Negotiating Rates

This is always a challenge because there is no clear cut answer.  client situations change, your current level of business changes and the supply of talent changes. 

If you have a good pipeline of requirements coming in, if the type of requirements the client is asking for are difficult to find or if the skill set is hot in the market place, I would be less likely to lower my prices.  How quickly the client responds and moves candidates through their interviewing process can help me reduce prices. 

I saw one vendor that has a sliding scale and the rates increase the longer a client takes to interview and make decisions.  I think this is one of the best ideas I've seen in a while.  The client has direct control over their process AND final billings. Don't lower prices unless it increases revenue. 

Be careful every time you negotiate your prices.  You are constantly educating your clients on how easily you are willing and open to price reductions.  What you think is a one time exceptions can easily become the rule in the clients mind.