Archives For pricing proposals

Here are some ways to increase fees without penalizing your clients.

  1. Measure risk – Impact and likelihood, of a disaster, jointly place a value on it and set your fee accordingly.
  2. Look for problem areas that consistently show up across the companies you do business in.  Come up with solutions and use this material to call higher.
  3. Trade product gross profit for recurring revenue.  This builds annuity rather than a one-time transaction.
  4. Use Assessments rather than traditional open-ended questions to discover larger opportunities.
  5. Be willing to give away assessments in order to reach higher-level people in the account.  This leads to selling larger value priced deals.
  6. Propose options to build adjacent business in the accounts you are already working.
  7. Build greater expertise into your consulting group to offer more complex solutions
  8. Develop presentation skills that appeal to the executive level.  You’ll find that you are worth more to them than the next guy.
  9. Pass up smaller transactions to create more time for complex deals that offer greater reward.
  10. Develop stronger marketing programs to position your company as the expertise leader, rather then the low price leader.

© 2011, David Stelzl

Break out the pricing?

November 8, 2010 — 6 Comments

Imagine asking the car dealer to break out the pricing on spark plugs, steering wheel, etc.  And then ask them to walk through the process of assembly with you. Ridiculous?  However, we do it all the time with our customers.  The place were this is most concerning is on the consultancy side.

When you buy the car, you care about the car.  You want a car that runs, performs, fits with your lifestyle (I drive a FWD SUV outfitted with roof bike racks and packed with mountain bike tools, parts and clothing) and doesn’t break down.  The process doesn’t really matter; the overall cost must fit in the value budget you’ve set based on education.

So why are we walking through the steps and selling the method; the manufacturing process?  Sometimes this matters in explaining quality, but only the differentiators matter.  Focus on the result, not the process.  Focus on the value, not the price.  When people ask how long it will take, find out the required deadline.  The amount of time you spend should not be factored into their decision.  They need something, you have a solution, you can deliver…period.  Now, how much is this worth to their organization?

© 2010, David Stelzl