You’re Making A Big Mistake

Are you making the mistake of charging too little for your recruitment services?


I speak to so many recruiters who under-value their service.

For example, last week a recruitment business owner told me that he was planning on offering an executive search service but that he could deliver half the time and at a lower fee. 

I asked him “why would you charge a lower fee for the same service level you were providing when you worked for a bigger search firm?” 

His answer was, “I don’t have the same overheads of a big search firm.  So I don’t need to charge the same in order to still make a good profit.” 

I think that’s a big mistake, and I told him so.  Why would you charge less? Think about it. The fees that we charge our clients are not related to how big our overheads are.  The fees we charge are in relation to the VALUE that the individual we’re placing is bringing to their next employer! Whether you work from home or whether you have fancy City offices is irrelevant. 

I believe in premium pricing – charging towards the top end of the market you’re in.  You never want to compete on price. Not only are you losing out on revenue, but you’re positioning your brand as a “cheap/low quality” instead of “premium / top quality” service.

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