April 23, 2019

I was discussing engagement options with a potential client not long ago. We got to the point where I reviewed my pricing for those different options.

"Hmmm," she said as she looked up.

"I’m on a non-profit board," she continued, "and recently we were reviewing proposals from several consultants," she said. "We ended up hiring the most expensive consultant, because we thought they gave us the best shot at a successful outcome."

"After we voted," she continued, "one board member said, 'well, no one brags about hiring the cheapest consultant.'"

Customers brag about finding a cheaper gallon of gas or finding the same pair of shoes on sale at one store versus another.

Clients don’t talk to other clients about their photographers, attorneys, or leadership coaches this way.

When clients brag about their professional services providers, they talk about outcomes.

A mom shows off the photos of her children which captured their personalities in a way she didn’t think possible.

A business owner tells his friends how his attorney who saved him thousands of dollars, all because of several provisions in a contract which his attorney recommended which didn’t seem important years ago.

A corporate manager talks about how the confidence their leadership coach instilled in them helped defuse a potentially combustible situation among several employees on their team.

So why price based on anything other than outcomes?

By the way, if you’re a professional services provider and you’re the cheapest, no one is bragging about you.

 

©Ray Business Advisors, LLC and John Ray

(Photo by CoWomen from Pexels)

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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.