Pricing Strategies

How do you manage difficult customer conversations around pricing?

Let's talk about what works, some of the hard places we've seen with clients clashing with pricing, how we've been burned, and how to manage that better in the future.

The case of the fixed-bid nightmare

I got burned good one one of my first large jobs. We had an extensive system spec and a flat bid with a cash penalty for finishing late and a bonus for finishing early.

Six weeks into the job, the client kept making little distinctions about things that weren't clear in the spec, and these things added time to the job (bringing the penalty for late every closer) while also costing us money (extra hours of programming time on the job). I went head-to-head with the client several times, the convo going something like this:

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