That’s a great video if you are offering your services and people know you. Because they recognize you and the services you offer, so in short they are kind of ready to be chopped off a bit more. Now, lets say i am buying a used car and want to get it at a price i want. The moment i low ball that person, the car gets taken by someone else. What would you do in this case? Because the market was open to the car seller. In your case the guy (as usually the case with most companies is, are not ready to do that research and don’t negotiate that much). What tips would you give in such a situation?
@@shairozkhan8560 This guy is giving advice that you can get literally get from a $5 book on negotiation. I really hate these self-help guys. It's so sleazy. To answer your specific question re to a used price, you shouldn't just make an excessive lowball because it will annoy the other person. And, you're wrong about the car being taken by someone else if you lowball. If the seller rejects your offer because there is a higher offer, you can just raise your offer. The seller will always want the higher price. In your particular case, you'll need to figure out what the other buyer's real bid is. The seller might be lying (and most likely will). I can't tell you exactly what I would do because it would be giving away my trade secrets but I can tell you that being persistent while being nice is key. Also, assume that everyone is lying because the guy who lies best wins a lot. Similarly to how the guy in this video convinced you.
I literally just did this last week after watching one of these videos to mentally prepare my mind. A client was referred to me and called me up. After I got a general scope of the project I dropped my price first and I dropped it high. He was shocked and didn't think it would be THAT high. I refused to budge and said if this price does not work for him I will happily find him someone that can do the work within his budget. Long story short, he came back to me and said: "I crunched some numbers and I can make this work. Let's work together."
I think this is great as long as we are providing value equal or greater to what they are paying. Just because you can get away charging someone more doesn’t always means it’s the correct thing to do if you’re trying to build a long term relationship.
My CEO does this. When we plan to buy a software license we know usually costs 10,000, he enters the negotiations with “our budget is 5,000”. When he sends me to negotiate, he says the budget is 5,000 and I should say it’s 4,000. This is an additional benefit if you’re the client - usually you can’t just go over budget without significant delays, and involving more people in the decision process - which is bad for the seller since he needs to make a sale and he knows more people involved means more chances for the deal to fail.
Dan Ariely and Daniel Kahneman have done some amazing work on the psychology of anchoring. Many companies use it when they create a really expensive (and often not worth it) offer so they can position other offers around this one and make the others look affordable in comparison. Thanks Chris for sharing this and especially with a practical scenario
Hey Chris. First things first. I love the new bite sized style content! It's amazing! What I've gathered about anchoring from this video is you need confidence. Don't feel guilty when they say they can't afford you because it ends up in a downwards spiral. I don't even do graphic design but it's applicable in marketing and Law. Cheers and thanks for the value
I did sales in my 20’s for a few places including car sales. This was intuitive as soon as you see how stubborn people are and feel like they are being exploited after saying a number and then deviating from it. Part of the process I used was to avoid them ever making any decisions on numbers because they would mess it up and then maybe be stubborn and we all lose.
This is the best I have watched in your channel, you know what you talking about and I have seen everything you say in my dealings with clients. I just drop a number (always high), and I let them deal with it.
I was watching this without sound and reading the generated subtitle and it said ‘..say your number first and say hi!’ I was a bit confused so I’m glad I scrolled through the comments and found yours.
I had a client on the hook who just would not close after nearly closing instantly in our first encounter. I knew he was debating whether someone could do it for less but not saying it. If I had offered to fond someone in my network who could do it for less I think it would have closed the deal or at least opened the line of communication to identify the reservation. That line is gold and I will definitely use it in the future.
You know I wanted to say thank you Chris as your videos have been gold! I was inspired so much after first coming across you that I finally launched my creative consulting business! This video also helped me decide whether or not I should list my price on my site and after some meditation: I decided that it is best to show my prices. And my reasoning for this is looking at metals. Everyone understands that gold is the most valuable and precious metal and will buy it no matter the price because it is already known and perceived to be rare and valuable; silver is second; brass/bronze is third; and iron is last. I believe that Life has guided and drawn me to you because you are as valuable as gold in what you offer. Thank you again Chris!
Don't abuse this technique. If you have an average skillset. You are replaceable. See if you have an unique skill set this works, not always. Anchoring works well when you have a certain amount of leverage. Otherwise, a person or company with insufficient value will simply have no weight behind that anchor. Especially an 'oldhead'.
Haven’t even finished watching and I’m in love already this is seriously the best channel on this whole planet I love you guys thank you so much (p.s. biggest Chris fan ever)
This really did work for me. I used to be in sales, so I had a few habits that stuck with me over the years. I just got into business in my industry and had a sit down with my first recurring client. This video popped up in my head when there were some objections that seemed to be cornering me towards the standards of their previous contractor who couldn't deliver. After a bit of hardball.. we've signed the contract under my conditions.
Loved the use of footage - that would have ended on the cutting room floor - to end the vid. The anchor high is what I've incorporated into my numbers discussion. Whatever i think they'll pay, i add a few hundred dollars on top. I'm working my way to adding a few thousand dollars on top.
The first one is just wrong and the second one is super common conventional wisdom. Anchoring is basic NLP bull that "gurus" like Tony Robbins have been preaching since they started. Nothing new or special. He omitted that the naming your price first, generally, doesn't put you at any advantage. It does two things, it gives the other person a better sense or a real sense, of what you can as opposed to willing, to give, and it, depending on your timing and delivery of that price, can expose things you don't want exposed, like fear or lack of confidence. Negotiating is a little like playing poker. You're not playing against the other player's hand (literally speaking you shouldn't be trying to guess or assume what the other person's budget is beyond what's reasonable) which is the opposite of what he's teaching actually but may not have realize it, what you should be doing is playing against the other person's performance, reading their body language for example. You need to get a read on where this person might be coming from. Another big reason why you don't want to be first is that you can learn a whole lot from just observing what the person will do and if the person is experienced and smart, the other person will be doing the same. You can get a lot of information from holding fast. If you go first, then you can't see if the person is anxious or being challenged at all. That alone can put you in a power position to raise your price or lower the other person's. If the other person goes second, then the other person is likely to easily to take a cue from you. Oh, you charge THIS much? I don't need to bother in this crowded field, or this might not be worth it. Those are just a couple examples. He was leading people astray there.
This guy has way too few views for the pieces of advice given on his videos. Deserve way more views. And I'm sure that eventually his channel will explode. Its good and high quality advices. Straight to the point
Thanks Chris Do for your amazing content. By far the best, most helpful channel on UA-cam. You have a lot of great content both on design but life in general. This channel is a real motivator for me and my career and has genuinely been a huge inspiration to me. I would love a t shirt which has simply has 'thefutur' on it to rep you guys! You need to come to the UK, I would love to see you live. Great stuff
That’s a good tip Chris! I have a follow up question: how do we know that he’s able to afford 30 or even 10 in the first place? We could have started by throwing a number like 8k and it would have ended there or most probably even got lowered.
I wonder this a lot of the time as well when talking with clients. Research/Experience maybe? Sometimes information is embedded in the details of the conversation, and you can glean some insight as to what their budget might be. Other time's it's completely indiscernible as to whether or not they have $100 or $10,000. I feel like it's one of those things where with enough practice you can go "Oh yeah. This is a big company, and they have TONS of money and X budget for most projects like this." or "I've worked with clients like this before, and for this type of project they have X budget.". Independent clients and VERY small businesses are much harder to gauge since there's almost no information regarding financial status usually.
You base it off YOUR cost. What have you made for this type of work before? What do others in a similar industry charge? You don't want to be the guy who undercuts everyone else, and you don't generally want to be the most expensive at what you do, unless you have the quality to back it up. A good guideline is to sit down and honestly come up with your costs per hour/job/day/week etc. Then figure out if you have material cost on top of time, and go from there.
"Say your number first and say it high" Black T-Shirt > Helvetica Neue Semibold in white for "Say your number first" Helvetica Neue Black in white for "and say it high" (All right justified, with "the futur" blue logo small, in the shirt down right corner). As a Designer, it's the least i can do to thank this highly valuable knowledge.
Dear Chris, I understand what you're saying and I did this a week ago, the thing which I walk against was that they closed the door for further negotiations immediately.. saying my price was too high for them. I offered them to come up with their own budget and that we could try to work within their price. Not long after that they explained to me that they thought it was unprofessional towards me and they did not feel comfortable coming up with their own price because the gap was too big for them. So the only option I could think of was to respect their decision and let this project go, even though I really wanted to do it. If this happens to me in the future again do you know any way to save the negotiations and keep the project alive? Or can I throw a new anchor trying to revive this project?
Stick to your guns or you lose every time. Everyone that reaches out to you isn’t a good fit. Secondly, keep leveling up. One day your skill will exceed your price.
Indeed, you need a high anchor but still a realistic one in your counterpart's mind or they will discard you directly. So what you can do is get a sense of their range of expectations without any numbers. Ask to pick form 4 ranges (so there's no middle one) that everybody gets : would like your project to be more like a Rolls Royce, an Audi, a Toyota or a Skoda ? When they answer, drop a related anchor.
I would guess they felt you were high-balling them, which is how I would feel if I walked away from a quote, and then someone got back in touch and said "please name your price!", which is the reality of "come up with your own budget and we'll try to work with it." Instead, you can always try to explain why your initial price is what it is , and rebuild value if someone completely walks away and ends communication, but it likely won't make a difference at that point. 99.9999% of the time they're not a good fit based on the quick "no thanks, bye" response. There's no point in calling them back in desperation and asking them for their lowest price. Worst case is that you actually get their business, but now there's very little trust in the relationship, they have all the power of knowing they did you a favor, and the project hasn't even begun. That's guaranteed to be a client experience you'll look back on and say "I wish I never asked for a second chance."
@@thefutur great. But it is hard top do it when you really need that job to close the month... I think one can do this gathering enough customers at a price that allows you to get the needed money for the month them, once reached that target, closing customers with an higher price until the beginning of the next month. This keeps you solvent, opens the door to more time if someone pays the higher price and so let you with the need of less low paying customers the following month to reach the same income target. Once you reached it faster thanks to your new high paying customer you can start earlier in closing another couple of customers with the higher price. Repeating the cycle you end with enough high stable income to start selecting only high paying customers. Of course you set another income target at that point, reach it with the high paying customers and once reached the new income target for that month you can start increasing again the price with the new customers, until you reach more and more income levels. Does it make sense?
@@learnitnshare5513 I'd say you rephrase their question and answer your newly rephrased question. They ask: "How much did you make at your previous job?" You reply: "I'm looking for a salary of $X."
Always lie, I have always lied to new employers about older salaries and they never fact check. A manager never asks how much did you pay him. it just never happened. SO every few years I changed jobs, increasing my take home pay regularly. For those thinking why wouldn't I just ask for a pay rise and stop moving jobs so much? Here is your answer. I tell this to all the young people I train in my trade. Once you are on the books for a certain paygrade, they will find ways to stop those numbers deviating. So you can go in and ask for a pay rise every year and get knocked back every year because they can just hire some one else at that starting rate. So I made it a firm point to find a higher paying employer in the same job category instantly after not getting a pay rise. This probably only works in industries where you know more than your employer about the job they are hiring you for. I have had the I'm sorry talks from management a few times, we will pay you more, please don't leave, after I've resigned, but I've always been firm and moved on. Hopefully it taught them a valuable lesson. For me now I'm at the point where I'm unwilling to work for anyone anymore, It's easier to run and manage my own business than it is to make money for other people. Hopefully you can make use of this negotiating tactic when looking for a new job. START HIGH and don't budge. I had an interview where I refused to take the starting rate and my number was 20% higher than the average rate. In the negotiation they emphasized they can not accommodate me at my desired salary. I walked out assuming I wasn't getting the job, a week or so later they called back and offered me the position. They took too long, I already accepted a job closer to home. Moral of that extra story is, even when you think the negotiation is over it isn't because they are still looking.
Yes, you should 100% be the one setting the price, but the advice in your video is more about avoiding real price negotiation, which I absolutely think is the right step for a creative to take. But to add a little nuance to the situation - I would much rather know a team member lost a client, but did everything they could to treat price as an objection like any other, and as such overcome that objection with a conversation, than know we got a client but did so because we immediately dropped price, or employed the higher risk confidence game of "I don't need your business you should use someone cheaper." Of course It all depends on the client's buyer personality, your reputation, and the situation. And the overcoming objection conversation isn't easy to hone anyway, but I'd at least try it before walking away immediately, which is really the strategy you're advising in the video. That said I think "walking away" is much less risky for long term business growth than trying to engage in a real negotiation with a superior negotiator. So I guess what I'm trying to say is I completely agree with your way-more-accessible-than-mine advice, lol. But it may help to clarify that this isn't about "negotiating", it's about not negotiating.
I sat next to Chris Voss in 1st Class on a trip home one night during COVID protocols. I only heard his voice because he had a mask on. I said how is your night going Mr. Voss, and he was like yeah! LOL We blabbed the rest of the flight about sales and negotiations. He was so nice and personable.
This only works if you already have an impressive portfolio with huge clients, if you act this way as a beginner you'd starve before you find someone who will pay you the price you want
@@amokana This is obviously not true. Sorry but such general statements are nonsense! Even without "an impressive portfolio with huge clients" it's possible to score good prices with great customers. You probably shouldn't start your first job by asking for a huge sum if you don't have anything for the customer to show them WHY they should give you this sum and not hire someone cheaper. Sure, "other clients chose me" is one thing, but there are so many other ways to convince new clients. If you know your worth and know what you can deliver for the price, then go for it. I don't have a masterclass on anything, so I'm obviously only talking from personal experience.
The important part is that your price needs to be reasonable and market rate first. Unless your skills are irreplaceable and no one else can do it, your first high price will just deter most of your potential clients away. This is going to happen a majority of your sales as I havent seen any skills where only one person can do it.
WOW! That's really amazing! Give them a number, and they get stuck on the number, good strategy. :-D Will try this with all our new clients. Thank you so much. LOL, a new big fan of #TheFutur ;-) had to get a Telegram bot to start monitoring all your posts and get me notified in my inbox whenever you post a new video. Though it's always 15hrs Late. Will figure out the bug later. Anyways thanks for being here, you can't imagine how many stress and headache your videos had saved me from.
LOL, It's not your fault, it's my Telegram bot that delays the delivery. Good news! it's now just 2hours late. 13 hours solved. Really cool. :-D Thanks for the reply.
I applied for a engineering job, got to the last stage and was offered an internship for 3months with a conditional 1 year contract after the 3 months. At the same time I got an another offer and when i told the internship company, they mentioned i could check in to see what they can offer. How should i go about renegotiation, if i have already virtually accepted the internship, i haven't signed the contract yet? Their stipend is about 20% the fulltime
This is great in a situation where people are used to negotiating. Unfortunately, many are not used to negotiating and feel uncomfortable with the idea of going back and forth.
I second that. As a designer I will quote a price based on an hourly rate. The client will convince me that I can do it in half the time... then I spend three days and 48 emails doing variations.
What about a salary negotiation? Is it better to receive an offer first? Or tell them your salary requirements up front? Or give them a range after intense dodging of the question?
Thank you for this video :) I started applying this technique for the past week based on some of your previous videos and I actually managed to double my rate with some clients :) but some just didn't have the budget for it so I ended up going with their offer, (Which I didn't actually mind because they ended up to be cool clients) but I wanted to ask: What can be done in cases like this? where the client doesn't have the resources? should we just move on to bigger fish or should we make the compromise if we have a good feeling about them?
@@thefutur What is the thought/reason for moving on? Is some work better than no work or is it the illusion of not getting higher paying work? Or is it by standing firm on your rates better for your overall referrals/future prospective jobs
This assumes an uninformed/ignorant customer. The old saying plays true here - knowledge is power. Before any negotiation, be as informed on the market, the rates, the outcomes, and the reputation of the other party as possible. For the buyer, always bid work out to multiple parties. Find the hungry but competent and manage great work at a fair price. Then, reward and bring along the delivery with return work. In my work, if one comes in high, they are discarded. There is very little in the market that is that unique as to demand a premium. Proven delivery and strong value within or below market rate is the winner. The customer anchor should be backed like this - "The market for this work is X. This is composed of Y cost and Z profit over this delivery period. What extras are you going to provide to improve this opportunity?"
If I set my number high, $3500 my customer is usually turned off. When I write my actual quotes my high number is right about 3500 but I can get quotes lower than that. I will close based on the middle option.
When you billing a project, you also billing your time. Your time - your life. Do you really want anyone to tell the price? :D If someone is trying to pay less than your price, it’s a life threat :D perfect internet conclusion award goes to me today :D
Stefano Papaleo If you charge per hour it's more like yes. But when it's payment per project or value based - different story. Anyway, even when you brush your teeth you spend time on it. When you billing your work in right way, you have more freedom. With freedom you just manage your life the way you want.
So what happens when you go first and high, but the client simply declines and finds someone for the money you would have happily done it for, had you not played games?
@@marvelous1358 Well sure, but how many is "some", and why lose any at all, when you can give a reasonable price instead and get everyone willing to pay it? If the client is going to haggle down from a reasonable price, you're probably better off not doing that job in the first place, right? So I don't see the down side. Yet, here's a guy saying you should overprice your service to preempt the haggle, which may not even come. Seems like a good way to lose clients.
@@oNtuobAwoH the problem with underselling your service will dictate the future of your business. Try underselling your service just to please low balling idiots and see if your business is still around in year 5 and making profit. Business 101.
@@PhiyackYuh Not overselling isn't the same as underselling, my man. What I'm saying is, if you're good at what you do, you know very well what your market price is. So, instead of going high, why not go for fair, make your clients happy with your work and keep them over the long run. Best you can hope for with overselling is to trick a client into a project, or two, untill they realize they could be paying a lower price for the same work. And you didn't address my question pertaining to the direct losses incurred by overselling and losing clients from the get go. The only logical reason to go high is if you are overbooked. Which I doubt most people taking courses such as this one are.
Anchoring is a legit way. But what is about competition, and priority of the client if he doesn't need that. He needs obviously but what happens next, a terrible thought he come up with to go to another designer, while he just thinks he doesn't have enough time to negotiate and he have a better choice than me. Can you guys please give me an insight what to do here? I am suck on Fiverr, the cheapest market in the world, logo design only for 5 bucks, it really sucks.
I always offer my real top number. So if someone ever says "Thats not gonna work can you come up with a better number>?" I say "Sure" and offer an even lower number.
I can't imagine this being a strategy for new clients who don't have a relationship with you. What strategy would you use to get your foot in the door if you're just starting out?
The same. You're worth what you're worth whether they know you personally or not. If you call a plumber he gives you his price the same whether he's ever talked to you or not. It is what it is.
@@evocati6523 if you take your car into a garage for an oil change... you know you are going to pay more if you ask them to "do the breaks whilst it's there" Why do clients expect you to make changes to artwork "while you have it open" for free?
Chris, I noticed on Blind.com that your intake form asks people to briefly describe the project and their budget. Doesn't that give them an advantage and invite the prospective customer to anchor a price? If not, why not?
I don't deal with offers since I started my own business over 20 years ago to get away from the toxicity and politics of corporate America. How would I deal with a lowball offer? I walk away. I also never meet in the middle if an offer comes in close. Do your homework and know going in what you are worth, and any company worth working for will come close, at, or more.
Well yes and no. In the property market sellers who set their price way above the market value may not get any viewings while othe properties at more reasonable prices are snapped up. You have to understand the market you are operating in and study the competition when deciding on your price.
I'm living in a negotiating culture. A common practice here is for someone to say, like, "I don't want this dress for that price. How about you give me a 2nd one for 50% more?" That way they basically get a BOGO half-off deal but the seller is thinking "I got more money right now rather than later." How can we translate this into design work? (Btw, people always bristle at logo costs of $250... even $12 may be seen as too much, especially for online businesses not formally registered because "it's just a project, not a business".)
Damn, I'm selling my business and it's been up for sale for 2 weeks now and after watching this video I realized I've been doing it wrong. I started with a low price and now I'm fcked! What can I do at this point???????
Learn more about our Business Bootcamp, designed to help you attract the right clients and grow your business: ftris.me/ZPEFUtJ
That’s a great video if you are offering your services and people know you. Because they recognize you and the services you offer, so in short they are kind of ready to be chopped off a bit more. Now, lets say i am buying a used car and want to get it at a price i want. The moment i low ball that person, the car gets taken by someone else. What would you do in this case? Because the market was open to the car seller. In your case the guy (as usually the case with most companies is, are not ready to do that research and don’t negotiate that much). What tips would you give in such a situation?
@@shairozkhan8560 This guy is giving advice that you can get literally get from a $5 book on negotiation. I really hate these self-help guys. It's so sleazy.
To answer your specific question re to a used price, you shouldn't just make an excessive lowball because it will annoy the other person. And, you're wrong about the car being taken by someone else if you lowball. If the seller rejects your offer because there is a higher offer, you can just raise your offer. The seller will always want the higher price. In your particular case, you'll need to figure out what the other buyer's real bid is. The seller might be lying (and most likely will). I can't tell you exactly what I would do because it would be giving away my trade secrets but I can tell you that being persistent while being nice is key. Also, assume that everyone is lying because the guy who lies best wins a lot. Similarly to how the guy in this video convinced you.
"That's not gonna work , can you come up with a better number?" That's so good man !
And what if they say no
@@Imchillingidk then ✌
I don't see this working - my clients would ask me "well how much would you have in mind then"
then you tell them, and make it high if you’re going to negotiate something lower with them. be in control of the situation ✌️
@@logan2113 thanks Logan, good idea
This idea is also in the book called "Never Split the Difference". It's a negotiation book that's written by a hostage negotiator.
Yes. chris Voss.
im going to read that book
An ad came up for the masterclass when I opened this video.
@@g3osom1 I watched the masterclass. It was pretty good.
whats the name of the author
I literally just did this last week after watching one of these videos to mentally prepare my mind. A client was referred to me and called me up. After I got a general scope of the project I dropped my price first and I dropped it high. He was shocked and didn't think it would be THAT high. I refused to budge and said if this price does not work for him I will happily find him someone that can do the work within his budget.
Long story short, he came back to me and said: "I crunched some numbers and I can make this work. Let's work together."
Awesome!!
What if he said sure find him someone that can work within his budget 🤔
I think this is great as long as we are providing value equal or greater to what they are paying. Just because you can get away charging someone more doesn’t always means it’s the correct thing to do if you’re trying to build a long term relationship.
My CEO does this. When we plan to buy a software license we know usually costs 10,000, he enters the negotiations with “our budget is 5,000”.
When he sends me to negotiate, he says the budget is 5,000 and I should say it’s 4,000.
This is an additional benefit if you’re the client - usually you can’t just go over budget without significant delays, and involving more people in the decision process - which is bad for the seller since he needs to make a sale and he knows more people involved means more chances for the deal to fail.
Cool!
Dan Ariely and Daniel Kahneman have done some amazing work on the psychology of anchoring. Many companies use it when they create a really expensive (and often not worth it) offer so they can position other offers around this one and make the others look affordable in comparison. Thanks Chris for sharing this and especially with a practical scenario
I can't believe the solution to one of my biggest pain points was answered here. I feel like I need to pay you now.
Please do. Become a sustaining member.
Best I can do is $1000.
reciprocity, one hell of a principle
This is one of the best videos I've ever watched on your channel. Clear, concise, insightful. Learned so much in so little time. Thanks so much.
Hey Chris. First things first. I love the new bite sized style content! It's amazing! What I've gathered about anchoring from this video is you need confidence. Don't feel guilty when they say they can't afford you because it ends up in a downwards spiral. I don't even do graphic design but it's applicable in marketing and Law. Cheers and thanks for the value
I did sales in my 20’s for a few places including car sales. This was intuitive as soon as you see how stubborn people are and feel like they are being exploited after saying a number and then deviating from it. Part of the process I used was to avoid them ever making any decisions on numbers because they would mess it up and then maybe be stubborn and we all lose.
Gold! No long winded explanations, just straight to the point. Thank you!
This is the best I have watched in your channel, you know what you talking about and I have seen everything you say in my dealings with clients. I just drop a number (always high), and I let them deal with it.
"Say your number first and say it high"
Powerful ending to the video!
And i lost all my clients
I was watching this without sound and reading the generated subtitle and it said ‘..say your number first and say hi!’ I was a bit confused so I’m glad I scrolled through the comments and found yours.
@@blessing99999 better to loss lowball clients
is always a delight to hear Chris talking, you learn so much.
Appreciate it
I had a client on the hook who just would not close after nearly closing instantly in our first encounter. I knew he was debating whether someone could do it for less but not saying it. If I had offered to fond someone in my network who could do it for less I think it would have closed the deal or at least opened the line of communication to identify the reservation. That line is gold and I will definitely use it in the future.
You know I wanted to say thank you Chris as your videos have been gold! I was inspired so much after first coming across you that I finally launched my creative consulting business!
This video also helped me decide whether or not I should list my price on my site and after some meditation: I decided that it is best to show my prices. And my reasoning for this is looking at metals. Everyone understands that gold is the most valuable and precious metal and will buy it no matter the price because it is already known and perceived to be rare and valuable; silver is second; brass/bronze is third; and iron is last.
I believe that Life has guided and drawn me to you because you are as valuable as gold in what you offer. Thank you again Chris!
Thanks Jeremy. And congrats.
Don't abuse this technique. If you have an average skillset. You are replaceable. See if you have an unique skill set this works, not always. Anchoring works well when you have a certain amount of leverage. Otherwise, a person or company with insufficient value will simply have no weight behind that anchor. Especially an 'oldhead'.
Haven’t even finished watching and I’m in love already this is seriously the best channel on this whole planet I love you guys thank you so much (p.s. biggest Chris fan ever)
Chris playing on statues has become a B-roll staple. Great vid!
This really did work for me. I used to be in sales, so I had a few habits that stuck with me over the years. I just got into business in my industry and had a sit down with my first recurring client. This video popped up in my head when there were some objections that seemed to be cornering me towards the standards of their previous contractor who couldn't deliver. After a bit of hardball.. we've signed the contract under my conditions.
Loved the use of footage - that would have ended on the cutting room floor - to end the vid.
The anchor high is what I've incorporated into my numbers discussion. Whatever i think they'll pay, i add a few hundred dollars on top. I'm working my way to adding a few thousand dollars on top.
This new anchor trick, it actually have worked for me in past
Now this is a valuable negotiation lesson. Thank you for putting out such great content.
The first one is just wrong and the second one is super common conventional wisdom. Anchoring is basic NLP bull that "gurus" like Tony Robbins have been preaching since they started. Nothing new or special. He omitted that the naming your price first, generally, doesn't put you at any advantage. It does two things, it gives the other person a better sense or a real sense, of what you can as opposed to willing, to give, and it, depending on your timing and delivery of that price, can expose things you don't want exposed, like fear or lack of confidence. Negotiating is a little like playing poker. You're not playing against the other player's hand (literally speaking you shouldn't be trying to guess or assume what the other person's budget is beyond what's reasonable) which is the opposite of what he's teaching actually but may not have realize it, what you should be doing is playing against the other person's performance, reading their body language for example. You need to get a read on where this person might be coming from. Another big reason why you don't want to be first is that you can learn a whole lot from just observing what the person will do and if the person is experienced and smart, the other person will be doing the same. You can get a lot of information from holding fast. If you go first, then you can't see if the person is anxious or being challenged at all. That alone can put you in a power position to raise your price or lower the other person's. If the other person goes second, then the other person is likely to easily to take a cue from you. Oh, you charge THIS much? I don't need to bother in this crowded field, or this might not be worth it. Those are just a couple examples. He was leading people astray there.
@@bldrnnerln3894 LOL, anchoring in NLP, isn't unrelated concept. Same name, but different comcept
This guy has way too few views for the pieces of advice given on his videos.
Deserve way more views. And I'm sure that eventually his channel will explode.
Its good and high quality advices. Straight to the point
“I can’t afford it, “monetarily “ lol
Yeeaaa, sometimes sales guys will go on some tangent with mental gymnastics before bringing it back. If you don't take some control.
So she can afford it by other personal services eyy 😉
@@chabrow5459 she worths 300usd depending on skill and passion
Was making sure I wasn't the only one who caught that🤣🤣
Lol...there are plenty of professionals he could hire for less than 1k that will deliver well.
Incredible advice... why haven't I realised this before. It's such a simple concept and makes total sense. Thank you for your insight Chris!
You’re very welcome.
Love this concept. As the negotiator we need to set the anchor. Great clip Chris.
I love short content like this from your channel
He just read 'Thinking fast and slow' by Daniel Kahneman, in case some of you were wondering.
was searching here for the book he was referencing to
Thanks Chris Do for your amazing content. By far the best, most helpful channel on UA-cam. You have a lot of great content both on design but life in general. This channel is a real motivator for me and my career and has genuinely been a huge inspiration to me. I would love a t shirt which has simply has 'thefutur' on it to rep you guys! You need to come to the UK, I would love to see you live. Great stuff
Thank you.
Awesome advice. It works in sales too. Thank you.
THIS IS SALES!
That’s a good tip Chris!
I have a follow up question: how do we know that he’s able to afford 30 or even 10 in the first place? We could have started by throwing a number like 8k and it would have ended there or most probably even got lowered.
I wonder this a lot of the time as well when talking with clients. Research/Experience maybe? Sometimes information is embedded in the details of the conversation, and you can glean some insight as to what their budget might be. Other time's it's completely indiscernible as to whether or not they have $100 or $10,000. I feel like it's one of those things where with enough practice you can go "Oh yeah. This is a big company, and they have TONS of money and X budget for most projects like this." or "I've worked with clients like this before, and for this type of project they have X budget.". Independent clients and VERY small businesses are much harder to gauge since there's almost no information regarding financial status usually.
You base it off YOUR cost. What have you made for this type of work before? What do others in a similar industry charge? You don't want to be the guy who undercuts everyone else, and you don't generally want to be the most expensive at what you do, unless you have the quality to back it up.
A good guideline is to sit down and honestly come up with your costs per hour/job/day/week etc. Then figure out if you have material cost on top of time, and go from there.
"Say your number first and say it high"
Black T-Shirt >
Helvetica Neue Semibold in white for "Say your number first"
Helvetica Neue Black in white for "and say it high"
(All right justified, with "the futur" blue logo small, in the shirt down right corner).
As a Designer, it's the least i can do to thank this highly valuable knowledge.
I'm not even in business but this stuff is fascinating
Ok..1 sec
R we really going to ignore the fact that he did that email notification sound sooooooo perfectly.?
That’s it!! I replayed it to make sure it was him haha
Danm that was a proper 👌🏿 opening !
Have a lot of leverage or the perception of it. Works every time.
Can’t wait for the day I officially sign up at THE FUTUR and become a part of the pro group
hope to see you on the inside. we are now over 500 people!
This is the best advice ever. Not sure id bother with the bootcamp after youve given all your secrets away? Go Lower!
She just tried to pay with something else. "Monetarily, no..."
wonder if he caught that lol
@@tdias25 I know I caught it.
He knows the money will go a longer way than a one night stand
@@Student4Life1975 and is subscribed to 3 different streaming services
Excellent video amen.
Short, sweet and very clear!
Thanks for sharing, James
So glad I found this video👌🏾
New Skill Unlocked! Thanks Chris!
Dear Chris, I understand what you're saying and I did this a week ago, the thing which I walk against was that they closed the door for further negotiations immediately.. saying my price was too high for them. I offered them to come up with their own budget and that we could try to work within their price. Not long after that they explained to me that they thought it was unprofessional towards me and they did not feel comfortable coming up with their own price because the gap was too big for them. So the only option I could think of was to respect their decision and let this project go, even though I really wanted to do it. If this happens to me in the future again do you know any way to save the negotiations and keep the project alive? Or can I throw a new anchor trying to revive this project?
Stick to your guns or you lose every time. Everyone that reaches out to you isn’t a good fit.
Secondly, keep leveling up. One day your skill will exceed your price.
Indeed, you need a high anchor but still a realistic one in your counterpart's mind or they will discard you directly. So what you can do is get a sense of their range of expectations without any numbers. Ask to pick form 4 ranges (so there's no middle one) that everybody gets : would like your project to be more like a Rolls Royce, an Audi, a Toyota or a Skoda ? When they answer, drop a related anchor.
@@ronfya That is also very good advice! Thank you I will keep this in mind!
I would guess they felt you were high-balling them, which is how I would feel if I walked away from a quote, and then someone got back in touch and said "please name your price!", which is the reality of "come up with your own budget and we'll try to work with it."
Instead, you can always try to explain why your initial price is what it is , and rebuild value if someone completely walks away and ends communication, but it likely won't make a difference at that point. 99.9999% of the time they're not a good fit based on the quick "no thanks, bye" response.
There's no point in calling them back in desperation and asking them for their lowest price. Worst case is that you actually get their business, but now there's very little trust in the relationship, they have all the power of knowing they did you a favor, and the project hasn't even begun. That's guaranteed to be a client experience you'll look back on and say "I wish I never asked for a second chance."
@@thefutur great. But it is hard top do it when you really need that job to close the month... I think one can do this gathering enough customers at a price that allows you to get the needed money for the month them, once reached that target, closing customers with an higher price until the beginning of the next month. This keeps you solvent, opens the door to more time if someone pays the higher price and so let you with the need of less low paying customers the following month to reach the same income target. Once you reached it faster thanks to your new high paying customer you can start earlier in closing another couple of customers with the higher price. Repeating the cycle you end with enough high stable income to start selecting only high paying customers. Of course you set another income target at that point, reach it with the high paying customers and once reached the new income target for that month you can start increasing again the price with the new customers, until you reach more and more income levels. Does it make sense?
This is brilliant and so well explained. Thank you!
Glad you enjoyed it!
Fabulous advice ~ thank you for sharing.
I love this. Always dropping gems. Thank you.
Glad you enjoy it!
Great video! Love the negotiation tips!
Very important in Salary Negotiations, never say your old salary, you are anchoring against yourself.
Oh thanks ! But how do you answer that question though ?
@@learnitnshare5513 I'd say you rephrase their question and answer your newly rephrased question.
They ask: "How much did you make at your previous job?"
You reply: "I'm looking for a salary of $X."
good tip
@@HungryTacoBoy Not to attack you or anything, but that is not how it works, in the corporate world at least.
Always lie, I have always lied to new employers about older salaries and they never fact check. A manager never asks how much did you pay him. it just never happened. SO every few years I changed jobs, increasing my take home pay regularly.
For those thinking why wouldn't I just ask for a pay rise and stop moving jobs so much? Here is your answer.
I tell this to all the young people I train in my trade.
Once you are on the books for a certain paygrade, they will find ways to stop those numbers deviating.
So you can go in and ask for a pay rise every year and get knocked back every year because they can just hire some one else at that starting rate.
So I made it a firm point to find a higher paying employer in the same job category instantly after not getting a pay rise.
This probably only works in industries where you know more than your employer about the job they are hiring you for.
I have had the I'm sorry talks from management a few times, we will pay you more, please don't leave, after I've resigned, but I've always been firm and moved on.
Hopefully it taught them a valuable lesson.
For me now I'm at the point where I'm unwilling to work for anyone anymore, It's easier to run and manage my own business than it is to make money for other people.
Hopefully you can make use of this negotiating tactic when looking for a new job. START HIGH and don't budge.
I had an interview where I refused to take the starting rate and my number was 20% higher than the average rate.
In the negotiation they emphasized they can not accommodate me at my desired salary.
I walked out assuming I wasn't getting the job, a week or so later they called back and offered me the position.
They took too long, I already accepted a job closer to home.
Moral of that extra story is, even when you think the negotiation is over it isn't because they are still looking.
a 4-minute Master Class.
🔥 Fire 🔥
Yes, you should 100% be the one setting the price, but the advice in your video is more about avoiding real price negotiation, which I absolutely think is the right step for a creative to take.
But to add a little nuance to the situation - I would much rather know a team member lost a client, but did everything they could to treat price as an objection like any other, and as such overcome that objection with a conversation, than know we got a client but did so because we immediately dropped price, or employed the higher risk confidence game of "I don't need your business you should use someone cheaper."
Of course It all depends on the client's buyer personality, your reputation, and the situation. And the overcoming objection conversation isn't easy to hone anyway, but I'd at least try it before walking away immediately, which is really the strategy you're advising in the video.
That said I think "walking away" is much less risky for long term business growth than trying to engage in a real negotiation with a superior negotiator. So I guess what I'm trying to say is I completely agree with your way-more-accessible-than-mine advice, lol. But it may help to clarify that this isn't about "negotiating", it's about not negotiating.
New thing learned, thanks for sharing :)
I sat next to Chris Voss in 1st Class on a trip home one night during COVID protocols. I only heard his voice because he had a mask on. I said how is your night going Mr. Voss, and he was like yeah! LOL We blabbed the rest of the flight about sales and negotiations. He was so nice and personable.
Anchoring used well
If I started asking double the price...I will lose all my customers😂😂.... this is just straight bs
Well then you're stuck with customers which aren't able to pay more... Look for new ones?
How about doing it with first time customers? Then, when you have several customers paying the new price, adjust your price to the old customers
Then they don't value you at those prices.
This only works if you already have an impressive portfolio with huge clients, if you act this way as a beginner you'd starve before you find someone who will pay you the price you want
@@amokana This is obviously not true. Sorry but such general statements are nonsense! Even without "an impressive portfolio with huge clients" it's possible to score good prices with great customers. You probably shouldn't start your first job by asking for a huge sum if you don't have anything for the customer to show them WHY they should give you this sum and not hire someone cheaper. Sure, "other clients chose me" is one thing, but there are so many other ways to convince new clients.
If you know your worth and know what you can deliver for the price, then go for it.
I don't have a masterclass on anything, so I'm obviously only talking from personal experience.
The important part is that your price needs to be reasonable and market rate first. Unless your skills are irreplaceable and no one else can do it, your first high price will just deter most of your potential clients away. This is going to happen a majority of your sales as I havent seen any skills where only one person can do it.
Took your advice Chris and it worked! Big thanks to you for teaching me this!
Good job.
WOW! That's really amazing! Give them a number, and they get stuck on the number, good strategy. :-D Will try this with all our new clients. Thank you so much. LOL, a new big fan of #TheFutur ;-) had to get a Telegram bot to start monitoring all your posts and get me notified in my inbox whenever you post a new video. Though it's always 15hrs Late. Will figure out the bug later. Anyways thanks for being here, you can't imagine how many stress and headache your videos had saved me from.
are we 15 hours too late? or a lifetime too early? hmm..
LOL, It's not your fault, it's my Telegram bot that delays the delivery. Good news! it's now just 2hours late. 13 hours solved. Really cool. :-D Thanks for the reply.
Super helpful 🤘🤘🤘🤘🌟🌟🌟🌟🌟🌟🌟🌟
I applied for a engineering job, got to the last stage and was offered an internship for 3months with a conditional 1 year contract after the 3 months. At the same time I got an another offer and when i told the internship company, they mentioned i could check in to see what they can offer. How should i go about renegotiation, if i have already virtually accepted the internship, i haven't signed the contract yet? Their stipend is about 20% the fulltime
Say your number first and say it HIGH!
Damn that’s some good advice!
Love this
This is great in a situation where people are used to negotiating. Unfortunately, many are not used to negotiating and feel uncomfortable with the idea of going back and forth.
I second that. As a designer I will quote a price based on an hourly rate. The client will convince me that I can do it in half the time... then I spend three days and 48 emails doing variations.
I. Just need this.. Thank you so much Chris.... But that thing stuck in my mind.. What If they move on?
That’s okay.
What about a salary negotiation? Is it better to receive an offer first? Or tell them your salary requirements up front? Or give them a range after intense dodging of the question?
When it comes to negotiations be first.
Thank you for this video :) I started applying this technique for the past week based on some of your previous videos and I actually managed to double my rate with some clients :) but some just didn't have the budget for it so I ended up going with their offer, (Which I didn't actually mind because they ended up to be cool clients) but I wanted to ask: What can be done in cases like this? where the client doesn't have the resources? should we just move on to bigger fish or should we make the compromise if we have a good feeling about them?
Move on.
@@thefutur Got it :) Thank you!
The Futur - I like Chris’ no-nonsense answer :)
@@thefutur What is the thought/reason for moving on? Is some work better than no work or is it the illusion of not getting higher paying work? Or is it by standing firm on your rates better for your overall referrals/future prospective jobs
Pure gold
This assumes an uninformed/ignorant customer. The old saying plays true here - knowledge is power. Before any negotiation, be as informed on the market, the rates, the outcomes, and the reputation of the other party as possible. For the buyer, always bid work out to multiple parties. Find the hungry but competent and manage great work at a fair price. Then, reward and bring along the delivery with return work.
In my work, if one comes in high, they are discarded. There is very little in the market that is that unique as to demand a premium. Proven delivery and strong value within or below market rate is the winner.
The customer anchor should be backed like this - "The market for this work is X. This is composed of Y cost and Z profit over this delivery period. What extras are you going to provide to improve this opportunity?"
If I set my number high, $3500 my customer is usually turned off. When I write my actual quotes my high number is right about 3500 but I can get quotes lower than that. I will close based on the middle option.
❤️ Nice one
When you billing a project, you also billing your time. Your time - your life. Do you really want anyone to tell the price? :D If someone is trying to pay less than your price, it’s a life threat :D perfect internet conclusion award goes to me today :D
Your time is your life, my thoughts exactly! Though... does this mean we are seeling our lives away? :))))
Stefano Papaleo If you charge per hour it's more like yes. But when it's payment per project or value based - different story. Anyway, even when you brush your teeth you spend time on it. When you billing your work in right way, you have more freedom. With freedom you just manage your life the way you want.
I wish I leave next door to uncle Chris, like children running to get answer from daddy :). "Education for Life" thanks
Great video!
So what happens when you go first and high, but the client simply declines and finds someone for the money you would have happily done it for, had you not played games?
good question, I want to hear the answer to it
I think you just have to accept it as what it is. You win some you lose some.
@@marvelous1358 Well sure, but how many is "some", and why lose any at all, when you can give a reasonable price instead and get everyone willing to pay it? If the client is going to haggle down from a reasonable price, you're probably better off not doing that job in the first place, right? So I don't see the down side. Yet, here's a guy saying you should overprice your service to preempt the haggle, which may not even come. Seems like a good way to lose clients.
@@oNtuobAwoH the problem with underselling your service will dictate the future of your business. Try underselling your service just to please low balling idiots and see if your business is still around in year 5 and making profit. Business 101.
@@PhiyackYuh Not overselling isn't the same as underselling, my man. What I'm saying is, if you're good at what you do, you know very well what your market price is. So, instead of going high, why not go for fair, make your clients happy with your work and keep them over the long run. Best you can hope for with overselling is to trick a client into a project, or two, untill they realize they could be paying a lower price for the same work.
And you didn't address my question pertaining to the direct losses incurred by overselling and losing clients from the get go.
The only logical reason to go high is if you are overbooked. Which I doubt most people taking courses such as this one are.
Who's that guy with the blurred face? :D
He probably used one of those charcoal masks & after finally pulling it off his face ended up like that. ;)
em curious aswell why so
He's the new NPC meme.
Probably someone staying on a strict employment visa ;)
Timely advice. Thank you!
When you have workshops in LA?!
Check our events page for notification
Anchoring is a legit way.
But what is about competition, and priority of the client if he doesn't need that. He needs obviously but what happens next, a terrible thought he come up with to go to another designer, while he just thinks he doesn't have enough time to negotiate and he have a better choice than me.
Can you guys please give me an insight what to do here?
I am suck on Fiverr, the cheapest market in the world, logo design only for 5 bucks, it really sucks.
I really needed to hear this!!
I always offer my real top number. So if someone ever says "Thats not gonna work can you come up with a better number>?" I say "Sure" and offer an even lower number.
what should u say if ur the customer and wanna get a low price? can someone refer to some videos if anyone knows any good ones please.
Search our role play videos.
Master!
How do you apply this as a consumer?
So useful and helpful also hey :)
I can't imagine this being a strategy for new clients who don't have a relationship with you. What strategy would you use to get your foot in the door if you're just starting out?
The same. You're worth what you're worth whether they know you personally or not. If you call a plumber he gives you his price the same whether he's ever talked to you or not. It is what it is.
@@evocati6523 if you take your car into a garage for an oil change... you know you are going to pay more if you ask them to "do the breaks whilst it's there"
Why do clients expect you to make changes to artwork "while you have it open" for free?
The comment at the end is the vice technique.
Chris, I noticed on Blind.com that your intake form asks people to briefly describe the project and their budget. Doesn't that give them an advantage and invite the prospective customer to anchor a price? If not, why not?
This guys so good at logos he makes a grand an hour? Wtf? I need to find a new career
For coaching. For logos we don’t charge hourly.
Great content, when Mr.Phenom found you. He was impressed
Welcome to the Futur
I don't deal with offers since I started my own business over 20 years ago to get away from the toxicity and politics of corporate America. How would I deal with a lowball offer? I walk away. I also never meet in the middle if an offer comes in close. Do your homework and know going in what you are worth, and any company worth working for will come close, at, or more.
Well yes and no. In the property market sellers who set their price way above the market value may not get any viewings while othe properties at more reasonable prices are snapped up. You have to understand the market you are operating in and study the competition when deciding on your price.
the method in the video works assuming you have the time for clients to meet your demands
Anchoring a like option right now.
Yes!
What the conclusion? That sums up I not speak English well so not understand every point
What did the lady mean by not momentarily?
I don’t get it, can someone explain?
I'm living in a negotiating culture. A common practice here is for someone to say, like, "I don't want this dress for that price. How about you give me a 2nd one for 50% more?" That way they basically get a BOGO half-off deal but the seller is thinking "I got more money right now rather than later." How can we translate this into design work? (Btw, people always bristle at logo costs of $250... even $12 may be seen as too much, especially for online businesses not formally registered because "it's just a project, not a business".)
coming back at this hahahafer 9 months
As a business man, i will not hire this man because he's known with a smooth sales negotiate rather as a designer
Peter, do me a favor and google "Chris Do" and see what comes up.
Damn, I'm selling my business and it's been up for sale for 2 weeks now and after watching this video I realized I've been doing it wrong. I started with a low price and now I'm fcked! What can I do at this point???????
Just want to add, I'M COMPLETELY FUCKED!
🔥🔥🔥🔥🔥!!!!!!