As an independent consultant or coach, are you earning what you are worth?
One element of achieving that goal is charging fees that are consistent with the value you create for your clients.
Consulting and business coaching are especially well-suited for emphasizing value to the client when setting fees. Often there is no reference point tightly constraining the prospect’s expectation for the selling price, so you have more freedom from the “gravitational pull” of past and present prices. You can look at your services as providing a solution that creates value in the client’s business. To cite a few possibilities:
- Will it enable the prospect’s organization to grow revenue and margin?
- Reduce costs?
- Reduce assets required in the business?
- Lower their business risk?
You can then quantify each form of economic value based on research in the segment, or info gathered in prospect-by-prospect dialogue.
Let’s take the example of a business coach who works with companies where functional executives, over-focused on their own priorities, aren’t performing well. She has developed a methodology that consistently unites individual VPs into high-performing teams. As a result, companies that engage her achieve millions of dollars more in profits. A corporate executive who recognizes that isn’t likely to quibble over how much she charges compared to other coaches the company might employ.
Of course, there are also qualitative aspects of worth that her clients will care about—creating a better work environment and greater job satisfaction. Such qualitative reasons to buy could sometimes be most powerful in getting the buying process moving, with the economic value estimation providing the rationale that builds internal consensus for the buying decision.
You may have much more power over your fees than you might think. To learn more about how to achieve the goal of charging fees consistent with what your services are worth, check out Rainwerks’ virtual course, Pricing to Prosper!
Pricing to Prosper was developed by Robert “Bob” Sherlock to support independent consultants and business coaches through the tricky pricing decisions that come with being an independent service provider. When Bob began his independent consulting career he knew a lot, but wasn’t using an organized framework to guide his pricing decisions. Through Pricing to Prosper, Bob wants to provide you with an organized framework. His program will help you do a better job of organizing your thinking so you can make better pricing decisions and conduct your marketing and business development conversations in a way that supports your pricing aspirations.
Learn more about Pricing to Prosper.