By Michael W. McLaughlin
Some years ago, my wife and I decided to remodel our outdated
kitchen. Through referrals and research, we found a contractor and
conveyed our vision to him so he could prepare a proposal.
The contractor understood what we wanted and contributed some great
ideas. We worked well together and were excited about the project—until
we got to the pricing discussions. That’s when the contractor’s
interests diverged from ours; the tense negotiations about price
strained the relationship with the contractor and nearly scotched the
deal.
Consultants face a similar dilemma. Things will be humming along
nicely as you exchange productive ideas with a client. But when you
ultimately come to the subject of fees, the interests of the client and
the consultant often head in opposite directions:
Clients and consultants alike usually dread fee discussions. Here are
six strategies to help you preserve your profit margins and your client
relationships as you work through pricing discussions.
Begin with the End Goal
I once received a single-page proposal from a consultant that
contained a one-paragraph project recap, a proposed fee, and a space for
my signature of approval. I’m a big fan of short proposals, but this
was one for the record book.
I asked how the consultant had derived the fee and the only answer I
could get was, “That’s our fee for this type of work.” The number—which
was a big one—seemed arbitrary and I judged it to be unacceptable.
Instead of springing an unsubstantiated fee on a client, start every
sales process by identifying the client’s desired results, and then
quantify them. It’s hard work, but it pays off when you eventually get
to a discussion of fees. With a credible estimate of benefits, the
client has a powerful context to evaluate whether or not your proposed
fee is a good deal.
read more: http://mindshareconsulting.com/six-strategies-paid-worth/
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