How Clients Benefit When You Charge More
September 29, 2020
Professional services providers, you want to help your clients achieve their goals, right? Charge more. Yes, you help your clients by charging more.
You don't adequately serve your clients by discounting the value you provide them. I know this idea is counter-intuitive and for some, it will never make sense.
Mind you, I don’t mean charging more with no rationale for the higher price. On the contrary, the rationale for your pricing should be grounded in the value clients perceive.
Recently I had the chance to add some value to one of my North Fulton Business RadioX® clients by doing something out of scope, a "surprise and delight" gesture which helped my client deepen an important relationship for them. This gesture cost me a little time and money, but I didn't give it a second thought. Why? Because I’d priced my services relative to the value I'm providing, not based on some hourly rate or some other nonsense.
I had plenty of margin to invest in my client. When you price to the value you’re providing, you operate from a mindset of abundance. You’ll be searching for ways to aid the client on their journey in ways they didn’t expect, and when you do that, you’re cementing the relationship.
When you discount the value you provide, on the other hand, your mindset about "surprise and delight" changes. You get chintzy and your attitude shifts toward cutting corners on a project because you feel you need to make up for that discount you're absorbing. Your attitude about service to that client veers more toward making up for that discount or, at worse, resentment.
What kind of business would you rather have? Wouldn’t you rather have one in which you happily invest in your clients and accelerate their track to the goals they seek?
Isn’t that a lot more satisfying?
Image Credit: JumpStory
©Ray Business Advisors, LLC and John Ray
About me: I’m enthusiastic about how changes in pricing strategy can significantly change profitability for a business and enhance life choices for business owners. I live this passion through Ray Business Advisors, my outside CFO and business advisory practice, in which my pricing is exclusively value-based, not hourly. I work with business owners on how they can change their pricing not just to increase their profits, but better serve the wants of their customers. Click here to learn more or call me at 404-287-2627.