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As a startup should you offer a better ‘deal’?

14th July 2017

Most larger businesses will believe they can strike a better deal with you simply because you’re a startup and you need the revenue. It’s a common dilemma for new businesses and one that can be hard to push back against.

Although pushing back might be the only option in some cases, one could also look at this from a different perspective and instead ensure that if you offer any kind of ‘deal’, those customers ‘pay back’ by being advocates for your startup business and give you referrals and leads etc. which (if they are the right person) could be lucrative.

That said, as a start-up you should also be upfront about the ‘deal’ in the very beginning when giving any kind of discount, as well as insisting that you get paid on time, or even up-front (hugely important for the startup in terms of cash flow). The point is, if there is a deal to be had make sure they meet your terms too – it shouldn’t be a one sided arrangement – it’s give and take on both sides

It’s worth bearing in mind that the customer will be wanting to barter because they will need to prove to their bosses/peers that they got a great deal for changing to the startup with a better product or service, with new features and benefits versus the current supplier. There always has to be a reason for change and a great deal is one way of speeding up the process.

However, you also have to be prepared to walk away from a customer if they are asking you to go lower than your bottom line. Always leave the door open so the customer knows you have reached your final price. Looking for customers who are prepared to support your startup is the way forward; the best relationship is the one where it is fair on both sides.

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