee for the services they expect.

While these types of engagements might help to build a newcomer's portfolio or pay some bills when money is tight, a successful virtual service provider knows their value and refuses to be exploited. Make sure clients understands your training, background and areas of expertise. Then, set expectations for services by pricing in accordance with your qualifications and skills.

Be prepared to be flexible, yet firm in your compensation requirements.

Determine your base rate in advance of client discussions. Scratch it out on paper or create a spreadsheet. Take into account the fixed overhead and variable costs to legally operate your business

Determine your flex-rates for times you might be willing to work for slightly less or feel the need to demand more pay.

Calculate the value added for meeting tight time constraints, the demanding nature of the client or the complexity of the project

Take the time to project costs not otherwise considered in your base rate (long distance, printing, etc.)

A pre-determined rate scale helps you respond calmly and logically to stressful situations, so you can advert potential disasters.

Last year I turned down what seemed on paper to be an ideal "personal assistant" opportunity. The ad described duties such as checking email and preparing responses on the client's behalf. Work assignments would be completed by phone and fax for a client who did not want to use a computer.

The job matched my skill set, but I chose to pass because:

1. The offered rate was 50% less than the low end of my base rate range.

2. The client expected me to own and pay for the operation of a fax machine, but was unwilling to pay for its purchase or operation.

3. The client expected a commitment to work for him part-time, even though hours were going to be determined by him each week

4. The client's refusal to even consider using a computer was destined to create confusion and conflict over what I prepared on his behalf

Regrettably, I realized this potential client was a fussy, technology laggard who wanted a very experienced, highly reliable personal assistant who was agreeable to an entry level rate.

Know when to "pass" on a client so you can continue to market to more viable prospects. Try to negotiate a better rate with clients by matching their expectations with your level of service. Keep an eye out for performance bonuses or other types of perks to balance out discounted rates for good clients.

Elisa Shostak is the founder of Compass Rose Strategic Consulting LLC, an advisory service and secondary research firm based in Seattle, Washington.

This is the first in a series of articles about negotiating with clients and managing a management consulting practice.

Elisa can be contacted through her website: http://www.compassrosellc.com or blog http://www.compassrosestrategic.com

MORE ARTICLES:

Resource Website Directory
A helpful directory of websites and other online resources.

How To Negotiate With Your Outsourcing Service Providers
In the current economic environment, businesses are trying to cut costs from all possible ends. Strict IT budgets and limited resources are making it even more difficult to get things done but still it is important to adhere to the same levels of service and functionality. Keeping the quality of deliverables the same in spite of the reduced budget makes it important to extract the best value for every penny that is spend.

Why you should use a licensed attorney to negotiate your loan modification
Part 1 (Excerpt)

Negotiate Better Terms With Your Credit Card Issuer
Credit card holders may be having a hard time keeping up with the constantly changing rules within the industry Strategies that have long be considered fool proof when managing your credit card account are now no longer a sure thing

A succinct guide on how to negotiate the best quotes for annuities
Taking some time just to comprehend how the pension annuity system works could be worth huge amounts on money later in life.

Author Releases New E-Book Entitled Negotiate: Lose Your Fear of "No"
New e-book is designed to help people overcome their fear of rejection when it comes to negotiating. It's about reversing the process of paying too much money for an item and putting money back in your pocket. If you could overcome the fears of the word "No", accept it for what it really means (No) and nothing else, then: One Can Negotiate.

How to Negotiate Your Salary
The process of job hunting is full of not just excitement but also anxiety. Preparing resume, applying for posts, getting ready for interviews, facing the interviewer, waiting for responses and making a decision gets tiring, to say the least. And once you get a job offer, what is most difficult is negotiating the salary part. Salary and compensation is that part of the job negotiation that can effectively make or break a deal. It is a very important aspect of finalizing a job opportunity.

How to Negotiate Salary - Get What You're Worth
Your dream employer is interested in hiring you and all that lies in the way now is to negotiate your salary You want to be sure that you get what you are worth, but at the same time you don't want to lose this huge job opportunity

When & How To Negotiate The Deal
If you opt to shop for a car on your own, remember this: you are the consumer and have a right to walk away from a deal at any time. You should do your research and have several options in mind to avoid being pigeonholed into making a costly decision.

Know What You Can Negotiate In Your New Car Loan
Even with today's economy somersaulting in many directions, getting a new car loan is still on some people's list of things to do this year. It may be for necessity, a growing family, or a son or daughter off to college, but whatever the reason, the opportunity to obtain a fair loan is more on your side, the consumer, than the financial institutions that want your business.

A short guide on how you should negotiate the highest annuity rates
Taking a step back and teaching yourself how the pension annuities system operates might be worth a tidy sum in the near future.

Negotiation Skills Tips: How To Get The Most From a Job Interview
There are few more stressful events in your career than interviewing for a new position. It makes little difference whether you are interviewing for another position with more responsibility within your present organisation or if you are exploring new opportunities - the stakes are high.

3 Simple Steps You Can Take Today To Negotiate Lower Debt Payments
You don't have to be a professional to understand how to negotiate your debt and lower your payments to your creditors Follow these steps now

How to Negotiate Your Business Debt
No businessperson ever wants to be forced to admit defeat and have to declare bankruptcy Yet in the current economic climate, more and more business owners are having to do just that

Tips To Negotiate Like A Pro
Most investors will agree, negotiating a good deal is the most difficult part of real estate investing Very rarely will you hear an investor say that he got everything he wanted