Tag Archives | selling professional services

Is Your Price Right?

By on January 20, 2012 in Pricing

 You may be reluctant to tinker with the fees you charge, especially given the tough market many of your clients face. Still, it’s good to look at how you’re pricing your services to see if there’s room for improvement.

Your expertise (and value to clients) grows over time. Often, though, fees lag behind that growth. Most consultants I meet are pricing their services too modestly for the value they provide.

When was the last time you changed your fees? If it’s been more than a year, it’s time to consider a change. It’s a routine matter for many businesses to raise their fees each year, no matter how good or bad the economy.

You might worry that you will sink your competitive position if you change your fees in a tight market. But remember, the state of the economy won’t impact your clients’ perceived value of your services–assuming you’ve done a good job expressing that value.

To decide if you need to rethink your fee strategy, ask yourself one question: Is the value you bring to your business keeping pace with the value you’re bringing to the market?

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Sharing

By on December 18, 2011 in Client Relationships, Selling

IdeasThe thought of sharing their intellectual property causes some hand-wringing among consultants. How much should you give to a new client? Should you hold something back until you make the sale?

Some consultants worry that clients will pilfer their ideas and use them without any help. Others are concerned that competitors could get their hands on proprietary information and figure out a way to profit from it. A few consultants believe that clients should pay before getting the “good stuff.”

Such concerns are not unreasonable. I’ve seen clients “borrow” ideas, and ethically-challenged consulting firms have been known to “adapt” other people’s work and call it their own. Fortunately, these are exceptions, not the rule.

Clients buy your expertise. Your best ideas are the foundation of the value you offer. If you hold them back, you put yourself at a disadvantage with clients. Plus, hopefully, no one can execute a project using your ideas as well as you can.

My advice is to share your best ideas freely. Clients will appreciate your commitment and you’ll have better luck closing sales. When asked if it wouldn’t be better to wait on providing ideas to clients, a colleague summed it up by saying, “They can take my ideas. I’ll come up with others.”

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Who Decides?

By on July 18, 2011 in Client Relationships, Selling

michael w mclaughlinWe all know that clients buy perceived value when they hire a service provider.

Your efforts during the sales process contribute to your client’s perception of value, of course, but other sources of influence can be equally critical to your client’s buying decision. Before most people make a big purchase, they seek out advice from those they trust–a colleague, mentor, boss, or even a family member.

I’m not talking about people who have an “official” role in approving the sale, but those in your client’s network who are likely to get your client’s ear. It’s possible that you’re not aware of these people and how they could shape the sales process.

Not long ago, for instance, I worked with a prospective client on a project that never got off the ground. Why? I found out later that one of the client’s influential colleagues questioned the project’s value and that was the end of it.

It’s not always possible to know which individuals could sway a client, but you can ask questions to help identify them and their potential concerns.

For example, to understand the perspective of your client’s colleagues, ask how your proposed project fits with other ongoing or planned initiatives. Is your project complementary with others or competing? You can also ask directly how your client’s colleagues view the value of your proposed project.

To get a better understanding of how the client’s staff might influence the buying decision, you can ask what the most influential staff people think of the project–and the potential organizational change it would bring. Will they view the project as essential, somewhat important, or just another initiative?

You can come up with similar questions to figure out how your project may be viewed by others in your client’s network.

Use the answers to these questions to shape a value proposition that includes the impact of the project on the people who aren’t directly involved in the decision process but who are important to the sale.

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10 Things Not to Say at Your Next Sales Meeting

By on June 8, 2011 in Client Relationships, Selling

source: IMLS DCC

Sometimes, no matter how hard we try, the wrong words slip out in a client meeting. If you’re like me, you’ve had times when you wished you could take the words back just as soon as they passed your lips.

Here are 10 things you might want to avoid saying in your next sales meeting:

  1. Someone should have been fired for that.
  2. Yes, we’ve seen this before. It will be a breeze.
  3. I never would have done that.
  4. You actually hired those people?
  5. If it wasn’t hard, you wouldn’t need me, right?
  6. I’ll only need 90 minutes of your time to preview my qualifications.
  7. I wouldn’t want to work here either.
  8. The terms of this proposal expire in 3 hours.
  9. What were they thinking?
  10. We always lengthen the project time-line when a client wants to “help” us.

Any others you’d like to add? Let me know.

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Take a Comprehensive View of Value

By on May 25, 2011 in Selling

michael mclaughlinEvery service seller talks about value. It pops up in marketing communications, sales proposals, and during projects. Though the term may be over-used, if you have a firm grasp on client value, chances are you will set yourself apart from others.

Here’s what I mean. Most sellers have a generic expression of value in their service offers. Maybe it’s reduced employee turnover, improved process efficiency, or more market visibility. That general expression of value often serves as the catalyst for a client to make contact with you.

When you’re fielding that initial contact, whether it’s an in-person meeting or an email, what matters most isn’t the value you outline in your marketing communication. Prospective clients want to see how you create a situation-specific view of value. They want to see how you assess the opportunity and define the value you’ll deliver.

The most successful sellers assume there’s more value to every project than meets the eye. They look at the impact of the client’s issue and its resolution on the entire organization to uncover hidden sources of value.

A web site redesign project, for example, may improve site visitors’ experiences and reduce a client’s IT maintenance costs. But that’s not the full extent of potential value. It’s possible for a new web site platform to drive efficiencies in other system development projects, or to improve inventory management by offering customers more accurate information about what’s in stock.

By searching for the less obvious sources of value, you demonstrate your commitment to clients, show your analytical skills, and bring value to the sales process. Clients recognize and reward the extra effort.

To find new sources of value, think beyond the primary beneficiaries of a proposed project. Explore how the project might impact people and processes that aren’t directly part of it. And be sure to include the possible value to external groups–customers, suppliers, shareholders, business partners, recruits, and the community.

An interesting thing happens when you focus on finding all sources of value. You learn more about your client than your competitors. And that results in an offer that is more relevant, accurate, and valuable to your client.

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Blogs I Like: Andrew Sobel

By on May 23, 2011 in Client Relationships

andrew sobel photoFrom time to time, I pass along my thoughts on blogs or web sites that I read on a regular basis. Hopefully, you can gain as much benefit from them as I have.

Consultant Andrew Sobel publishes an insightful blog at www.AndrewSobel.com that focuses on the business of client relationships. You don’t have to be a management consultant to find this blog helpful. If you’re in a relationship-intensive business, you’ll find something of value on Sobel’s site.

The Voice of Authority

Sobel has worked for more than 25 years as a strategy advisor, executive educator, and coach. He’s written three books on building business relationships, including Clients for Life and All for One: 10 Strategies for Building Trusted Client Partnerships. And he’s written articles for most of the world’s major publications.

He uses his blog and web site to extend the concepts in his books and articles and to bring his latest thinking on developing client loyalty to his readers.

Comprehensive Content

This site offers a range of content from big thinking ideas to specific tactics, like how to have a perfect client meeting. If you read Sobel’s recent series of 10 posts called Things Clients Hate, you’ll have a great check list of things to avoid at your next client meeting.

You’ll also find dozens of articles, archived newsletters, and short video clips on the site.

I think Sobel does insightful work, and he shares his ideas freely. I’ve had an opportunity to interview him several times for Management Consulting News. Here’s a link to our most recent discussion on building client partnerships.

If you haven’t seen his blog, take a look. It’s worth having in your newsreader.

What blogs are you reading regularly?

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Sanity Check: How’s Your Client Collaboration?

By on May 13, 2011 in Sanity Checks, Selling

why projects fail

Most project problems originate from ineffective collaboration between the consultant and client during the sales process.

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Book Review: Rainmaking Conversations

By on April 19, 2011 in Books, Selling

Mike Schultz and John Doerr, co-founders of the RAIN Group, just published their second book, Rainmaking Conversations: Influence, Persuade, and Sell in Any Situation. The book joins the growing list of sales books on the market, but there’s something different about this one.

Focus on Conversations

The central idea of the book is that the decisions customers make about buying are driven by the quality of the conversations they have with sellers. Most sellers understand this idea, but Schultz and Doerr shine a new light on the subject by showing how everything we do prepares us (or doesn’t) for the all-important sales conversation. With the sales conversation as the book’s organizing principle, the reader can easily see how the strategies and tactics in the book help to win the sale.

Help with the Process and Psychology of Selling

You’ll find lots of practical advice in the book, like how to handle sales on the phone, how to prepare for a meeting, and how to diagnose customer problems. But, early in the book, the authors discuss the importance of the seller’s motivations, goals, and attitude to becoming a rainmaker. The main message: you are the key to your success as a seller. And they offer tools to help you think about and achieve that success.

Full of Hidden Gems

Rainmaking Conversations includes interesting sections on the role of influence in the sale, how to build that influence with customers, and techniques for co-creating solutions to customer problems. Schultz and Doerr also offer a framework that can help you develop your own style for dealing with the inevitable customer objection. There’s a real-world feel to the wisdom in this book. You realize these gems weren’t concocted out of thin air, but from the authors’ decades of combined experience.

Reader-Friendly

Schultz and Doerr really understand how people are reading these days, so the book is a good combination of valuable lists, tables, and longer explanatory text. This is a book that you can scan to find the subject you want, or you can read the book from front to back. Sometimes, all you need is a reminder before a meeting, and the book is set up so you can access what you need.

I’ve read this book twice, and I found new ideas in the second reading that I missed the first time through. I liked the book and I think you will too.

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A Blog You Should Read

By on April 14, 2011 in Managing Your Business, Marketing, Selling
Ian Brodie

Ian Brodie

Ian Brodie, a UK-based consultant and coach, publishes a thought-provoking blog called Get More Clients in Less Time. If you are in the professional services business, there’s a lot to like about Ian’s blog.

He’s Been There and Done It

One of the things I like about Ian’s work is that he really knows his stuff—and sticks with it. He’s got real expertise in professional services and it shows. You can find other people writing about services marketing who mistakenly believe their general knowledge of marketing qualifies them to opine on the challenges facing services marketers. Ian’s not a pretender. He’s been there and done it.

Keeps It Fresh

Ian does a good job of posting on a regular basis. You’ll find fresh content every week, often with a counter-intuitive spin on conventional wisdom. Not long ago, he wrote an interesting post on Marketing Half Truths, which you’ll see challenges the “rules” of services selling.

Presents a Variety of Viewpoints

Recently, Ian added a podcast program called Authority Marketing. Each podcast is an interview with a leading consultant about how that person built an authority position in the market. He’s got interviews with people like Drayton Bird, John Seddon, Charles Green, and Tom Searcy.

Speaks Authentically

The blog’s intent is to support Ian’s sales process, but not in an in-your-face way. His writing style is authentic, engaging, and personable. Here’s an example from his bio:

“I’m far from a natural salesperson. But through study and experience I’ve learned what it takes for even the most reluctant of professionals to become highly effective at marketing and sales – and that’s what I teach my clients.”

Check It Out

Ian is doing interesting work and shares his expertise freely. If you haven’t seen his blog, it’s worth a look.

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The Fallacy of Standardization

By on April 12, 2011 in Managing Your Business, Marketing

It’s fairly common to hear the advice that service providers should package their services into product-like offerings. That is, if they want to grow their businesses more quickly, close sales more easily, and rack up the profits.

The reasoning is that clients will have an easier time understanding and buying a “product” than grasping the benefit of a pure (intangible) service offer. To make the buyer’s job easier, each service offer should have a standard methodology (not a bad idea), a brand name, canned “deliverables,” and a set price. That way, clients would know exactly what they were getting, thereby simplifying the buying process.

As a marketing strategy, standardizing your offerings does accomplish one goal: it helps clients evaluate what you’re offering. As a sales strategy, though, the standard offer usually falls flat on its face.

I don’t remember a client ever saying, “Just give me the standard package of services you give to everyone else.” Clients want new ideas that are relevant to their unique situations. That’s what they pay for. Your standard offer may get the door open, but the actual solution you design is what leads to differentiation—and the sale.

If you rely solely on a standardized “product” for sales, you strip the innovation from your service and risk landing on the pile of commodity providers who compete solely on price. To find the path to growth, you need the right balance between standardization and innovation.

It makes sense to describe your services in an understandable way by referring to a service name, an approach to delivering the service, and the benefits others have achieved. But if you try to sell any off-the-shelf service as-is, you’re leaving out the most important part of the service—your own creativity.

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