I recieved the same email last nite and didn't respond, in fact I deleted it.
Their southern California office has sent me 3 requests so far this year to lower my prices. The first email said they no longer needed all the copies so I lowered my prices a tiny bit, and it was the ONLY reason I did so. The last 2 times I flat a-- told them no.
In fact I called one of my contacts out there and spoke with her about it and she told that I would continue getting the same volume of work whether I lowered my prices or not because no one could beat my turnaround time. And the truth is I haven't been getting less work.
If we all stick together and refuse to lower our prices they won't have a choice but to the pay the fee's we charge. I give them great service and deliver an excellent product, my fee's are not outrageous and I refuse to compromise.
They are a big client for me too, not 40 % of my business, but I am not going to have clients tell me what I can and cannot charge, that's completely off the wall.
I know of no other industry where clients or "consumers" can make such demands, do you? Can you imagine calling your cell phone company and making such a demand? They'd hang the phone up on you or be laughing so hard they'd be wetting themselves!
So stick to your guns and don't drop your prices, its a ridiculous and outrageous request. You will still get the same amount of work!
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