Negotiating Contract Staffing: Overcoming the Race to the Bottom
As my colleague Jonathan Tierney says, “Sometimes selling contract staffing is a race to the bottom.” Learning how to negotiate staffing prices is crucial because many outside the staffing industry see contract staffing as a commodity. However, they often don’t realize that paying a bit more can actually save money in the long run. Therefore, here are some sales strategies to help you negotiate better prices while delivering stronger results for your clients.
Start by Letting the Customer Name Their Price
First, experts recommend a strategy that combines price anchoring with upward negotiation. To begin, let the customer name their price. For example, sales expert Grant Cardone suggests asking, “At what price would you feel comfortable buying today?” This question reveals the customer’s budget and gives you a baseline to work from.
Anchor the Price with Value and Benefits
Once you know their price, it’s important to introduce the value of your service to justify a higher anchor. Brian Tracy advises framing the conversation around benefits. For instance, say, “Our solution is usually valued at $X because it delivers [specific benefits].” This approach can help reset the customer’s expectations and explain why paying more is worthwhile.
Relate Pricing to Long-Term Value
Furthermore, Jill Konrath suggests connecting price to long-term value. So, if a customer suggests a lower budget, respond with, “Most of our clients pay $X per hour and see better hires, less turnover, and higher profits. Would you consider adjusting your budget for similar results?” By doing this, you show that the higher price is an investment. Consequently, this strengthens your position and brings negotiations closer to your target.
Use These Tactics to Master How to Negotiate Staffing Prices
In summary, mastering how to negotiate staffing prices means letting customers set the initial price, anchoring with value, and negotiating upwards. This method helps clients see the true worth of paying more. As a result, you often close deals at prices that benefit both sides.
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