A Hard Lesson on Pricing: What I wish I had done differently with a client last week

How to Handle Discounts in Consulting Without Regretting It Later

Today, I spent hours negotiating with a client, explaining why our pricing had changed and justifying all the extra value I had provided over the past months. This experience reinforced an important lesson for anyone offering services—consultants, agencies, freelancers, and anyone in client work:

If you’re offering a discount during your pitch, be upfront about it.

It’s natural to want to sweeten the deal to close a client, especially in the early stages of a relationship. But if you decide to give a discount, make sure to:

1. Clearly state that you’re offering a discount

Don’t just lower the price and hope the client notices your generosity. Explicitly mention that you’re discounting the price and explain why.

2. Show real pricing from similar projects

Many clients assume that initial pricing is arbitrary. If you can, present real numbers from past projects to demonstrate that the discount is legitimate—not just a sales tactic.

3. Highlight what you’re including for free or at a reduced rate

The biggest mistake is offering extra value without documenting it. If you’re overdelivering, make it known. This sets the right expectations for future discussions about pricing adjustments.

We Train Clients to Expect a Certain Price—That’s on Us

One of the biggest realizations I had today is that clients are not to blame if they struggle to understand a price adjustment later on. If they get used to a certain level of service at a discounted price without knowing it, of course, they’ll find it difficult to justify an increase down the line.

This is a mistake we, as consultants and agencies, often make. We assume the client knows they are getting extra value, but if we never explicitly state it, they will naturally believe they are simply paying the standard rate. The responsibility is on us to set the right expectations from day one.

So when pricing inevitably changes—whether due to inflation, added expertise, expanded scope, or increased operational costs—it won’t come as a shock to them.

Your Discount Will Shape Future Referrals

Another key reason to be upfront about discounts? Clients will refer you to their friends and colleagues, and those referrals will come in expecting the same pricing.

If your client wasn’t aware they received a special rate, they’ll likely share your price as if it’s your standard rate. This creates a difficult situation when new referrals arrive expecting the same deal, and you suddenly have to explain why they don’t qualify for it.

On the other hand, if your original client understood they were receiving a unique discount, they are far more likely to set the right expectations when referring you. This puts you in a much better position to negotiate with their referrals and justify your standard pricing from the start. Instead of being in a defensive position explaining a price increase, you can reinforce that the previous client received a special deal and ensure new clients enter the conversation with the right mindset.

Pro Tip for Companies Working with Agencies & Consultants

If you’re hiring an agency or consultant, here’s a useful exercise to make sure you understand what you’re getting:

• Ask about potential price adjustments upfront

• When do they typically review or change pricing?

• Do they adjust for inflation, team seniority, or scope changes?

• What factors might influence a future increase?

• Clarify what’s included in your scope and what’s considered “extra”

• Are they providing additional value that isn’t reflected in the standard rate?

• Is there anything they’re offering at a discount that may change later?

• Understand the impact of referrals

• If you plan to refer them to others, ask: “Is this a special rate for me, or is this your standard pricing?”

• This will help you set the right expectations when introducing them to your colleagues.

The Key Takeaway

Whenever you go the extra mile for a client, make sure they know:

• What you’re giving them at a reduced rate

• What you’re including that you normally charge for

• What your actual pricing looks like for similar work

• When pricing adjustments might happen and why

• That this is a special deal, so they don’t accidentally set false expectations when referring you

This will make future pricing discussions much smoother. Clients won’t feel blindsided by adjustments, referrals won’t come in with the wrong assumptions, and agencies won’t have to justify price changes after months of overdelivering.

Next time, I’ll be setting these expectations upfront.