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3 Ways Staffing Agencies Can Overcome Pricing Objections from Clients

One of the most frustrating things about running staffing agencies is the pricing objections that some clients will come to you with. Knowing how to overcome these objections and show the client why your agency is the best one to help them is vital if you’re going to be successful, but it can feel like hard work. 

It’s not impossible, though. There are several different ways that pricing objections can be handled and – crucially – overcome. Read on to find out what some of the area. 

Staffing Agency

Fee Agreements 

One of the best ways to overcome pricing objections is to put a fee agreement in place. Essentially this means that the client will pay the recruiter a percentage of the candidate’s annual salary only if they prove to be suitable for the job at hand. If no candidates are deemed eligible, the client can walk away without paying anything, even if they have interviewed several different potential employees. 

The beauty of this kind of fee agreement is that there is no risk to the client. If staffing agencies can’t find a candidate that works, they won’t owe anything, and they are free to turn to the next agency on their list. 

There are a few issues with this agreement, however. One is that the client could terminate the agreement and then surreptitiously hire a candidate the staffing agency introduced them to – a contract expressly forbidding this would be required. The other issue is that, even if a suitable candidate was found, the client might then find an issue with the amount they have to pay. Although they will be locked into this agreement, this causes delays and aggravation that no one needs. 

Prove Your Quality 

Whether or not the free agreement causes issues, another way to overcome pricing objections for staffing agencies is to show the client what you can do better than others; in other words, why they should use your agency – and pay for the privilege – over and above anyone else, including anyone cheaper. 

As we all know, quality costs money, and the more quality you can show your clients, the more they will be willing to pay. So ensure you are members of all the accredited organizations for the industry, for example, and ensure excellent reviews and testimonials show why you are the best. 

The more you can put in place to prove that you do more for your client, that you have more experience, that you are experts in this area, or that one, the happier they will be to pay the fees set. 

Solve Problems 

Any good business is going to solve problems for their clients. So what problems do you solve? If you can make it clear that you are solving problems – perhaps problems that your clients hadn’t even considered yet – your fees will be seen as much more reasonable. 

Staffing agencies can use this idea to set up your agency in a new niche that solves one unique issue. 

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