Offering Discounted Fees

I've often found it helpful to position prices as a savings. For example: "My normal rate is $450 per hour, but because you were referred by Mark, I'll do it for you for $400." People always like a discount or special price. And it's easy to find a reason to justify the special price. For example:

  • Because you're a previous customer
  • Because you're planning to buy more than 10 hours
  • Because you're a member of our church
  • Because I may need to call on your services in the future
  • Because you're in an industry that's been especially hard-hit
This letter gives no reason at all, simply suggests the discount, which worked well because we got the assignment. Notice, also, that the letter gets right off pricing and goes to a friendship topic, a professional trade association called CHAHRM. I often treat pricing as though it's an afterthought. 

May 19, 20-

Mark L. Black
Director, Human Resources
Northern Colorado Health Systems
4500 South Long's Peak Avenue
Ft. Collins, CO  80524

Dear Mark,

It was a great pleasure seeing you again yesterday.

I spoke with Clyde Monahan about the pricing you and he had discussed. As I told you, our normal price for clerical level staff is 10% of salary, which is $2,000 for a $20,000 person.

Clyde suggested we give you and Northern Colorado Health Systems a special price of $1500 per person for clerical staff. Our fee for all other outplacement will be 10% of annual salary.

If you have any questions about this, Mark, please give me a call.

In the meantime, I'd like to get more heavily involved in CHAHRM. I've written a monthly career column for the Colorado Human Resources Association's Advisor for the last five years. I could contribute something to the CHAHRM newsletter if you're interested.

With best wishes,

William S. Frank
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