How to Negotiate with Clients: Stop Being a Pushover and Start Getting Paid What You're Worth

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Three weeks ago, I watched a perfectly competent tradesman practically hand over his firstborn child to a client who was nitpicking about a $200 variation.

This bloke had done everything right - quality work, on time, professional service. But the moment the client started that familiar whinge about "unexpected costs," he folded like a cheap tent in a Brisbane storm. Dropped his price by 30%. Just like that.

It made me want to shake him. Because here's what I've learnt after seventeen years of watching Australian businesses get steamrolled by difficult clients: most of us are absolutely shocking at negotiation. We'd rather eat glass than have an uncomfortable conversation about money.

But here's the thing that might surprise you - good negotiation isn't about being aggressive or manipulative. It's about respect. Mutual respect. And if you're constantly caving to unreasonable demands, you're not showing respect for yourself, your business, or frankly, your client either.

The Aussie Disease: Terminal Agreeableness

Let me tell you something controversial. Australians are too bloody nice when it comes to business negotiations.

I know, I know. We pride ourselves on being straight shooters, no-nonsense types. But when push comes to shove, most of us would rather lose money than risk someone thinking we're "difficult." We've turned conflict avoidance into an art form.

This doesn't serve anyone well. Not you, not your family who depends on your income, and certainly not your clients who end up with unrealistic expectations about what things actually cost.

The construction industry is particularly bad for this. I've seen contractors agree to ridiculous timelines, absorb costs they shouldn't, and work weekends for free just to keep clients "happy." Then they wonder why their margins are paper-thin and their stress levels are through the roof.

Here's a hard truth: clients don't actually respect businesses that can't stand their ground.

They might take advantage of it, sure. But deep down, they know something's not right when a professional immediately folds on their pricing or terms.

The Foundation: Know Your Worth (And Mean It)

Before you even think about sitting across from a client, you need to get something straight in your head. You're not doing them a favour by being in business. You're providing a service that has genuine value.

I learnt this the hard way about eight years back. Had a marketing client - lovely people, family business - who kept asking for "just one more small change" to their campaign materials. Each change took hours. But I kept saying yes because I didn't want to seem inflexible.

Six months later, I'd basically redesigned their entire brand identity for the price of a basic logo. My fault entirely. I'd trained them to expect unlimited revisions because I never set boundaries.

That's when I realised something crucial: effective negotiation training isn't just about tactics. It's about having a clear understanding of what you bring to the table.

Here's what changed everything for me:

Start with your non-negotiables. These are the things you absolutely won't budge on. Maybe it's your payment terms. Maybe it's the scope of work. Maybe it's your minimum project size. Write them down. Seriously, get a pen and paper right now and write them down.

Understand your costs - all of them. Not just materials and labour. Your time, your expertise, your insurance, your equipment depreciation. The whole lot. If you don't know what it actually costs to deliver your service, you're flying blind.

Practice saying no. Sounds simple, but it's not. Most of us have been conditioned since childhood to be accommodating. You need to retrain yourself. Start small - say no to things that don't matter. Build up the muscle.

The Art of the Professional "No"

There's a massive difference between saying "No, absolutely not" and saying "That won't work for us, but here's what we can do instead."

The first approach burns bridges. The second one opens doors to better solutions.

I remember working with a client in Perth who wanted a complete website rebuild but had a budget that wouldn't cover a decent business card design. Old me would have either walked away or tried to squeeze an impossible job into an impossible budget.

Instead, I said something like: "I understand you're working with budget constraints, and I respect that. A full rebuild isn't viable at that price point, but we could start with optimising your existing site and plan a phased approach over the next year."

Guess what happened? They loved the idea. We ended up with a longer-term relationship that was more profitable for me and delivered better results for them. Win-win.

The key is to always have alternatives ready. Don't just shut doors - open different ones.

Reading the Room: When They're Not Really Negotiating

Here's something they don't teach you in business school: sometimes clients aren't actually negotiating. They're just seeing how much they can get away with.

You can usually spot these types pretty quickly. They'll make demands that are completely unreasonable, then act surprised when you push back. They'll compare your prices to someone who's clearly cutting corners or operating out of their garage. They'll use phrases like "industry standard" without actually knowing what the industry standard is.

These aren't your people. And that's okay.

I've got a mate who runs a professional sales training business in Sydney, and he puts it perfectly: "Your ideal client is someone who values what you do enough to pay properly for it."

Chase the wrong clients and you'll spend your whole career stressed, underpaid, and wondering why you got into business in the first place.

The Power of Preparation

Most people think negotiation happens in the meeting room. Wrong. Real negotiation happens in your preparation.

Before any significant client discussion, I spend time thinking through scenarios. What's their likely opening position? What are they really trying to achieve? Where can I be flexible without damaging my business? What alternatives can I offer?

This isn't about scripting every response. It's about going in confident rather than reactive.

Research their business. Understand their challenges, their industry, their competition. The more you know about their world, the better you can position your solutions.

Prepare multiple options. Never go in with just one proposal. Have a premium option, a mid-range option, and a basic option. Let them choose. People like having choices, even if they end up picking the middle one 70% of the time.

Know your walk-away point. This is critical. At what point does the deal become unprofitable or unreasonable? Know this number before you sit down, not after you've already committed to something stupid.

The Australian Way: Direct But Respectful

We're lucky in Australia. Our business culture generally appreciates straight talk. Use this to your advantage.

You don't need to dance around issues for twenty minutes. You can say things like: "The timeframe you're suggesting won't allow us to deliver the quality you deserve" or "That budget would require us to cut corners we're not comfortable cutting."

But - and this is important - you say it with respect for their position too. Most clients aren't trying to rip you off. They're just trying to get the best deal they can, which is perfectly reasonable.

The magic happens when you can have these conversations without anyone feeling like they're under attack. It's not you versus them. It's both of you trying to find a solution that works.

When Things Go Sideways

Even with the best preparation, some negotiations just don't work out. That's normal. In fact, if you're winning every negotiation, you're probably not pushing hard enough.

I had a potential client last year who wanted a complete training program delivered to their Melbourne office. Good company, interesting project. But they wanted everything done in half the usual timeframe, for 60% of the standard rate, with additional follow-up sessions thrown in for free.

When I explained why that wouldn't work, they suggested I "lacked flexibility" and threatened to take their business elsewhere.

So I wished them well and meant it.

Six months later, they called back. Turned out the cheaper option had been... well, cheaper for a reason. We ended up working together on their terms, at my rates, with a timeline that actually made sense.

Not every story ends like that, obviously. But the ones that matter usually do.

Building Long-Term Relationships Through Better Negotiation

Here's something most people get backwards: good negotiation actually strengthens client relationships rather than damaging them.

When you're clear about your boundaries, fair in your pricing, and professional in your communication, clients know exactly what they're getting. No surprises. No hidden costs. No disappointed expectations.

I've got clients I've been working with for over a decade precisely because we established clear, fair working relationships from the start. They know my rates aren't negotiable, but they also know I'll always deliver exactly what I promise.

That's worth far more than any short-term discount.

The businesses that constantly undercut themselves and accept unreasonable terms? They're the ones with high client turnover, constant stress, and razor-thin margins. They think they're being "customer focused," but they're actually creating unsustainable relationships that benefit no one.

The Reality Check

Look, I'm not suggesting you become some sort of corporate shark who squeezes every last dollar out of every interaction. That's not sustainable either, and it's certainly not the Australian way.

But I am suggesting that you start treating your business like... well, like a business. You're not a charity. You're not someone's mate doing them a favour. You're a professional providing valuable services that should be compensated fairly.

The tradesman I mentioned at the start? I ran into him again last month. After our conversation, he'd started having proper discussions about pricing and scope before jobs began. His stress levels had dropped. His profits had increased. His clients, it turned out, respected him more, not less.

Communication skills training helped, but the real change came from shifting his mindset about what negotiation actually means.

It's not about winning or losing. It's about finding solutions that work for everyone involved.

And sometimes, the best solution is realising you're not the right fit for each other. That's okay too.

The clients who are right for your business will appreciate your professionalism, pay your rates without drama, and refer you to other good clients. Focus on those relationships, and let the rest go.

Your future self will thank you for it.