Aussie Rules

Don’t you just love it when a client looks at your quotation and asks you for a discount?

It drives me barmy. Always has.

Rather than cave in, try a new course of action:

1. Push for an explanation
The starting point in this whole topic is to find out why you’re being asked to do something for less. Is it because budgets are being cut? Is it because your client is one of those bullies who feels compelled to push for a discount? Or is it because your rate is high when compared to others? Whatever the reason, you need to know and it’s OK to ask.

2. Consider your response
… to the budget cut

If this is the explanation, your response should look at what services you’ll have to cut to achieve the new budget. A good response may be: “I’m sorry your budget has been cut, let’s look at my cost centres and see what areas can be simplified or removed.” Don’t drop your hourly rate. Don’t do more or the same for less.

… to the client who likes bullying suppliers

This signals a non-ideal client, but maybe one that is repairable. Often a client bullies when he doesn’t fully grasp what you do. A good response can be: “The fact you’re asking me to discount suggests you don’t see the full value of my work. Kindly tell me what areas need further clarification and we can discuss this.” Talking in this way opens up extra dialogue and allows you to make suggestions, guarantees or offers that dispel concern while maintaining your rates.

… when your rate is high compared to others

This is the tricky one. Again this points to a client who is not ideal, but probably because you’ve set your sights too low. It could be time to review your positioning and your service offering. For now though let’s assume that to stay with the work you have no option than to consider a reduction in your fees.

In my next post, I’ll look at ways to handle the situation if you reckon that a reduction in fees is required.

Does your job depend heavily on written communications — memos, reports, articles? Do they get the attention and response you believe they deserve?

Why not have your recipients not only read them but look forward to them? It only takes a little extra thought and effort to turn your lacklustre verbiage into star communications — no matter how serious the subject matter.

Just steal a page from the success book of email and direct marketers. According to a study outlined in the Marketing Sherpa newsletter, readers responded best to these three types of articles.

1. Humour — You might consider a funny “10 excuses for being late” as an alternative to the normal “Why is everyone always late for meetings?” memo.
2. Headlines with numbers — Just take a look at Digg — everybody loves lists with titles like “Four Ways to Save Power in the Office” or “The 10 Most Popular Newsletters”.
3. Controversial topics — Now there’s a surefire way to get your missive read!

Try it — see if you don’t get a better response to your communications.

Right now, workplace relations laws in Australia allow employers and employees to make individual agreements known as Australian Workplace Agreements, or “AWAs”. The law prohibits an employer from coercing or applying duress to an employee to enter into an AWA, and the government’s Workplace Inspectors are cracking down on employers who force their employees to sign AWAs.

In a recent decision, the Federal Magistrates Court found a Tasmanian tavern applied unlawful duress to an employee to sign an AWA in order to avoid obligations under the Award. The tavern removed the employee’s regular shifts and told her that she wouldn’t be employed if she didn’t sign the AWA. Staff were threatened that if they didn’t sign the AWA, the tavern would be run like a concentration camp and no benefits such as drinks, cheaper meals and smoko breaks would be provided to the employees. The tavern was hit with a penalty of AU$24,750. The part-owner and manager also received penalties of AU$4,950 and AU$1,980.

This decision followed a Federal Court finding that another Tasmanian tavern had coerced employees into signing AWAs. In this case the tavern was fined AU$170,000 in respect of 10 contraventions.

What factors will be considered in determining whether an employee has been forced to sign an AWA and the amount of any penalty?

• the serious and offensive nature of the conduct;
• a lack of contrition;
• the strain on the employee, particularly given their age, sex, position, reliance on income and employment status; and
• the need for general deterrence and the protection of young people.

Managers need to be aware of their duties and obligations under the law as the penalties don’t stop with the employer.

Environment and landscape designers have a lovely term for pathways that walkers create when they take shortcuts across parks and the like. They call these tracks “desire lines”.

I don’t know if a technical definition exists, but if it did it would read something like:

desire line: An informal, preferred path used to get from one location to another rather than using the official route.

So what’s all this got to do with business? Quite simply this: if you have procedures or policies that people are not following — “pay within 7 days”, “Read and sign this three-month contract”, as examples — just consider the “desire line” carefully before you go beating up your clients and customers.

It may just be they are trying to tell you something. Something you’d do well to hear.