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How To Price and Value Services?
Price and Value - 2 factors that are critical to the positioning of your business and 2 things your potential clients need to understand about you and your products and services so that they can make decisions about what and how to buy from you. How you price and how you differentiate on price and value could be a deciding factor in many contract situations.
ARTICLES
Responding to Fee Pressure by by David Maister
"Many professional firms are living in a world of ever increasing fee pressure from clients. What is the appropriate response to deal with this?
There are many things that can be done, big and small. Most obvious is to achieve a reputation for being worth more than your competition. This is done through..." Complete Article
How To Price Consulting Services - Inteview with Harry Mills, CEO of The Mills Group, an international consulting firm, and an expert on marketing and selling professional services
"What do you think is the client's view on the pricing of consulting services? - Well, it's obviously a very self-interested view. The typical client's thought is probably,..."
Read the Interview
How to Prevent Unpaid Consulting - by Jeff Thull
"If you're in consulting, you've probably encountered this scenario. You're trying to convince a potential client that your services will solve a pressing problem. To prove the point, you explain precisely how your solution will work. The client listens carefully, asks many questions and takes copious notes. You leave convinced that the client will hire you for the project. But when you call to close the sale..." Read More
TIPS AND PEARLS OF WISDOM
Charge the same or slightly less than the market rate AND give exceptional value. That way, no client has a reason not to use you!
If I am asked to handle 2 assignments at the same time, I charge my normal rate for the second job but include an agreed discount off the final invoice of the second job. This means my standard rate is maintained but I am accepting the client has given me 2 jobs.
Re poor clients - I don't use pricing to put them off, although have considered it. I have had 1 client who I would not want to work for again whatever the fee, so when they call, (which they do) I tell them we are too busy with other commitments to handle their work. This keeps the door open should the CEO (who is difficult) leave the business and I can pick up with my other contacts there. Linda Clark www.thehumanchoice.com
When price matters most..."It's common for clients to experience sticker shock when they see the price tag of a consulting project. With a little work, you can soften the blow."
How to dump hourly rates..."And so it is with the hourly rate, which consultants and clients are trained to believe is the only way to price services."
Find more tips at Guerilla Consulting on Pricing |
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