Just because I don’t need or want a “partner” doesn’t mean I don’t care about the results, I just may not be interested in paying for any real or perceived additional value you may or may not be able to provide.

Sometimes you go to a fancy sit-down restaurant where you take a client to discuss a big project. Sometimes you grab a sandwich at a deli by yourself. Both provide food and both provide value in the specific area they serve. Just because the deli is cheaper and more economical doesn’t mean it doesn’t fulfill it’s intended need and do a good job of meeting that need.

The key is knowing which situations require a partner and in which ones a simple vendor relationship will suffice.

Alan Weiss
http://www.contratianconsulting.com

I agree that if the project is “market my business” or “build me a website from scratch” I am going to need to sit down with the vendor and discuss it and agree on the scope of the project before either party can talk about real needs and pricing.

If the project is “write me a 500 word press release from these provided notes” then there is no need to discuss it, just give me a quote.

Peter said: “[vendors]…waste my time “discussing” the project at a very early stage immediately gets ruled out.” … “I’m not going to waste my time or your time until I can be sure we are even in the same ballpark as far as costs. If you are going to charge me $20K for a project I only have $5K budgeted for, then you’re not the right vendor for the project.”

If a project is very early stage, then it often does not have enough definition to give a firm quote. I am honest with my clients because I don’t want them to get surprises down the road. But if there is not enough information to quote with confidence, or if it appears the RFP has a mistake then it is a business. Remember that the person you are getting a quote from is typically the expert. It is always possible that your budgeted amount is simply not appropriate for the project described (size, quality, etc.) If this appears to be the case, a vendor will want to clarify requirements to make sure they aren’t making a mistake.

Every industry is different, of course, but if this is happening to you frequently then perhaps you want to have a specialist review your budgets and RFPs to ensure that you have clearly covered all the significant parameters and have a realistic figure in mind.

Alan Weiss
http://www.contrarianconsulting.com

I can assure you, I say exactly what I mean. If I ask you for a quote that is exactly what I want. I gave you all the specs, now you do your part. I don’t want a confernce call to discuss the project. Any vendor who wants to waste my time “discussing” the project at a very early stage immediately gets ruled out. I have much better things to do that listen to you try to schmoze me.

I’m not going to waste my time or your time until I can be sure we are even in the same ballpark as far as costs. If you are going to charge me $20K for a project I only have $5K budgeted for, then you’re not the right vendor for the project. And that may be just as much my fault for asking you to quote on it. So give me the quote, let’s agree you’re never going to get the job and we can both move on. I’ll find someone who can do the work for $5K and you’ll find a client who needs your particular skills. If you respect my wishes and follow my instructions I would certainly consider you for a project that was a better fit. If you don’t do that you’re not going to get a second chance with any future work.

1. If you are submitting a fixed price, and the client balks, do not reduce the price without reducing the deliverables. After all, you’ve calculated the fixed price; lowering it without reducing the work involved represents a loss of profit to you.

2. Offer 3 possible proposals representing different levels of value. This gives the client options, and suggests to them rather than *should* they work with you, *how* they will work with you.

Both 1 and 2 above allow clients who feel they must beat down the price as an ego thing, a way to do just that… while allowing you to preserve your margins.

3. Do NOT quote hourly rates. The incentive is all wrong. It is wrong for the client, who will attempt to reduce the number of hours needed, and the incentive is wrong for you, because dragging out the work increases your margin. You know what it costs to do the job…figure out a reasonable markup and quote the whole job.

4. Be sure you are dealing with the buyer who can actually sign the checks. Don’t negotiate with gatekeepers. Anyone who says their high-schooler can do the job for peanuts isn’t serious… and/or is not invested in the project.

5. Much more on this in Alan Weiss’ “Value Based Fees” book, which I’ve found invaluable.