Never reduce quality IMO. It's better to stick to your price (the fair one that brings out the highest productivity in you) or walk away. So yes, I agree with ya.
I like the 3rd option. There can be moments you will have to choose 1st and sometimes you just got to offer the tiger for a tight budget. Things like that happens sometimes.
For some reason that client that expect a lot by giving you a small budget you will always find him a pain in the ass.. So i won't take clients like that.
Inform clearly from the begiining, what he will got for the cost.
better be forward from start, if he still decided to continue than it's okay, if not skip it. it's better than having dissapointed customer.
Learning to say NO! or Turning down the work is one of the hardest lessons you need to learn and sadly everyone makes the same mistake, you start out need the money, need any client and you will take anything. It just one of them lessons / things to learn.
Ideally you try to figure out what the client wants and what you can offer in the discovery phase and then if needs be just walk away.
Although I do understand it's easier said than done!
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