Dealing with the haggle culture in Singapore

[synergyap]

Looking to expand our consulting services into Singapore. In a number of meetings with potential customers we get a lot of pushback on our pricing with customers assuming they can negotiate us down 20, 30, 40 percent or more off our posted service prices. Our services are very specialized and our staff are world-class experts so we're not used to having to discount off what we believe are fairly priced rates.

Is there a way to maintain premium pricing in this environment or should we readjust our expectations on profitability in this market?

[sundaymorningstaple]

You do like all businesses do here. Up your prices 20 or 30% so you can give a "bigger" discount. Sad to say, it's just the way it works here. They get the illusion of saving money, you get the illusion of being magnanimous. Win-Win situation.

[ksl]

I was looking at an embroidery piece in a frame, it hadn't been done. The price was 150 sing$ the same in the west would not be more than 10 to 15 pounds...SMS is right, you need to make them feel, they are getting a bargain..

I was asked also by my brother in law, how much i thought he paid for his furniture, it's very easy to guess in Singapore, they only know 1600$ for hifi cabinet.. which would have been 300 to 400£ in UK max, for the same quality in teak. The workmanship is not what you call pro standard, but its good, but know way can one justify 1600$, the prices are all hyped to the heavens. Like the antiques one needs 75% off to justify the value, because most are made up in China for the market and are not real antiques.

[synergyap]

Thanks for the response folks. I understand the inflation of prices is very common. Is this true even of professional services like lawyers, doctors, and IT consultants?

[jpatokal]

As they say back in my bit of Angmohland, the fool is not the one who sells, the fool is the one who pays the price...

Lawyers and doctors usually have fixed prices, although the price range for both is pretty extreme. Most IT companies here work on a per job basis though, not per hour.

[haggle]

I'd say readjust your expectations on profitability.