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Other Added - Your Fees - It's About Value - Not Time
We all receive various forms of written sales communications each week. Some of these will cause us to totally ignore the piece, others will get a few seconds of our attention and a very select few will grab and hold our attention. So what compels us to respond in these ways? After applying some strategic thinking to this question, here are ten (10) elements that Your Strategic Thinking Business Coach believes produces compelling written sales communications.Strategic Element #1: A powerful headline. This can make or break your sales because if it is not powerful and compelling, your prospect will turn away quickly.Stra
If you are a retail store owner and your annual profit averages about $3,000 net of your salary and all expenses, a 50% increase would be $1,500. While 50% is a good improvement in profitability, an investment of $100/hour or $2,000, not to mention $500/hour, wouldn't be "worth it" to that client. Now if you'r
Are you looking for a top-paying job in the corporate environment? If so perhaps you cannot cut it in a business for your own or you have no entrepreneurial savvy. Many people who lack the skills, talent or wisdom to run their own company will try to get a job in corporate America. A perfect r?sum? will be your key to such economic enslavement.Perhaps you will find the perfect job of your dreams working 9-to-5 and they will own you for the next 40 years. Is this what you're looking for? If so you will need a good r?sum? and one, which makes you look better than the next person who is very much like you anyway.How can yo
And to some extent, the statement is true. Every place is different. Businesses are made up of people and every person is different.
However, if you have done your homework, if you've developed a level of trust with your client and if your client - wherever you are - perceives your product or service to provide the same value that clients in ____________ perceive, you can charge the same as you can in _____________. If your clients won't pay what you think your product or service is worth and you're blaming them - you're blaming the person. Your clients make buying decisions made based on perceived value, THEIR perception of value, not yours. If your customer doesn't perceive the value, they won't make a purchase. Period.
So the question isn't, "Why won't they pay?" The question is, "Why is there a disconnect between your perceived value and theirs?"
Let's say you're Jane Doe, an internationally recognized oil and gas attorney.
Situation #1: ExxonMobil wants to gain the approval of the Peruvian government to drill off their southern coast. If they receive the approval to dig it would mean hundreds of billions of dollars to ExxonMobil and the company has asked you to assist them. They've asked you to attend a 1 hour meeting they've scheduled between the CEO of ExxonMobil and the Peruvian government in an attempt to gain drilling approval.
Situation #2: Murphy Oil, a small oil company in El Dorado, Arkansas is considering purchasing a Malaysian deepwater lease from Royal Dutch Shell. This is a pretty standard transaction in the oil industry, however the services - about an hour to be exact - of an experienced oil and gas lawyer is still needed to finalize the documents.The lawyer is the same in both situations; Jane Doe. The time requirement is the same in both situations; 60 minutes. Is the fee Jane charges the same? No. Why? Because Jane's fees aren't based on the time she gives the company. Her fees are based on the value she gives the company. Furthermore, the value isn't what Jane perceives it to be. It's what the company perceives they gain by hiring Jane. Think basing your services on providing value - not providing time.
Let's try another comparison. You're John Smith and you've relocated to Portland from Boston after 15 years as Vice President in State Street Bank's retail advisory services division. You've started your own consulting business with a specialty in helping retail businesses.
Situation: In about 20 hours of consultation work, John is able to help his retail clients streamline their operations and maximize the sales per square foot so they see increased profits, on average, of 50%; some even more. Question: What is John's service worth? $100/hour? $500/hour? The answer is yes... and no.If you are a retail store owner and your annual profit averages about $3,000 net of your salary and all expenses, a 50% increase would be $1,500. While 50% is a good improvement in profitability, an investment of $100/hour or $2,000, not to mention $500/hour, wouldn't be "worth it" to that client. Now if you're
Public Relations (or P.R.) is a wonderful, yet often overlooked marketing tool. P.R. is an intangible – making it a tough sell for many P.R. professionals. It is our job to sell the concept and show the client how it will enhance marketing efforts and, in many cases, replace costly or one-off advertising. Public relations is just that – relating to the public. Every outward communication should be carefully executed and the mission of the company should never be compromised. How do your customers find you? How does the public perceive your business? These points can be incorporated into a P.R. strategy that maintains consistent mess
So the question isn't, "Why won't they pay?" The question is, "Why is there a disconnect between your perceived value and theirs?"
Let's say you're Jane Doe, an internationally recognized oil and gas attorney.
Situation #1: ExxonMobil wants to gain the approval of the Peruvian government to drill off their southern coast. If they receive the approval to dig it would mean hundreds of billions of dollars to ExxonMobil and the company has asked you to assist them. They've asked you to attend a 1 hour meeting they've scheduled between the CEO of ExxonMobil and the Peruvian government in an attempt to gain drilling approval.
Situation #2: Murphy Oil, a small oil company in El Dorado, Arkansas is considering purchasing a Malaysian deepwater lease from Royal Dutch Shell. This is a pretty standard transaction in the oil industry, however the services - about an hour to be exact - of an experienced oil and gas lawyer is still needed to finalize the documents.The lawyer is the same in both situations; Jane Doe. The time requirement is the same in both situations; 60 minutes. Is the fee Jane charges the same? No. Why? Because Jane's fees aren't based on the time she gives the company. Her fees are based on the value she gives the company. Furthermore, the value isn't what Jane perceives it to be. It's what the company perceives they gain by hiring Jane. Think basing your services on providing value - not providing time.
Let's try another comparison. You're John Smith and you've relocated to Portland from Boston after 15 years as Vice President in State Street Bank's retail advisory services division. You've started your own consulting business with a specialty in helping retail businesses.
Situation: In about 20 hours of consultation work, John is able to help his retail clients streamline their operations and maximize the sales per square foot so they see increased profits, on average, of 50%; some even more. Question: What is John's service worth? $100/hour? $500/hour? The answer is yes... and no.If you are a retail store owner and your annual profit averages about $3,000 net of your salary and all expenses, a 50% increase would be $1,500. While 50% is a good improvement in profitability, an investment of $100/hour or $2,000, not to mention $500/hour, wouldn't be "worth it" to that client. Now if you'r
If you've been watching those late night infomercials, you may be convinced that the US government is giving away Free Money to just about anybody who needs some. Your savings and even your home may be at risk if your business fails, so the thought of a free government grant to start your business is very tempting. Grants are given by an organization or local government officers to a business in line with their particular projects success.In return, you have to pay a 2% of your outstanding loan each year to the business service sector of the government who helped you acquire the loan. Small business loans are now available from a w
Situation #2: Murphy Oil, a small oil company in El Dorado, Arkansas is considering purchasing a Malaysian deepwater lease from Royal Dutch Shell. This is a pretty standard transaction in the oil industry, however the services - about an hour to be exact - of an experienced oil and gas lawyer is still needed to finalize the documents.The lawyer is the same in both situations; Jane Doe. The time requirement is the same in both situations; 60 minutes. Is the fee Jane charges the same? No. Why? Because Jane's fees aren't based on the time she gives the company. Her fees are based on the value she gives the company. Furthermore, the value isn't what Jane perceives it to be. It's what the company perceives they gain by hiring Jane. Think basing your services on providing value - not providing time.
Let's try another comparison. You're John Smith and you've relocated to Portland from Boston after 15 years as Vice President in State Street Bank's retail advisory services division. You've started your own consulting business with a specialty in helping retail businesses.
Situation: In about 20 hours of consultation work, John is able to help his retail clients streamline their operations and maximize the sales per square foot so they see increased profits, on average, of 50%; some even more. Question: What is John's service worth? $100/hour? $500/hour? The answer is yes... and no.If you are a retail store owner and your annual profit averages about $3,000 net of your salary and all expenses, a 50% increase would be $1,500. While 50% is a good improvement in profitability, an investment of $100/hour or $2,000, not to mention $500/hour, wouldn't be "worth it" to that client. Now if you'r
As we all know there is office gossip and rumours that abound in the workplace. Some of them start as a joke and some as a result of overheard misinterpretation of a conversation. What we need to remember is that rumours hold no power on their own, it is the person that is passing it on that lends it credence. Now we do not want to allow us to stoop to their levels of unprofessionalism, but as it is your reputation that is being tarnished you need to address this as soon as possible. We do need to make sure that the rumour has no credibility, so before we go and address this with the person we need to be objective in our view of what we h
Let's try another comparison. You're John Smith and you've relocated to Portland from Boston after 15 years as Vice President in State Street Bank's retail advisory services division. You've started your own consulting business with a specialty in helping retail businesses.
Situation: In about 20 hours of consultation work, John is able to help his retail clients streamline their operations and maximize the sales per square foot so they see increased profits, on average, of 50%; some even more. Question: What is John's service worth? $100/hour? $500/hour? The answer is yes... and no.If you are a retail store owner and your annual profit averages about $3,000 net of your salary and all expenses, a 50% increase would be $1,500. While 50% is a good improvement in profitability, an investment of $100/hour or $2,000, not to mention $500/hour, wouldn't be "worth it" to that client. Now if you'r
A good, well-drafted business plan is essential for starting an entrepreneur magazine business. The plan has to be detailed, and professional help can be sought in order to get it right. Understanding the plan and carefully implementing it are absolutely essential.Steps to Starting an Entrepreneur Magazine Business; It is necessary to conduct market research to see if there is a market for your magazine. It is essential to determine where the readers will come from, how your magazine will reach them, are there advertisers who will be interested in advertising in your magazine, who will write articles for your magazine and how
If you are a retail store owner and your annual profit averages about $3,000 net of your salary and all expenses, a 50% increase would be $1,500. While 50% is a good improvement in profitability, an investment of $100/hour or $2,000, not to mention $500/hour, wouldn't be "worth it" to that client. Now if you're LL Bean and your net annual profit is $500 million, a 50% increase means an additional $250 million. I'm pretty certain that John's 20 hours would be valued a lot more than $500 an hour and I'm sure John would be paid a lot more than $500/hour by LL Bean.
These scenarios are easy to grasp because value in these cases are easily expressed in dollars and dollars are the primary gage most businesses use in determining investment value. If your product or service addresses the more "intangible" business challenges - those not easily translated into dollars, i.e. procrastination, lack of accountability, low moral, etc. - it's important to do what you can to help your client put a dollar figure on the dollar "value" of what they will gain working with you.
No, dollars aren't the only indicator of value. In a highly competitive, small business marketplace where budgets are limited, it is a good place to start, however.
Once you have developed a level of trust with your clients, value is the primary basis on which purchasing decisions are made. If you can communicate to the client that the value they will receive by investing in your service or product will exceed the cost of that investment by a meaningful amount (meaningful to them) you're almost certain to make a sale.
Remember to be BOLD, express your value and target your marketing efforts well. ...and yes, your success does start with a vision ...a Bold Vision.
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