When you are trying to figure out how to price your consulting, you’re really asking three related but very different questions.
Sure you want to know about the nuts and bolts about pricing.
You also want some insight into how to increase your fees and make more money consulting.
But ultimately, you want to know the answer to one key question: Am I getting paid what I am worth?
There are several reasons why you need REAL answers to these essential pricing questions. When you know how to price your consulting and can truly own the value that you create, you will be able to:
So, in this article, I am giving you my 5 Steps to the Getting the Price Right. But before I jump into the tactics, I want to get a few guiding principles straight:
Let's now look at the Five Steps To Getting the Price Right:
1. When you first get the call from a future client who expresses interest in your consulting, you have to be fully aware that the handoff from marketing to sales took place. That initial phone call or meeting is your first step in the Partnership Set Up process. By the end of your initial Discovery Meeting(s), you and your client need shared agreement on four things:
2. Once you have this directional agreement in place, you are now ready to proactively recommend the better solution your client can employ to resolve their business performance gaps and options of differing ways your client can work with you to deliver that solution. This part of your proposal provides a key way to offer on-the-spot value to your client because you are showing them the roadmap to solving their challenges.
3. Create at least three options for how your clients can access you and your expertise at differing levels of involvement that will translate naturally to differing price points. With your options, you are demonstrating in a tangible way the value that you can create for them that they would not receive on their own.
4. There is an art and science to pricing. I want to give you a formula to help you think about the science. Review the flow chart below.
The project that your client is about to engage in should achieve a financial return on investment (ROI). For example, if you are trying to help your client improve their net promoter scores, that translates to some serious project benefits in terms of revenue from new customers and reduction in marketing costs among other benefits.
And there is a huge return on your approach (ROA) that adds to the overall financial story. This information gives you a sense of what your fee range should be because it shows you the 10 to 1 return potential.
5. Layer in the art to your pricing. You have to consider your fees also from the point of view of your client and what is truly involved in the offer contained within each option. Your client is expecting a positive price/value so you have to make sure you are offering significant value in your options that will warrant the fees you ask for. It has be transparent enough that you can explain how you got to your numbers in a way that will make sense to your clients.
A lot of your pricing comes down to your mindset. If you always have the mindset that you not an expense that needs to be managed but rather an investment that yields a return, you will be well on your way to always getting the price right.
Getting the price right doesn't begin when you start working on your proposal. You have to set the stage from your first initial Discovery meeting. If you want to ensure that you are positioned for optimal credibility and contribution and maximum compensation, download my free cheat sheet "50 Power Questions to Win Over Your Next High-Paying Client". This cheat sheet is your perfect discovery meeting script. Armed with the exact questions to ask, you will start off your consulting engagement right.
This cheat sheet is inside "The Consultant's Quick WINbox" – my personal library of cheat sheets, visuals, videos and templates.
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It doesn't have to be this way! In my FREE guide and checklist "5 Simple Steps to a Consulting Value Proposition That is So Good You'll Want to Hire Yourself", I show how to uncover and OWN the unmistakable value that your consulting creates so you can overcome fear and doubt that keeps you from achieving your business dreams and goals.