When Clients Ask for Discounts, Don’t Drop Your Price — Shift the Conversation

It’s one of those calls you never quite get used to.

Your phone rings. It’s a long-standing client you genuinely enjoy working with. You’ve delivered great results together. You’ve always assumed there was trust, mutual respect, and a shared sense of value.

Then they say it:

“We’ve really appreciated your work over the years, but budgets are tight — we need you to reduce your price by 20%.”

And just like that, the dynamic shifts. And increasingly in the current climate, this is happening more and more.

Don’t Panic. Don’t Defend. Get Curious.

It’s tempting to react emotionally — to feel blindsided, undervalued, or worse, desperate to “save the client/account.”

But here’s your first rule: don’t say yes. Don’t say no. Ask why.

Before you get into the inevitable negotiations around your fees, the most critical thing you must do when someone asks for a discount is pause and understand why they are requesting the discount.

Much like a good doctor, this is your opening to diagnose before you prescribe.

Ask calmly:

“Thanks for raising that. Can you help me understand what’s prompting this request right now?”

That one question buys you time, signals maturity, and starts to reframe the conversation — from price to value and alignment.

What’s Really Going On?

Discount requests are rarely about price alone. They’re often about:

• Budget pressures (real or perceived)

• Economic pressures and business uncertainty (very real at the present)

• Internal procurement rules

• A change in your client’s Senior Leadership team (this could be the people your contact reports to internally)

• Testing whether you’ll drop your guard

• Doubts about ongoing ROI

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That’s why your job is to surface the real driver or drivers behind this request. Until you understand what’s motivating the ask, you can’t respond strategically.

Never Just Cut the Price — Change the Package

Once you understand the “why,” your response becomes clearer.

If the issue is budget:

Make it clear to your client that you have heard them and you understand their situation and that you want to help. The next part is providing something that can assist them. Look at how you can adjust the scope of any ongoing work or future work to better fit their budget. You can also look at shifting how you resource the work, using less expensive resources at your end to do some of the heavier lifting if appropriate.

Put simply, never just lower your price. If you’re running on hourly rates, once lowered they are very hard to bring back up. 

Instead of lowering your rates provide your client with a lighter version of your offering that fits their budget.

That might mean fewer deliverables, a shorter engagement, or removing extras  - while preserving your rate and value integrity.

Never reduce your core rate or fee. It sets a precedent that’s hard to undo and cheapens perception of your expertise.

But What If They Push Back?

If the client insists, and you believe the relationship is worth preserving, you can still hold your ground -  with empathy.

It may be that you need to respond with something along the lines of the below (put it in your own words of course!)

“I value our partnership, and I’m confident in the outcomes we’re delivering. If this is about finding savings, let’s explore how we can create more efficiency or reduce the scope of work - rather than cutting price.”

This shifts the focus from you as a cost to you as a problem-solver.

And if the client pushes purely for a discount with no flexibility? That tells you everything you need to know about the relationship.

Use This Moment to Strengthen the Relationship

If a loyal client suddenly asks for a discount, it’s a sign the relationship might have drifted into more of a transactional relationship and your client sees value in your work but not in their relationship with you. They may also feel that your competitors can do just as good a job as you, so this could be a precursor to them ‘testing the market’ territory.

If this happens, you’ll need to:

• Reaffirm your value

• Reopen the conversation around goals and outcomes

• Ask how the relationship can be improved and what else your client is looking for from you.

  
  

It is true that clients don’t ask their most trusted partners for discounts without good reason. They collaborate with them. Which means if they are asking now, even if it is external factors that have pushed the cost-cutting exercise, they are only asking their providers they see as just ‘service providers’ as opposed to those they see as ‘trusted and indispensable advisors’.

So go and ask:

• “What’s one thing we could do better?”

• “Is there anything you’ve been hesitant to tell us?”

• “How can we help you succeed this month/quarter/year?”

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This helps to rebuild the relationship - which is the real issue, not price. It is of course just the start so you’ll need to put a plan in place to continue to develop and grow your relationship with them, you may even need to implement some of the key steps in a key client plan, as outlined in this article.

Play the Long Game — Strategically

Discounts might win you short-term revenue - but they erode long-term profitability and positioning.

So instead of caving, build a system:

• Set pricing expectations early (and revisit them regularly)

• Avoid conditional language (like “normally we charge…” - it opens the door for negotiation)

• Train your team to confidently explain value

• Segment your offers so there are clear tiers for different budgets - without compromising your core rates

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And above all: invest in proactive relationship management. Stay close to key clients. Don’t wait for pricing to become the conversation.

Final Thought - when asked for a discount

Next time a client asks for a discount, remember:

It’s not a threat - it’s an opportunity to lead.

Use it to:

• Reinforce your value

• Realign the relationship

• Offer tailored options (not blanket concessions)

• Protect your profitability

• And, most importantly, move from ‘provider’ to ‘partner’ or in other words - indispensable advisor.

  
  

Because when you stand confidently in the value you deliver, your best clients won’t say,

“Can you lower your price?”

They’ll say, “What’s next?”