Recruitment Agency Pricing Strategy
The recruitment agency has to select the right pricing strategy. It is extremely easy to start with the price competition, but it can be extremely dangerous for the future of the recruitment agency. When the agency wants to increase the prices for the successful recruitment, the clients can go away.
The pricing strategy has to be reasonable. The new recruitment agency cannot be the most expensive recruitment agency in the town, when there are no results behind the agency. On the other hand, the price competition is dangerous. The number of job positions staled from the competitors is limited by the price competition, but they generate less cash than the competitors’ job positions. It limits the agency in the growth and it can make it without any cash.
The new recruitment agency can afford to be a bit cheaper than its main competitors. The smaller price can be seen as the incentive to the HR Recruiters as they can argue themselves, why they decided to give the job vacancy to the newcomer on the market.
The discount offered to the clients of the new recruitment agency has to attract the HR Recruiters to give a try, but it has to generate the profit, which is extremely needed in the beginning of the growth of the recruitment agency.
The reasonable pricing strategy of the recruitment agency is about giving discounts for more job vacancies filled through the agency, which motivates the HR Recruiters to use the agency as the exclusive recruitment partner. The new recruitment agency can offer a one-time discount, which demonstrates the willingness of the recruitment agency to cooperate, but it has to be clearly defined, how the discount will be transferred into the regular cooperation.