106. How to know when to drop your prices (or not)

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Last episode, I talked about how I changed the price and scope up and down for a few different clients recently.

One thing I didn't get into is when to drop your price and when not  to drop your price.

There's a few situation when I might drop the price:

1. When the scope changes significnatly
2. When the value changes significantly (at which time I try to change scope, too)
3. When you have a great client who has given you lots of profitable work in the past, they're easy to work with, and it feels like the right thing to do

I never drop my clients to new prospects who simply ask for a straight discount (red flag), nor do I drop my prices for clients who are not living up to their end of the bargain on the implementation side of things (which impacts value).

At the end of the day, like I wrote about yesterday, you don't want to be the cheap consultant. You want to be the best consultant for people who need and value your work the most.

Otherwise you'll be spread too thin and won't be able to do the necessary groundwork needed to get them actual results.

Do you drop your prices in any other situations? Hit reply and let me know!

—k