Negotiating as Consultant


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This presentation was given at "Hands-on Workshop for Negotiation Prowess" and geared towards women consultants and solopreneurs. We discussed ways to get over the fear of "No", negotiation frameworks, and experts scripts for making concessions and for raising your rate as a consultant.

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Negotiating as Consultant

  1. 1. Hands-on Workshop for Negotiation Prowess by Ji Eun (Jamie) Lee @jieunjamie Wednesday, August 7, 13
  2. 2. Agenda 1. Opening remarks: Kara Rota 2. Presentation: A. Believing in your value B. Articulating your value C. Negotiation frameworks 3. Scripts for making concessions and raising your rate 4. Role-play, feedback and open discussion Wednesday, August 7, 13
  3. 3. Before a negotiation I feel... • Dread ➡Procrastination • Fear ➡Undervalue myself • Lower expectations ➡Lower outcomes Wednesday, August 7, 13
  4. 4. Ding! • Deep breaths. Relax. • Imagine from their perspective. Identify shared interests.What do you both want? • Name the emotions you are feeling.Are they based on reality? • Go do something that makes you feel good. How does the Most ConfidentYou look, walk, and talk? *adapted from It’s Always Personal, by Anne Kreamer Wednesday, August 7, 13
  5. 5. How to ask for anything Confidence • Believe in your value. Preparation • 80% of successful negotiation. Relationship • Communicate that you care. Wednesday, August 7, 13
  6. 6. Frameworks • Value • Interest • Anchoring • Concessions • BATNA Wednesday, August 7, 13
  7. 7. Value & Benefits •Convenience •Efficiency •Organization •Reliability •Credibility •Avoiding risk •Authority •Revenue, clients •Time, money saved •Problems solved •Roadblocks cleared •Insurance, reduced risk •Increase in prestige What do your clients value?* What additional benefits can you deliver?* Wednesday, August 7, 13
  8. 8. Aligning Interest • Dig deep for interests. Ask diagnostic questions:Why, how, when, where, what, and who. • Listen to the other side. Don’t interrupt. • Frame your ask as mutual benefit Wednesday, August 7, 13
  9. 9. Anchoring • Set an ambitious anchor. Increase your perceived value. • Anchor based on value and benefits, not features. • Research your market value according to experience, geographic location, and industry.* vs. Wednesday, August 7, 13
  10. 10. Research Market Rate • Search online, and aim for high end of range • • • • Tap into your network • Industry insiders, outsiders • Mentors, peers • Frame your rate as high value relative to alternatives.* Wednesday, August 7, 13
  11. 11. Responding to pushback* • Make a concession and make it clear that what you’re giving up is costly to you. • Spell out the benefits to the other side. • Ask for something in return: testimonials, referrals, more time, etc. OR • Best Alternative to Negotiated Agreement • Supply and demand • What’s your bottom line for saying no? Wednesday, August 7, 13
  12. 12. • Expert Scripts Wednesday, August 7, 13
  13. 13. Concession Script: HBS Prof. Malhotra “This isn't easy for us, but we've made some adjustments on price to accommodate your concerns. We expect that you are now in a better position to make some changes to the project deadlines. An extra month for each milestone would help us immeasurably.” Label your concession Ask for reciprocity Spell out what you value “This is literally the best we can do on price right now. But if you can adjust some of your demands, we might be able to reopen the price issue.” Contingent Concession “Tit for tat” Wednesday, August 7, 13
  14. 14. Script: Ramit Sethi, IWT In the last year this is what we’ve done together. I’ve helped you manage your email inbox, saving you over six hours a day. I’ve helped refer you 19 clients generating a total of $450,000 and X dollars in commissions. This year, one of the things you told me was you’re looking for A, B, and C. Now, I’m going to be adding A as a complimentary part of my services to you. I’ll be able to do that for one hour a week for you as a complimentary part of us working together. The other thing is, I’m becoming more selective in the clients I work with. Now, you and I have had a great time working together.We’ve generated $450,000 dollars in revenue. And I’ve helped save countless hours. My rate is going to be going from $15 an hour to $25 an hour. If that’s something that you’re not comfortable with, please let me know. I’ll be happy to refer you to someone else who might be a better fit for your cost needs. But if this is something that works for you, these are my plans for the next 30, 60, and 90 days and I would look forward to working with you together.” 5:09 - 6:55 Value Addt’lValue + Freebie Relationship Ask & an out Specific Plan Wednesday, August 7, 13
  15. 15. Self-assess & say it out loud. • How do you contribute value? • What drives your client’s succes? • How will you research your market value? • What is your standard, or floor rate? • What is your value-based, or ceiling rate? • How will you frame your rate as high value? • What will you ask for in exchange for a concession? • How will you walk away from the table with grace? Wednesday, August 7, 13
  16. 16. Finally, don’t settle at no. Prepare. Practice. Be Persistent. (Yes, like a puppy) Wednesday, August 7, 13
  17. 17. Appendix: Hourly Rate Annual Salary Per Hour +50% +100% or double +200% or triple $40,000 $20 $30 $40 $60 $60,000 $30 $45 $60 $90 $80,000 $40 $60 $80 $120 $100,000 $50 $75 $100 $150 $120,000 $60 $90 $120 $180 $140,000 $70 $105 $140 $210 Wednesday, August 7, 13
  18. 18. Was this valuable to you? • Read my blog at • Tweet me at @jieunjamie • Email me at • Available for coaching sessions, webinars, speaking opportunities and group workshops I’m on a mission to reach 1,000 women this year. Would you help me get there? Wednesday, August 7, 13