How to defend your fee without discounting
You don’t defend your fee at the moment the client asks for a discount, but in everything that comes before. If you first uncover the client’s needs, agree on the process and only then name your terms, you rarely have to drop your price.
Gauthier · 21 October 2026 · 7 min read
The meeting was going well. The client told you about their team, about the vacancy that’s been open for four months and about the two agencies that mostly sent them CVs. Then you name your fee, and they lean back: “That’s expensive. Can’t you knock a bit off?”
Every recruiter gets that question. The difference between those who hold their fee and those who drop it rarely lies in that one answer. It lies in everything that came before: who you talked to, what you asked and when you put your terms on the table.
Why a discount costs you more than it brings in
A discount feels like a small concession to land the deal. Run the numbers and it isn’t. If you give 10% off every fee, you need 11% more placements for the same billing. With a fee of €17,500 and €300,000 billing, that’s around two extra a year, with all the hours that go with them.
There’s a less visible cost too. Drop your price once and you teach the client that your price is negotiable, and they’ll ask again next time. And if you work with clients on different terms, sooner or later you’ll be tempted to send your best candidate to whoever pays most first. The same terms for everyone keep you honest, towards your candidates too.
Australian recruitment trainer Greg Savage has been saying it for years: if you find a candidate the client can’t find themselves and guide the process through to signature, you deliver something that makes the fee pale into insignificance. The problem usually isn’t your price, but that the client doesn’t see your value yet.
The method: how to hold your fee
Seven steps, from the first meeting to the signature.
01Talk to the line manager, not just HR or procurement
The line manager is your candidate’s future boss. They feel every day that someone is missing, they know what the job really involves and they see your value faster. That’s also why they negotiate less hard on your fee. HR and procurement compare prices more often than results. If you have to work through HR, respect that, but ask for the line manager to join the intake meeting.
02Uncover the needs first
Never start with your terms. First ask how the company is set up, how it recruits itself, how previous collaborations with agencies went and what went wrong then. Ask about the salary range for the vacancy too: there’s always a ceiling, even if the client says at first that there isn’t. What you hear here, you sell back to them later.
03Agree on the process
Spell out how the collaboration will work: the line manager sits in on the first interview, the dates for the second round are fixed, you get feedback within two days and the offer goes through you. A client who commits to a process takes your work seriously. And a smooth process is exactly what they were missing with other agencies.
04Show what you’re worth, tailored to their needs
Present one or two relevant candidates, anonymously, and explain why they fit. Link your approach to what the client just told you: no pile of CVs, but candidates from your own network who aren’t actively looking. Don’t promise more than you can deliver, because that always comes back to bite you.
05Explain your terms briefly and confidently, then stay quiet
Three things count: your fee, the guarantee period and the payment term. Explain how you calculate the annual salary your fee is based on, and that you only invoice once the candidate starts, because you carry the risk during their notice period. Then you stay quiet. If you fill the silence with explanations or excuses, you give the client room to negotiate.
06Get it signed before the first interview
Only send a candidate to an interview once the terms are signed. Otherwise you end up negotiating at the end, with the candidate caught in the middle. That’s unprofessional for everyone, and your candidate pays the price if you can’t reach an agreement.
07If the client still wants to negotiate: give value, not a discount
Never be the one to hint that your price is flexible. If the client asks for a discount anyway, show them what extra they get rather than how much less they pay. If you do want to give something, ask for something back: exclusivity or a retainer on a retained search. A concession with nothing in return is just a discount.
What to say to the four objections you hear most often
Let’s not be naive about it: some clients keep negotiating, whatever you say. With most, a calm, honest answer helps. These are the objections you hear every week.
“You’re more expensive than other agencies.”
First ask who they’re comparing you with, and how that collaboration is going. It often turns out that the cheaper option mostly sends CVs. Explain what you do differently: a dedicated niche, your own network and candidates you screen for motivation, so they stay too. A good hire is an investment; a cheap hire who leaves after six months costs more.
“Can’t you give us a discount?”
Be honest that you’d rather not give a discount, and say why. You work with a limited number of clients in your niche, all on the same terms, so you never have to favour one company over another. That way you also stay objective towards your candidates.
“We need a longer guarantee period.”
Explain that it’s a shared risk. You make sure it’s the right candidate and screen them for motivation and expectations. What happens after the start is out of your hands. If the client has doubts about a candidate, you advise them not to sign and you keep looking.
“We’d like to pay in instalments.”
Remind them that you only invoice when the candidate starts, so they know when the invoice is coming. If it’s still a problem, you can consider invoicing part on signing and the rest at the start. Don’t offer that yourself.
An example
Say a construction client has been looking for a project manager for four months. Two agencies sent twelve CVs between them, and nobody got through the second interview. You ask why, and hear that the candidates didn’t know the job and that feedback took weeks.
You suggest the line manager joins the first interview, you agree on feedback within two days and you discuss two candidates from your network who aren’t on job sites. Only then do you explain your terms, and you stay quiet. If they still ask for a discount, you’ve already made your case: they’re not paying for CVs, but for a project manager who stays.
Checklist
- You talk to the line manager, not just HR or procurement.
- You know the needs: the vacancy, the salary range and what went wrong with other agencies.
- You’ve agreed the process: interviews, feedback and the offer through you.
- You show your value with relevant candidates, without overselling.
- Only then do you explain your terms, briefly, and you stay quiet.
- The terms are signed before the first interview.
- If you give something, you get something back.
Frequently asked questions
How high is a recruitment and selection fee?
Usually a percentage of the candidate’s gross annual salary, often with a minimum fee. How high that percentage is varies by agency and by niche.
How do you calculate the annual salary the fee is based on?
Many agencies take the gross monthly salary times 13.92: twelve months, a thirteenth month and double holiday pay. To that they add a fixed value for the company car and the expense allowance. Explain that upfront and there’s no argument afterwards.
When should you give a discount after all?
Only if you get something back for it, like exclusivity or a retainer on a retained search. A discount with nothing in return mainly teaches the client that they can ask again next time.
What if the client only wants to work through HR or procurement?
Then you respect that. Going around HR breaks more than it wins. Do ask whether the line manager can sit in on the intake meeting or the first interview, though, because that’s where you win the most.
How many placements sit behind your billing is in What counts as good billing for a recruiter?
Sources
- Greg Savage, Do not discount your fees, The Savage Recruitment Academy, March 2022.