Hey startups community,
I find myself in a bit of a bind and could really use some advice. I recently closed a business deal, only to realize afterward that I severely underpriced my services—about 25% of the market rate. The price negotiation is already a done deal, and now I’m feeling pretty awful about it.
Has anyone been in a similar situation? How did you handle it without damaging the client relationship or your business’s reputation? I’m worried that this might have long-term consequences, and I’m not sure how to navigate the aftermath.
Should I approach my client and try to renegotiate the terms, even though we’ve already agreed on a price? Or is there a way to make up for this mistake without jeopardizing the entire deal? Any advice on damage control and salvaging the situation would be greatly appreciated.
I know I messed up, and it feels like a major setback. If you’ve been through something similar or have insights on how to bounce back from such a situation, please share your experiences. Thanks in advance for any guidance you can provide—I could really use some support right now.
Good thing or bad thing – the agreement hasn’t been signed yet. So, no legal obligations exist yet. Just negotiations have crossed the pricing part, and agreements are expected to be signed before the middle of next week.
I could deliver at the current price; however, I’m undercutting myself by a whopping margin. Not just 30-40 percent, but by 75 percent.
I got to realize about our price mismatch because of a seemingly simple difference between how we calculate our pricing vs theirs. We used an in-house model of cost calculations; however, that’s different when they (the client) pitched to us with their own simple solutions. And we thought it’s easier to go that way. But when we compare our pricing to the existing clients, putting in the backdrop of their simpler pricing, we realized we fucked up big time.
If you’re past the pricing part of the conversation, add into the conversation that you expect to know the expectations and for the client to be a reference in the future. If you’re a startup that can be more valuable than the money you’re missing out on
Good insight. Thanks
You haven’t signed anything. It’s not too late. It’ll be very very uncomfortable and you may lose the deal, but then you’re not stuck in a commitment and can move on. Perhaps find a middle ground. Time-box the deal for the first few months and set a mutual out and for renegotiation.
That’s a good point. I’ll definitely keep in mind for the next meeting this coming Monday.
If nothing is signed, it’s not a deal yet. Everything is still malleable. Bring it up now and make changes or suffer the consequences.