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Negotiating Against 'It's Cheaper Now'

Pricing judgement when the market has decided your output is commoditised, whether you are an employee or independent.

My Career Crusader7 min read717 words

you are an employee or independent.

At some point you will be told, directly or implicitly, that what you do is worth less than it was. A client pushing on a rate, an employer holding a band flat, a prospect mentioning that they could get most of this from a tool. Some of the time they are right, and the first requirement is being honest with yourself about which situation you are in.

Work out which claim is being made There are two very different assertions hiding in "it's cheaper now."

The first is that the production is cheaper, which is usually true. Generating the document, the design, the analysis, the code takes a fraction of the time it did. The second is that the whole thing is cheaper, which is usually false, because the production was never the entire value. The value included knowing what to produce, whether it was right, and who was accountable when it was not. Most negotiations go badly because the person defends the wrong claim. They argue that production is still hard, which everyone knows is not true, and lose credibility for the rest of the conversation. Concede the first point immediately and completely. "You're right, the drafting is much faster than it was — I've cut my own time on it substantially." Then move to what is actually being bought.

What is actually being bought Being wrong is expensive and you make it less likely. This is the strongest argument available and it is quantifiable more often than people think. What does an error in this work cost — in rework, in

liability, in a lost customer, in a regulatory finding? Your value is a reduction in the probability of that, and it does not fall when production gets cheaper. If anything it rises, because more output means more surface area for errors. Someone has to be accountable. A tool cannot be. A person can, and that person carries insurance, reputation and consequences. Organisations pay for this specifically, and it is worth naming rather than assuming it is understood. Knowing what to do is separate from doing it. The choice of approach, the judgement about what the situation actually calls for. Cheaper production makes this more valuable, not less, because the cost of executing the wrong thing quickly has gone up. Availability under pressure. Being reachable when it goes wrong at an inconvenient time. This is worth a great deal and is almost never priced explicitly.

If you are billing time, this negotiation is unwinnable, because the honest number of hours is falling and your client can estimate it. The move is to price the outcome or the coverage rather than the hours. A fixed fee for the deliverable, a retainer for availability and accountability, a rate tied to the value of what is being protected. This is not a trick; it reflects what actually changed. Your input dropped and your value did not, and time-based pricing cannot express that. For employees the equivalent is shifting the conversation from workload to ownership. "I'm now covering the exception queue and signing off the routine cases" is a different negotiation from "I'm still producing the same volume of reports."

Sometimes the work genuinely is worth less. If what you sell is production, cleanly specified, low accountability, no relationship attached, then the market is repricing it correctly and no framing will hold the number. Recognise that situation rather than fighting it. The answer is not a better negotiation; it is to change what you sell, which is what most of this collection is about. Spending two years defending a price on work whose value has genuinely fallen is worse than spending six months moving.

The practical floor One tactical note. Do not accept a reduction on the argument that it will lead to more volume. It reliably does not, and it resets the reference price permanently. If you are going to take less, take less for less scope, so the unit price holds. And know your walk-away number before the conversation. In a market where the other side believes your work is commoditising, the willingness to decline is most of your leverage, and it only exists if you have worked out in advance what you will do instead.

that has not got cheaper.

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