The sun is shining, the white sand beach is lulling you into deep relaxation. Someone comes by offering you a life jacket, just in case. You wave them away, no need for that.
A bit later, while you’re out in the ocean, a storm suddenly whips up. The shore seems far away. “I wish I had that life jacket now” you think.
Same life jacket, different point of view about your need for it.
The same happens in business. There are many sunny days, weeks, or months and you wave anyway any thoughts of getting a life jacket ‘just in case.’ “We’ve got this,” you think. No need for preventive help.
Then revenue slows down, or costs increases, or your target market faces some upheavals.
Suddenly you’d really a like a life jacket to prevent you from drowning. But it can be too late.
Drowned after 30 years
I met the CEO and executive team of a medical device manufacturer. They had developed sophisticated tools used by neurosurgeons the world over. The demand for the tools seemed endless. No need for a life jacket!
But…their sophistication about medical devices did not carry over into their understanding about running their business.
Their terms and conditions were onerous: they had to pay suppliers upon placing their orders, but their own buyers didn’t pay until the devices were delivered, which could be three months later.
Cash flow was as bad as it could be. But when they were offered life jackets by a cash flow expert, and by a marketing and sales expert, and by an attorney, they turned them down.
“We’re okay, and we don’t have the money for outside advisors.”
When I met them, they had no cash on hand and were desperate.
Unfortunately, there was no life jacket for them at that point. They could not make payroll and they couldn’t pay their vendors.
The only solution was to sell the company for the value of their equipment and their customer list. Thirty years of building, doing research, getting patents, and the owners were left with nothing.
“What stood on the way of you getting a handle on this sooner?” I asked.
“We always thought we’d catch up. We never thought it would get this bad” the CEO said.
By the time they were looking for life jackets they’d been stranded way out at sea.
IMPACT Based Pricing is the Best Life Jacket
Every company’s pricing model—HOW they arrive at their prices—is a critical decision that affects every nook and cranny of the company.
IMPACT based pricing is the ultimate life jacket.
- Protects you from price competition. Why let other companies’ prices pull your firm down?
- Protects you from client complaints about bills and invoices. “You’re charging me for THAT?”
- Compensates your firm for the life changing IMPACT you deliver.
- Retains the best clients because it you’re rewarded for the creative offerings and innovative improvements your clients desire.
- Helps you have enough energy for high value clients, rather than spending time on low hanging fruit.
- is unlimited. Unlike hours, there is no limit to the life changing IMPACT you can deliver.
As your knowledge and expertise grow, the IMPACT you deliver also grows, and that’s reflected in your fees.
Profits grow as IMPACT delivered grows.
Be the Life Jacket to Your OWN Clients
Your beliefs predict your behavior. When you believe in time based billing, you’ll charge for the time you spend working on the inputs clients need.
When you believe that your firm delivers life changing IMPACT to your clients, you’ll adopt IMPACT based pricing.
You will think about and talk about how this life changing IMPACT is like a life jacket for your clients. They’ll never be stranded out at sea at risk of drowning.
In every field of knowledge and expertise there is the choice time based billing or IMPACT based pricing.
Choose IMPACT Based pricing. It’s the life jacket you need when you decide it’s time to take the plunge towards big growth.
Preventive vs Crisis Consulting
Preventive consulting is like a life jacket. As you venture farther and farther out to sea, you will not drown.
We at Trivers Consulting Group work with companies that want preventive advice, not crisis consulting.
The ocean has called to them and they’re eager to go for a long swim—build a bigger business with more revenue and profits.
And they want life jackets as they venture forth.
We Offer Life Jackets to Firms Like Yours
We’ve been advising knowledge based firms for a dozen years about how to adopt IMPACT based pricing. We’d like to be your life jacket as you embark on the next big wave of growth.
Call or text GROWTH to 703-801-0345 to let me know that you’re thinking about getting a life jacket. We’ll schedule a complimentary STARTER Call which will help you get started on your path to IMPACT based pricing.