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 Thank Mom

As I was sitting at the pool, waiting for my daughter to finish swim practice this past weekend I was thinking about Mother’s Day.  I heard a mom say to her child, “First, put your sunscreen on so you don’t get burned.”  It reminded me of all the things that were said to me as a kid by my Mom and how much of a leader she was to me. 

Here are 10 motherly messages that can be applied to your leadership strategies –

1. “I’m not here to be your friend; I’m here to help you grow up.”   As a leader, the primary role is to help a team succeed – if you end up with a friend in the process end then it’s a bonus.  It is hard to hold friends accountable – but if you set early expectations then, there are no mixed messages.
2. “Because it’s good for you.”  Sometimes a leader must stretch and grow their team by taking them outside of their comfort zones.  A leader’s vision sees capabilities beyond one’s own perceived limitations – and that is a very good thing.
3. “No, you’re not fat, you’re healthy.”  Sometimes, competitive pressures can deflate someone’s confidence.  A good leader knows when to point out positive attributes in light of some critical peer feedback. 
4. “You’re coming with me.”  I came along very late in my parents’ live.  My only sibling was married by the time I was four.  As a result, I was often the only child in the midst of a sea of adults at my parents’ social events.  It was great exposure for me, even if I wasn’t “participating”.  I learned a lot by observing.  It helped me feel comfortable having conversations with people of all different ages and backgrounds.  A good leader brings along team members to expose them to new experiences. Consider letting someone shadow you for the day.
5. “What do you want?”  Even though Mom had in mind what I needed, at least I had a chance to voice my opinion and we’d talk about it.  Including me in the decision making process was a much better way of getting buy with me – particularly as a teenager.  What do you do more of – asking or telling?
6. “I won’t tell your Dad.”  When we mess up, it’s great knowing that your manager is the first to forgive and isn’t ready to spread the word about your mistakes (unless it is immoral or unethical and they are required to report it).  Having a safe place to learn and grow is essential for emerging leaders.
7. “Call me first.”  There will be times when things don’t always go as planned. Having the peace of mind of knowing that you have the support you need if trouble arises helps not only manage through the issue, but prevents unnecessary guesswork if it is unchartered territory.  Most seasoned leaders have already dealt with most issues – sharing your experience in those tough times will surely minimize the impact. Who do you want your team members calling first – their peers or you?
8. “I have a surprise for you.”  It is always nice to know that someone has thought about you when you’re not around.  Maybe that surprise could be a raise, new project to work on, a mentor they’ve been seeking – be creative and surprise someone. They will likely surprise you with their response.
9. “Because I said so.” Sometimes corporate decisions need to be made and supported across the board without discussion or reasoning.  There are times when there are issues outside the realm of public knowledge and they just need to be accepted.  Having a leader who consistently fosters trust will gain buy in much more easily than someone who doesn’t.  
10. “It hurts me too.”  No one likes to deliver bad news. Progressive discipline is a way to help someone either find their way or find the door.  Either way, it is as painful for the leader as it is for the teammate – protecting the individual’s dignity helps everyone get through the process swiftly.  When the outcome is positive and the correction effort is successful, they will recognize the “tough love” you gave as a gift.

Thanks, Mom – for setting your leadership example.

Lori

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 Some Encouragement

I am fortunate to be part of a wonderful program at the Duval County Domestic Violence Shelter where I can help women prepare to go out into the workforce.  Being financially independent from an abuser is a critical step towards recovery.  Being prepared means more than knowing how to find a job.  They must first do some upfront work preparing their minds, bodies and souls for taking that courageous step.

I thought everyone could use a dose of encouragement from part one of the series, the Elements of the Mind.

Thoughts for Inspiration

 

Gain a Fresh Perspective on Your Value:

1.  The minute you alter your perception of yourself and your future, both you and your future begin to change.
   — Marilee Zdenek
2. In every person who comes near you look for what is good and strong; honor that; try to imitate it, and your faults will drop off like dead leaves when their time comes.
   — John Ruskin
3. Life isn’t about finding yourself. Life is about creating yourself.
   — George Bernard Shaw
4. Success is the good fortune that comes from aspiration, desperation, perspiration and inspiration.
   — Evan Esar

 Embrace Apprehension (unknown) versus Fear (pain)

1. Don’t limit yourself. Many people limit themselves to what they think they can do. You can go as far as your mind lets you. What you believe, remember, you can achieve.
   — Mary Kay Ash
2. It is not because things are difficult that we do not dare, it is because we do not dare that they are difficult.
   — Seneca
3. I think the key is for women not to set any limits.
   — Martina Navratilova
4. I’m not afraid of storms, for I’m learning to sail my ship.
   –Louisa May Alcott
5. It is more important to know where you are going than to get there quickly.
   — Mabel Newcomber

 Acknowledge but Don’t Admire the Obstacles

1.  Nothing is predestined: The obstacles of your past can become the gateways that lead to new beginnings.
   — Ralph Blum
2. The abundant life does not come to those who have had a lot of obstacles removed from their path by others. It develops from within and is rooted in strong mental and moral fiber.
   — William Mather Lewis
3. The three great essentials to achieving anything worthwhile are; first, hard work, second, stick-to-it-iveness, and third, common sense.
   — Thomas Edison

Understand the Power of Choice

1.  Each player must accept the cards life deals him or her: but once they are in hand, he or she alone must decide how to play the cards in order to win the game.
   — Voltaire
2. Happiness is not a station you arrive at, but a manner of traveling.
   — Margaret B. Runbeck
3. I’ve learned from experience that the greater part of our happiness or misery depends on our dispositions and not on our circumstances.
   — Martha Washington
4. If your ship doesn’t come in, swim out to it.
   — Jonathan Winters 
5. Whatever course you decide upon, there is always someone to tell you that you are wrong. There are always difficulties arising which tempt you to believe that your critics are right. To map out a course of action and follow it to an end requires courage.
   — Ralph Waldo Emerson

 

Provided by:  New Day Solutions, Inc.                                                                                            www.newdaysolutionsinc.com