I have a small software company; my main client is a local big electronics retail company.

They used to have many vendors to develop and manage their inventory/sales/bonus campaigns.

Over the years, they have been cutting off vendors, and right now, there are only 2 left: my company and my main competitor.

For 2024, my client plans to finally give all the work to only one vendor, and right now we are working in the biddings and budgets.

I know we are technically more capable, but my competition has ridiculously low prices, I know because they have taken projects from us before, just because of lower prices (some of them ended up being very bad developed).

My options:

  • Bring my prices down, get all of their business, and re-negotiate next year to increase my payment. (or maybe being stuck at those prices for more than 1 year)
  • Keep my prices at current level, or slight increase, given the reliability of our work, and the experience we bring to the table. At the risk of losing all.
  • Any other options available?

This client has helped me grow a lot, and had some amazing years with them, I have the backup money to absorb one year of earning less.

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  • ParkingOven007@alien.topBEnglish
    1·
    1 year ago

    You have to sell this client again. You have to focus hard on the non-technical value that you provide. This is solutions to problems. You will need to dictate the client on the types of problems there are (Google problem theory).

    Secondly “main client” is a problematic statement. You have client-concentration, which is bad for a professional service firm. You need to resolve that.

  • NoRatePayments@alien.topBEnglish
    1·
    1 year ago

    You have to go get new clients. I would not lower prices and if you don’t win this year it seems like you could lowball next year.

  • Change_Request@alien.topBEnglish
    1·
    1 year ago

    If it’s at all possible, sell what makes your worth more. There has to be a difference except price. Is it service, quick response, quality?

    • danibalazos@alien.topOPBEnglish
      1·
      1 year ago

      I was thinking about this, and actually any software company could develop a system like mine, or even better. But they serve a very specific and niche market, and need someone who understands and know how to react to all the daily rare scenarios and cases, without skipping a beat.
      I will make this part of my proposal, as a justification for not dropping prices.
      Thanks for the advice.