I Need To Know How To Hold ‘Em and When to Fold ‘Em

When you are selling your own services, one of the most difficult things to do is to set your own price.  When I work with entrepreneurial or emerging consultant clients, we typically go through an exercise to determine market value, cost of good/services, market share strategy and regional pricing tolerance (where applicable).  However, the after that data driven exercise, complaints start to creep up regarding reducing prices and “free/pro-bono” work eating up too much time without any return.  Here are five things to do to avoid losing your livelihood and your sanity. 

1. Find out early in the sales process what the client’s budget is.  You want to ask them a budget question before they ask you a price question. If their budget is in line, then proceed.  If it is not, then quickly let them know that their budget is below your standard pricing.
2. Help them afford you – if you are consulting to help a company save money, then you can structure your contract to be your full price but has two pay components.  A base price (their budget) plus the savings realized up to 5% over your standard fee with a guaranteed minimum (your fee).   If you are facilitating a workshop, you can structure the contract to be your full price which includes the base fee for the workshop plus X number of presold workbooks.  They can either gift the workbooks to their employees, or ask the employees to pay for workbooks to make up the budget gap.  The key is to keep each invoice at or above your market value. 
3. No free-bies unless there is WIFM value (What’s In-it For Me).  If you can garner exposure (verified in advance), marketing, a chance to sell other products, etc. then it is a good idea to do some “free-in exchange for” work.  But be cautious.  For some crazy reason, friends and family often assume you want to work for free.  What’s up with that?  You can politely but directly say “that is something do for clients, and my fees are X.  If that is not something you’re comfortable with, I completely understand and I’d be glad to point you in another direction.”   When was the last time you asked an attorney friend to review a contract for you for free or an architect friend to draw up some plans for your new beach house?  Hopefully never.
4. When you are asked (in case you don’t get that budget question in first) “what is your fee, say something.  Even if it is “what is your budget?’.  Anything is better than, “um” “well” or nothing.  That’s the first clue that you are flexible or will negotiate – i.e. talked down.  If you have a price and stick with it, you can at least say it confidently and work on the details of the project as the conversation progresses.
5. Hold your own.  Don’t change price based on pressure of the prospect.  If they indicate the price is too high, ask them why they feel that way.   Ask them what they were expecting and where they are getting their price base from.  You may learn that a competitor is charging less – and you may have to either explain how your services differ or be willing to match price.  At some point if there is a competitive pricing issue you have to decide if you want to “compete” on a price, quality, or product differentiation.  Or, you may decide that you don’t want to compete and fold ‘em and move on to the next opportunity.    

I Need to Love It

Formula for making a living doing what you love:

Your strengths/gifts + Your passions/preferences + a desired product/service* =

A job that is fulfilling, rewarding ($$)  and provide long term vocational satisfaction

In my coaching practice, I often am asked, “How do I know what I those things are?”   Here are a few questions you can answer that will point you in the right direction:

When people say “thank you” you to you – what do they thank you for?  Is it for helping, solving a problem, being compassionate, your creativity . . . ?  This is your is what you are naturally good at – your strengths/gifts.

What things do I naturally do first and what things do I put off?   Do you get energy from talking with people, doing organizational stuff, research, reading/learning, planning, working on that volunteer or service project . . . ?  What you like to do first is what you are naturally drawn to, comfortable doing and/or are passionate about.  In here lies what you love.

What products and services that are similar in the market, and how many providers are there?   If there are very few similar other products/businesses that offer what you love then it probably isn’t a viable business strategy.  There aren’t that many original ideas out there  – but plenty of original ways to  specialize it and make it your own – so if it isn’t thriving already somewhere, it probably wont be.  If it, or something similar, is being sold –  chances are if you are good at it and love it – you’ll be successful at it.

Here is a link to someone who has taken her passion and not only has made it into a thriving business, but is bringing joy into people’s lives every day!  Kathy Shires, Director of Animal Assisted Therapy at the Foundation for Blind Children in Phoenix, Arizona trains Collies to help children who are visually impaired and who are in rehabilitation therapy.  In less than one minute and thirty seconds, you can watch an amazing story featuring her Collies at work.  Her passion and her dogs are making the world a better place, one lick at a time.  Click on this link http://teamk9therapy.com/  go to “interesting videos” – and watch the first one!  Hats off to you, Kathy for sharing your gifts in such a special way.  If you are interested in donating or being a sponsor – contact Kathy through their website. 

• Video Courtesy of KPNX TV Channel 12 Phoenix, Arizona April 27, 2010

*definition of desired product/service – something a customer is willing to pay for!

 To your passion!

Lori

I Need An Edge

Competition is fierce these days.  Who doesn’t want to make a good impression, win the sale, or get promoted?   How do you set yourself apart from your competitors? 

Here’s what I like to call the 10% edge.  5 small things that won’t cost you a fortune but will present you like a million bucks.    

• Make sure you have great shoes.  They should be professionally appropriate, clean, neat, scuff free, and without holes in the soles.  Yes, it’s visible when you cross your legs.  Try using a dryer sheet to give a polished shine to your shoes and eliminate the dust if you haven’t worn them for a while.
• Carry a nice pen.  It doesn’t have to be a Mont Blanc. Choose something classic, easy to hold, and doesn’t look disposable.
• When you are meeting with someone face to face, eye contact.  Looking up like you’re searching for the next word, or looking down and away gives the impression you don’t know your stuff.  Look ‘em in the eyes and show your confidence.
• Follow up in writing – pen and paper writing.  Send a note via snail mail instead of email.  One way to do it efficiently is to stamp and address the envelope before you go to your meeting.  As soon as your meeting is over, sit in your car, office, building lobby and write the note capturing relevant thoughts to show your insight.
• Groomed Nails – short and clean .  Men, your hands can take abuse throughout the day.  If you’re not into manicures, a moisturizing lotion will do wonders.  Keep a small bottle of  non-greasy unsented lotion in your briefcase or car.   A quick application before a meeting will remove the appearance of those rough spots.  Ladies, no long crazy nails.  Not professional.  If you don’t have time for frequent manicures, 5 minutes every 2 weeks will do the trick.  Use a single coat of Sally Hansen No Chip 10 Day Nail Color in Tough Buff.  It looks great, dries fast and lasts for at least 2 weeks.   

Bonus:  Smile!  We get so caught up in the seriousness of business that we forget to let our face know that we’re having fun.  Do you remember the last time you were in a meeting and the presenter didn’t smile?  Snoozer!  Your client, prospect, or future employer will see you as a positive person and want to do business with someone who can be professional and happy.

I’d like to know what you do to set yourself apart from other 90%!