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How to Ask Your Client for a Bigger Budget

by | Mar 12, 2021 | Owner Issues, Top Echelon Blog

You make money by getting clients to pay you for your recruiting services. At some point, you might discover that you need to ask a client for more money.

There are many reasons you might need to ask your clients for a bigger budget. Your client might change who they want you to look for. For example, they might change the requirements for the candidates, meaning you have to start your search process over.

The candidates might be more difficult to find than originally expected. The search process might take a lot longer than expected. And, you might need more money to aggressively advertise the open position on job boards and social media sites.

Or, the client might be extra needy. They might want extra check-ins, reports, and services. When this happens, you might deserve a greater client budget.

You might also need to raise your rates for recurring jobs. For example, you provide regular contract staffing services to a client. After a while, you decide to raise your recruiter pay structure for that particular service. You will need to tell your client about your increased rates.

But, talking to clients about getting paid more can be difficult. You need to know how to talk to your clients about money gracefully.

How to ask client for budget increase

You can learn how to get paid more by your clients. Use these tips when you need a bigger budget to recruit star candidates.

Have confidence

If you’re going to ask your client for more money, you need to be confident. If you aren’t confident, you may come across as weak. Your client might try to push you around and get you to back down from your request.

You cannot be shy in this situation. Your recruiting business needs money to run. And, you deserve the extra money because you are doing more work.

Be prompt

Don’t surprise your clients with a pricing change or request for more money. You shouldn’t wait until you send them the final invoice.

Give your clients plenty of notice about the increased bill. Tell them as soon as you realize you will need to charge more. For example, you place many candidates over time for a client. They hire you to place another candidate. You recently raised your rates, so you should tell the client at the very beginning of the process. Don’t let the client think they still get to pay the old rates.

If you delay in telling the client about the increase, you might lose your client’s trust.

Explain the reason

You can’t expect your client to accept the price change without some explanation.

First, explain what was covered in the original quote. Then, tell them what you need more money for. Give specific reasons. Finally, tell them how much extra you will charge.

If a client is argumentative, you can point back to your contract. Remind them that the original budget only applied to certain services, and anything extra will cost more.

In many cases, the client can choose not to pay more. But, remain firm that you won’t provide more without a bigger budget. For example, you might say that you are willing to work within the original budget, but you will not be able to provide the extra data they requested. You might try working within your client’s hiring budget by dropping other services to accommodate the added services. Just make sure your client approves the changes.

Document the change

Clearly and thoroughly document any changes you and your client are making. Record how much the client will pay you and what services you will provide. You might amend your contract, or you might draw up a new contract.

Each party should sign the new agreement. And, each party should keep a copy of the signed agreement.

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