Managing Sticker-shock

Author: RAJ (Arokiaraj Arputharaj)

• The initial project was quoted at: $x
• Changes were required on the project necessitating variations – at double the cost of the original quote!

When this happens, it is ESSENTIAL that you call the client before you put in your variation documentation.

Why?

• The client will suffer from “sticker shock” after he sees your price.
• “Sticker shock” means that the client will be so surprised, and shocked, that he will fall off his chair.
• The client will lose trust in you.
• The client will try to negotiate everything down.

What should I do instead?

• Call the client and say that the changes are huge.
• Do not send variation documentation before addressing the “sticker shock issue”.
• We cannot and do not negotiate on prices.
• Going forward clients can choose between: (i) a fixed price quote – where we take on-board the risks of an infinite amount of variations, or (ii) where we charge variations but come in at a lower price.
• Our variations are FIXED in price.
• They are not negotiable.