How to Handle Client Pressure to Lower Prices
I remember this one client like it was yesterday.
I’d put together a detailed quote—factoring in high-quality materials, time, and the expertise I’d built over the years.
But as soon as I handed it over, he said, “Can you do any better on the price?”
Then came the classic line: “Come on, mate, I’m sure you can knock a bit off.”
It’s enough to make you grit your teeth.
And I know I’m not the only one—every tradie has faced this.
Whether you’re a builder, electrician, plumber, or another trade professional, clients always seem to think there’s room for a discount.
It’s tempting to drop your rates just to secure the job, especially when you’re up against competitors who might be willing to work cheaper.
But the real question is: Should you give in to client pressure and reduce your prices?
Or is there a better way to protect your profit margins while still keeping clients happy?
Why Clients Push for Lower Prices
Clients asking for a discount is just part of the game.
Everyone wants a good deal, and many clients think it’s normal to ask for a cheaper price, especially when it comes to trades.
They might have a perception that construction work is overpriced or think that they can get similar work cheaper elsewhere.
Or they might just be trying to save a few bucks, not realising the impact their requests have on your bottom line.
But here’s what you need to remember: You’re a professional, not a charity.
Your time, your skills, and your team's expertise are worth every dollar of that quote.
The True Cost of Reducing Your Prices
Giving in to pressure and cutting your prices might seem like the easiest way to win the job, but it’s a slippery slope.
Every time you lower your rates, you’re taking money directly out of your pocket.
When you reduce your price, you’re either taking less profit or having to cut corners to make the job work financially.
This can have serious consequences:
1. Lowering Prices Hurts Your Profit Margins
As tradespeople, it’s crucial to protect your profit margins.
Let’s say you agree to cut your rate by 10% to win a job.
That might not sound like much, but that’s money you’re losing directly from your profit.
If you keep agreeing to discounts, you’ll find yourself working harder for less money.
And in a high-cost industry like construction, where materials, insurance, and fuel costs are always rising, this can quickly put you under financial pressure.
2. Setting a Bad Precedent
When you start giving discounts, it sets a precedent.
If you give in this time, the client might expect a discount every time they hire you.
They may even spread the word to others that you’re willing to lower your prices, and suddenly every new client is expecting a deal.
And you know what happens next: You end up known as the “cheap tradie.”
That’s not a reputation you want if you’re trying to build a sustainable construction business.
3. Lower Prices Can Mean Lower Quality
If you’re forced to cut your price to win a job, you might find yourself cutting corners to keep the job profitable.
This might mean using cheaper materials, taking shortcuts, or reducing the time spent on a project.
Whether you’re an electrician skimping on high-quality wiring or a plumber using budget fixtures, these decisions can impact the quality of your work.
And that can hurt your reputation in the long run.
Clients remember the final result, not the deal they got.
Why You Should Stand Firm on Your Pricing
When clients push for a discount, it’s easy to feel like you’re at a disadvantage.
But remember, your expertise is valuable, and the price you set is based on what it takes to do the job right.
Standing firm on your prices doesn’t mean being inflexible – it means knowing your worth.
Here’s why it’s better to hold your ground:
1. Quality Comes at a Price
When you stick to your rates, you’re telling clients that quality work costs what it costs.
It’s a powerful message.
As a builder, carpenter, or plasterer, you know that using the best materials and taking the time to do the job right requires investment.
Most clients want the job done properly, and if you can explain why quality work costs more, many will see the value in paying a bit extra.
2. It’s About Respecting Your Trade
When a client asks for a discount, it’s often because they don’t understand the value of your work.
They don’t see the years of experience, the investment in tools, and the costs of running a construction business.
By standing firm on your pricing, you’re educating clients on what it really takes to get the job done well.
This not only helps you but also helps tradespeople across the board by setting better expectations with clients.
3. You’ll Attract the Right Clients
The clients who appreciate your pricing are often the ones who understand the value of your work.
They’re not just looking for the cheapest option – they’re looking for reliable, high-quality tradespeople who will get the job done right.
These clients tend to respect your time, trust your recommendations, and are more likely to become repeat customers.
How to Respond When Clients Ask for Discounts
So, how do you handle it when a client asks, “Can you do a better price?”
Here are a few strategies to try:
1. Highlight the Value You Bring
Instead of dropping your price, remind the client of the value you provide.
Talk about your experience, the quality of your materials, and your track record for delivering on-time and on-budget.
Explain how cutting the price could mean cutting quality – and that’s not what they want.
2. Offer Alternatives, Not Discounts
If a client insists on a cheaper price, offer a different scope of work instead.
For example, as an electrician, you could suggest a simpler lighting setup if the client is worried about budget.
This way, you’re working within their price range without undercutting your own rates.
3. Give Discounts for Full Payment Upfront
If you’re open to providing some flexibility, consider offering a small discount for full payment upfront.
This can help with your cash flow and still protect your overall price point.
But make sure it’s a controlled offer, not a standard expectation.
4. Stick to Your Price with Confidence
Sometimes, the best response is to confidently stick to your original quote.
Let clients know that your price reflects the true value of the work, and that it’s what’s needed to do the job right.
When you do this with confidence, many clients will respect your stance.
Remember, You’re Worth It
You don’t have to bend over backwards to win every client.
If a client only wants the cheapest option, they’re probably not the right fit for your business.
Your skills, your time, and your expertise are worth every pound in your quote.
By standing firm on your pricing, you’re setting yourself up for long-term success, attracting clients who respect your work, and keeping your business profitable.
If you want to learn how to price with confidence and avoid the pressure to cut your rates, join our Profitable Pricing Masterclass.
We’ll show you how to calculate your rates properly, communicate your value to clients, and grow a sustainable construction business that’s built to last.