PSMJ cites three mistakes that keep your fees too low
In its latest publication for architects and engineers, "Getting Paid What You're Worth," management consultants PS...
In its latest publication for architects and engineers, “Getting Paid What You’re Worth,” management consultants PSMJ Resources cite three mistakes firms often make that keep fees too low.
The three mistakes are described by PSMJ as follows:
“1. Reacting to cash flow problems. Once you begin working for the client at a substandard rate, it will be difficult if not impossible, to significantly raise fees for that particular client. It also presents a problem when the client recommends you to others who will also expect the same low fees. You must resist the temptation to lower your fees just to get business.
“2. Using lower fees to build/grow your client base. This strategy may increase the size of your client list, but can create problems along with it. Many people assume that lower fees imply lower quality. When consultants charge low fees, clients tend to miss appointments, ignore your advice, and value your service less. This often leads to an unsatisfactory experience and a premature end of the business relationship. With fees on the higher end of the scale, the opposite is usually true. Higher fees may not only bring more clients, but also better ones!
“3. Discounting fees for smaller businesses. Successful A/E firms base their fees on the economic value they provide as opposed to the economic status of the client. You’re running an A/E firm, not a charity don’t drop your fee just because your client can’t afford you. It’s better to refer them to your competitor than to lower your fees.
The publication, Getting Paid What You’re Worth, is available for US $185 during the month of June only. Visit http://www.psmj.com/publication/?id=28, e-mail firstname.lastname@example.org or call (800) 537-7765.