Charging customers different rates

[TDtech32]

Some customers insist on negotiating our service rates and agree to sign a contract only after they receive a discount (sometimes it seems any discount will do). If I really want to keep them I try to settle on a fee that’s close to my list-price hourly service fee. However, I just had a long time customer approach me after hearing I provided service for a lower rate than what was already agreed with him.
Appreciate any tips on how to deal with this, provided I want to keep my customers and yet not loose the ones that can be acquired with some discount.

[RoberT]

Re: Charging customers different rates

This is precisely why we refrain from negotiating prices as much as we can. Though sometimes, especially with a large client, we have to make an outstanding discount in order to win the account. If a situation occurs where another client asks for a similar discount we provide it only after we determine he will bring substantial business.

[JMarsil]

Re: Charging customers different rates

We match the discount on the customer's next bill, and this usually settles the situation and the customer is happy.

[cforger]

Re: Charging customers different rates

We keep our fees the same across the board for customers, with vry few exceptions. It's too hard to track what you're supposed to be billing someone, and leads to occasional errors.

Now, when you get into service plans, you can get different rates based on the package you get, but otherwise it's all the same rate for everyone. Little guy and big guy pay the same for me per hour, because my time is worth that rate regardless of who's asking for it.

[natrat]

Re: Charging customers different rates

I discount the rate for large *spend* clients. ie. they have to be doing a lot of business with me. I have one client who provides me with 5 times the billable hours of the nearest client, so to keep him happy i do give him adiscounted rate as the work is ongoing, regualr and guarenteed.

Ir you can avoid it its always best to never try and use price as your sole way of beating the opposition, as its a lose lose situation for you and every IT service provider around you.