The prospective client is sitting across the table from you.

You quote your fee. He asks for a discount.

Can I just say that I hate this scenario? Negotiating over my fees is stressful for me. I don’t do it. I used to do it, but I’ve concluded that it’s just too much trouble. Of course, part of that comes from my position after having effectively marketed my practice for decades. I can afford to say no. The phone will keep ringing.

However, you may be in a different position. You may worry that you’ll lose this client if you don’t cut a deal. It’s stressful when the fee stands between you and whatever you need to pay for this month.

But be careful. What you do here, now, today will affect you over the long haul. Discounting your fee has repercussions. What you do today is likely what you’ll end up doing down the road. That’ll happen because (1) the word gets out, (2) you don’t learn how to stick to your guns, and (3) we all lean toward the path of least resistance.

How to Negotiate Without Discounting

Discounting your fee is different from negotiating. You can negotiate your fee without discounting.

When the client asks, “Will you do it for $7,000 instead of $10,000?” he’s asking for a discount. Don’t do it.

If, however, you respond with “Sure, but we’ll have to eliminate the settlement effort and immediately file our action,” “Sure, but we’ll have to do all of our communicating via e-mail instead of in-person or by phone,” or “Sure, but we’ll have to eliminate the trust document and do it with the other document instead,” then you’re negotiating.

What you’re doing when you’re negotiating instead of discounting is lowering the fee and simultaneously reducing the value you’ll deliver. You’re not cutting the fee for the service you previously offered. You’re describing a lesser service at a lower fee. That’s negotiating.

When you negotiate, you aren’t conceding the value proposition. You’re maintaining your position that the service you offered is worth the fee you quoted. The client understands that he has options but that he’ll get less if he pays less.

You’ll be unsuccessful in selling a service if you don’t believe in the value you deliver. You are the first buyer, and if you won’t buy it, then neither will anyone else.

When you believe in your value, you don’t discount. By refusing to discount, you demonstrate that you believe in the value you’ve created.