If you’re in a service or client-based business, you know that it’s tempting, from time to time, to lower your rate. On a rare occasion, you may even be tempted to do something for . . . free <gasp>.

You have good intentions. In fact, you’re probably telling yourself that this will pay off in the long-term. That we’ll give a little now, so we can get a little more down the road.

Sometimes you face this temptation when courting a new client. You want to be sure you remain competitive, so can close the deal.

Other times, this situation arises when you get the sense that an existing, valuable client may be looking at other firms. You want to give them reason to stay, again, so you can make more money on the back end.

There’s nothing inherently wrong with lowering your rate, or doing work for free. But, if you’re doing it in order to “win” down the road, there IS a problem . . . tomorrow is never guaranteed.

The client may never allow you to raise your rate. In fact, they may ask you to lower it again later, or do more work for free.

The client may find another vendor. They may bring your work in-house. They may send work overseas. Or, they may simply close.

The future is uncertain. Don’t bet on it.

Posted via email from themooring’s posterous