The subject of fees is near and dear to our hearts. Fees are the ultimate measure of value and yet, even the most talented practitioners sometimes struggle with communicating their value to clients and prospects. In a recent webcast, we broke the subject down into five steps to getting the value you deserve!
2) Get the focus right: Most are familiar with the cost/benefit = value ratio. It is the relationship between cost and benefit that establishes value in any proposition. When it comes to the issue of establishing the right value proposition we have a tendency to focus on the cost side, rather than the benefit side. As a result of taking this view, when we get any push back on our fees the first instinct is to discount. Don't do it! Instead of focusing on reducing fees, focus on increasing benefits. Think of these benefits as pain relief. If we can focus on what that pain is, then put some quantification around that pain and the pain relief you provide, you will have a much easier time establishing the real value proposition for your fees.
3) Overcoming denial: The client needs to get in touch with their pain; their issues or frustration, challenges and obstacles. Your job is to uncover that pain by asking questions that help the client connect with it. Without that clear vision of what the pain is and the light at the end of the tunnel, any fees you propose will be viewed as an expense rather than investment in the resolution of a their issues. In the recording referenced you'll find dozens of examples of the types of questions that drive more value.
4) Quantify the gap: The greater the distance between where your clients is today and where they want to be in the future, the greater the value proposition to help them close that gap. The key is to quantify the cost (financial, psychic, lost opportunity, etc.) of not changing. Only then can your proposed fee be placed in a context of value that makes it easy for your clients to say yes.
5) Apply due diligence to your proposed fees: The same kind of due diligence you would help a client apply to any important business decision, needs to be applied to your own proposed services. Clients will see you have their best interests at heart when you put your services through the same cost/benefit analysis as you would any outside provider.
The bottom line is this; the cost of not changing must out-weigh the investment in your services to ensure a Win-Win for you and your clients.
If you can identify the pain, quantify the value of change vs. no change, and show that your fees will generate a return (in terms of dollars, or pain relief which are sometimes one and the same) to the client you will never have to discount again! For a full discussion on this topic click here for the on-demand webcast.
