Earn What You re Worth: Value- Based Pricing LINDA POPKY

Transcription

1 Earn What You re Worth: Value- Based Pricing LINDA POPKY

2 Goals Today Understand why value-based pricing makes sense for you and for the client Learn how to identify the economic buyer in an organization and build meaningful rapport Understand importance of developing key objectives, measures and values, and of gaining conceptual agreement with clients Develop a plan to transition to a value-based pricing approach

3 About You One Minute Introductions: Name Company What you d like to get out of today s session Tell us: Why is a client better off after they ve worked with you?

4 Our Reference Material in this workshop comes from the work of Million Dollar Consultant Alan Weiss, Summit Consulting, and is used with his permission

5 The Real Reason Because this stuff really works.

6 The Ethics of Fees

7 A Tale of Two Painters Luis vs. Francisco

8 Wrong Focus On Input: Billable hours Hourly rate Tasks and deliverables Rather than Output: What will project accomplish? How is client better after I m gone? Change in client s condition

9 What s Wrong With Supply & Demand

10 Fees Should Depend on Two Things Value provided in the perception of the buyer Intent of buyer and consultant to act ethically

11 People Pay for Value

12 Value is Recognized

13 Key Concepts Economic Buyer vs. Gatekeeper Objectives/Measures Value Conceptual Agreement

14 Gatekeepers Role is to protect decisionmakers from people like us Can say no, but can t say yes Acts as go-between Often implements project

15 The Economic Buyer Has power to write check, issue PO, or authorize payment Isn t always intuitively obvious

16 Qualifying the Economic Buyer Whose budget will support this? Who will be evaluated on the project? To whom do you go for approval on options? Who makes the final decision? If we re in agreement, what prevents us from starting this project today?

17 You re Not Talking to the Economic Buyer When You Hear: I make the decisions on this project. I ll just need to get my boss to sign off on the final budget. This looks great. Just let me get approval for the $$ from my boss.

18 New Economy Warning Purchase authority has been restricted greatly. Former economic buyers have been disempowered Much higher titles now needed to approve even small budgets

19 Conceptual Agreement Build the relationship with the economic buyer Get agreement about objectives, measures and value Move to proposal

20 Objectives/Measures/Value Objectives: What the business sees as success Measures: How the client will determine if this has been successful Value: Changes that will occur with the success of the project

21 The Value-Based Fees Sequence Proposal with options Conceptual agreement Relationship based on trust Qualify the Buyer

22 Wants vs. Needs

23 The Good Deal Equation Tangible Outcomes x Expected Duration of Outcomes + Intangible Outcomes x Emotional Impact of Intangibles + Peripheral Benefits + Variables Positively Affected Fixed Investment Required

24 Determining Your Value Why me? Why now? Why in this manner?

25 Exercise Experience Intervention - Outcome

26 The Four Objections to Fees

27 I don t trust you. No credentials Poor credibility Uncertain point of entry Build a trusting relationship with the buyer

28 I don t need you. There s nothing to fix or improve You haven t motivated the buyer Your job is to identify preexisting or new needs, or anticipate future needs

29 I don t feel any urgency. Fear of disruption Return doesn t justify investment This situation is normal Create urgency: Competitive actions Window of opportunity Damage occurring now Show greater return Deteriorating condition

30 I don t have any money. Really refers to trust, need, urgency Money can almost always be found Help the client find the funds Offer alternative payment terms

31 Power of Options Easier to find a way to say Yes. Offer choices in terms of both price and value Offer options above client s acknowledged budget

32 Growing a Project with Options Workshop/Training Session $15K

33 Growing a Project with Options Pre-session customization + $7K

34 Growing a Project with Options Post-session 1:1 coaching attendees +$8K

35 Growing a Project with Options $7K $15K $8K Total: $30K

36 Determining ROI Estimate return on investment Be conservative! Provide 10:1 return on your contribution

37 Important Reminder: Never reduce price without reducing value. It s OK to offer a lower price option But reduce the value you are providing Discount only for value you receive (e.g., full prepayment)

38 Get Paid In Advance Furniture stores and supermarkets do it, why not consultants?

39 Common Consultant Mistake Undercharge and overdeliver

40 Ultimate Win: Get me Linda. Not: Get me a good marketing consultant.

41 Characteristics of a Strong Brand

42 It Draws People To You

43 Geared Towards Target

44 Differentiates You

45 Focuses on the Benefits, not the Features

46 Allows you to Charge for Your Value

47 Clearly Identifies What you Stand For

48 Applicable Across Multiple Media and Circumstances

49 Highlights Your Strengths

50 Shows Your Personality

51 Has Consistency

52 Value-Based Fees: Where to Start?

53 First Sale = To Yourself

54 Practice Talking Higher Numbers

55 Logic vs. Emotion Logic makes people think Emotion makes people act People act in their own enlightened selfinterest

56 Moving Clients to Value- Based Fees Value Based Business Onboard Increase perceived value to high potential clients Ignore low potential clients Offer new value

57 Offer New Value Unlimited access Wider access New services Combined buyers New access points Communities and memberships

58 Look Differently Find new buyers at existing clients Offer new services Look for new circumstances: markets, environments, business events, etc.

59 Keep Focus on Value Tell me what you ll charge. I don t yet know what you need or if I m the right person. Let s table that till I learn more about you. It s unethical for me to tell you that this early in the process. The range is between $X and $Y What s your budget?

60 Let Some Go Some clients should be abandoned Need to save time and energy for newer, more profitable business

61 Start Fresh Use value based pricing for new business Explain why this is in your client s best interest

62 Real Retainers Clients pay for access to your smarts. NOT a bank account to draw down from NOT a way to charge project fees Great for clients who want you on board, but not for a specific project

63 Role Play

64 Potential Pitfalls

65 Don t Get Lost in The Effort

66 Don t Do It Alone

67 Don t Give Away The Store

68 Exercise: Action Plan Identify current client opportunity Current expectations Chapter 7: Pick three ways you can add value and increase fees

69 Questions?

70 Leverage2Market Programs Marketing Leverage Assessment: One-time review of strategies, programs, goals, objectives Coaching Program 90-day coaching program Seminars, teleseminars, workbooks, coaching, consulting

71 Special Offers for You Consultants PowerPak Teleseminar Series Ignite Your Business Marking the Leap: Starting a Consulting Practice Building a Powerful Brand: Online and Off The Power of Association: Creating Communities Online The Power of Presentation: Marketing Ideas Effectively Show Me the Money Finding Customers in a Tough Market Fuel Your Growth Coming Back for More: How to Build Repeat Business Standing Out From the Crowd: Strategies to Build Thought Leadership Business Without Borders: Thinking Globally Other People s Money: Strategic Partnering for Growth TODAY ONLY: GET BOTH For $100 Reg. $129 each: WIC Pricing $99 each

72 Special Offers for You Private Roster TM Mentor Program. Includes 6 months of unlimited access to Linda, as well as entre into the vibrant Alan Weiss global consultant community. Join now and receive a free copy of Alan s book, Thrive! Stop Wishing Your Life Away. $3500 Master Mentor Linda Popky The Marketing Leverage Coaching Program: Get customized, individual attention. The 90- day structured coaching program focuses on a set of specific goals, as well as a Marketing Action Plan to meet longer-term objectives. Sign up now and get a free copy of our Consultants Power Paks eight teleseminars that will improve the performance of your practice. $4995

73 Your New Mantra I have so much value I would be remiss to not offer it to as many people as I can.

74 There s No Sound Unless You Make It

75 What Will You Do in the Next Seven Days?

76 Go Change the World!