When a client asks if you can reduce the fee you tell them you will be happy to. You simply need to discuss which objectives they do not want included in the total project.
People love to reduce price but hate to reduce value.
If it's truly a budget issue, they'll cut where appropriate. If they are simply trying to get a lower price they will back pedal more often than not. In complete darkness, we are all the same. It is only our knowledge and wisdom that separates us. Do not let your eyes deceive you.