I’m a great fan of using technology to drive efficiencies and improve performance and have pioneered the use of video conferencing – not just to provide information – but to change mindsets and develop skills.
My latest product is a 1.5 hr session on pricing and fee negotiating.
Here are the main themes:
- The importance of selling value – ultimately, what you charge is determined by several factors, but an important one is the perceived benefit in the mind of the client (both organisationally and personally by the contracting client) of using a top notch firm such as yours rather than a discount firm.
- The pros/cons of different pricing options – what’s good for you and what’s good for clients – how to steer successfully between these options to achieve a win-win.
- Pricing the three different levels of professional firm services – Expertise (‘You Bet Your Farm’), Experience, Efficiency (for high volume and low margin work)
- The Cobb Curve – what happens to margins on professional services over time as products become commoditised
- The four-stage negotiation process – most firms just use one stage – I advocate adding three further stages which benefit the firm and avoid misunderstandings
- How to respond to clients saying ‘that’s too expensive’
- How to renegotiate the fee if the scope or goalposts move
- Estimating the fee in the first place – how to minimise the risk of under quoting, using bottom up and top down processes
- The psychology of pricing – using techniques such as anchoring, the use of ranges of services, the importance of helping clients minimise risk, the appropriate use of language
- Margin improvement – to address the challenge of delivering matters on fixed fees with potential undercutting competitors
I get really good feedback from these programmes! A small investment could make you a lot of money!