Restaurant client rejected our proposal

Started by Marcus J. — 8 years ago — 0 views
Spent time analyzing a restaurant in Baltimore - BGE bill averaging $3,100/month. Found they were on wrong rate schedule and had some demand charge issues. Estimated $8,400 annual savings. Owner said our 50% contingency fee was too high for "just changing a rate." How do you handle pushback on fees for small commercial work?
Marcus, restaurant owners can be tough. They operate on razor thin margins and see every expense as coming out of their pocket. I usually break down exactly what the rate change involves - applications, documentation, follow-up with utility, ongoing monitoring. It's not just filling out a form.
Some clients just don't get the value proposition. You probably dodged a bullet - restaurant clients who nickel and dime on the front end usually become problem accounts later. Plenty of other small commercial prospects who understand professional services aren't free.
You're both right. The owner seemed to think he could just call BGE and handle it himself. Maybe he can, maybe he can't. Either way I'm not doing detailed analysis for free anymore on small accounts. Lesson learned.