Just certified and I have my first prospect — a small chain of dry cleaners in Madison served by MG&E. The owner is interested but hesitant because I have no track record. I'm thinking of offering a 25% contingency instead of the standard 40% just to get my first engagement under my belt. Is discounting my rate a good strategy for the first client or does it set a bad precedent?
First client — should I lower my rate to get the experience?
I discounted my first engagement and I don't regret it. Getting a completed audit with a real recovery on your resume is worth more than the 15% you're giving up. But I'd frame it differently — don't say 'I'm discounting because I'm new.' Say 'I'm offering a promotional rate for my first engagement in the Madison market as I build my local practice.' Sounds more professional and gives you an exit from the discount for future clients.
I went the other direction and charged full rate from day one. My thinking was that if I'm good enough to be certified then I'm good enough to charge the professional rate. But I had a harder time closing that first client. Looking back, a small discount to get the first win might have saved me a month of prospecting. It's a tradeoff.
Both perspectives have merit. A modest discount for your first engagement is acceptable if it helps you get started. But don't go below 30% — anything lower and you're undervaluing the profession and training. Greg's framing advice is smart: position it as a promotional rate, not a discount for inexperience. And make sure your engagement agreement states the rate clearly so the client doesn't expect the promotional rate forever. Your second client should be at your full rate.