How to handle a client asking for 50% off
DA—009
Let me be completely clear - a client can ask for a discount, and it’s not necessarily because they don’t value your work; there are plenty of other reasons actually.
The ultimate goal is to find a respectful, optimal partnership model that maintains your creative advantage. When a client asks for a discount, that’s your cue to create leverage. Every single paragraph in this contract is an opportunity to negotiate.
If they want a price drop, you gain advantage by taking something back. For instance, you could retain control over unused assets so you can resell them later. If they’re happy with that, it’s a genuine win-win. If they aren’t, then they need to pay the full standard price, just like they would when buying a loaf of bread at the shop.
Or take another scenario… perhaps they only need a logo for a promotional campaign lasting a few months. When they ask for a discount, your leverage comes from writing a clause into the contract stating that after a year, the logo rights automatically revert fully to you, allowing you to resell it.
When a massive brand comes to you wanting a logo in perpetuity, that’s top-tier work, because you need insurance in case they get sued. If a small business gets sued, the fallout is much smaller – they might just need to make a few minor stylistic tweaks, which costs them far less. They don’t need to pay for your insurance overheads because their financial risk is lower, so, ultimately they’d have to deal with the mess. Write it up!
You can shuffle these elements around however you like. The point is – leverage!
Leverage is all about creating a balance. If you push it too hard, the client will see you as a distrustful service provider. If you don’t use enough of it, you’re in danger of sliding into modern slavery. Ultimately, both extremes are fine as long as both parties are fully aware and completely on board. There is no right or wrong here, only a mutual partnership between two sides.
By the time you get to the bottom of this contract, you’ll probably realise why global brands sign off on seven-figure contracts just for logo design. Keep that in mind the next time you’re tempted to criticise the cost of the Pepsi rebrand.
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Warning! Substack started fetching entire captions from Instagram, which makes these newsletters longer. But at least you can stay on the platform.
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