Adopting Value Based Pricing, which is the only ethical pricing model for services firms, will lead to a complete makeover of the company’s systems and thought processes. It re-shapes everything you’ve been certain about. That’s a great benefit for growth-minded firms and their clients. Certainty can become a trap. Conditions change, and you must be … Continue reading Are You Trapped By Certainty about Your Pricing Model?
Once you’ve committed to implementing Value Based Pricing (see Step 1 COMMIT), it’s time to get started. Successfully implementing Value Based Pricing requires phasing it in. I never recommend trying to flip a switch. Step 2 PREPARE helps you begin the phase-in. No one succeeds without confidence and that only comes from intense preparation. The … Continue reading Every Accomplishment Begins with the Decision to Act
“How can we get our associates to embrace Value Based Pricing? Everyone is so used to living by the demands of their time sheets.” Three professional services firms’ owners and founders asked me this question last week. I hear you! Habits are hard to break and their impact goes deep. Value Based Pricing goes deep … Continue reading Are You Afraid to COMMIT to Value Based Pricing?
Do you see your firm’s profit goal a means to build owner wealth, as well as being an indicator of management effectiveness and a premium for the risk of being in business? Or is it a hunch? A dream or wishful thinking? Deeply subjective? Hunches are great for innovation and growth (I wrote the book … Continue reading Is Company Profit Also Building Your Owner Wealth?
Is 2021 the year you’re going to wear your investor hat rather than your owner hat? I hope it will be. You deserve so much more for all the risk you’re taking. Profit is the return on the investment risk the company owner(s) takes by being in business in the first place. Running a company … Continue reading Is Company Profit Delivering a Risk Premium to You As Owner?
Profit tells you how the company is being managed. It is the definitive measure of a privately owned services or knowledge based company. Is this a “duh” statement? I don’t think so. It’s easy to get caught up in the day-to-day activities and lose sight of the fact that privately owned firms are the embodiment … Continue reading What Does Profit Reveal About Management Effectiveness?
This year is devoted to PROFIT I am singularly focused this year on helping privately owned, expert knowledge-based companies make a profit from every engagement (sale) and increase their total annual profit. Why? 1) Profit tells you how the company is being managed. It is the definitive measure of a company. It is critical for … Continue reading What are You Doing to Increase Profit in 2021?
You’ll certainly get no argument from me about the relief we are all feeling as 2020 comes to a close. It’s been a difficult year in many ways. I’m inspired by the many companies that sat back in mid-March, asked themselves “What do we do now?” and figured out the way forward. Some early efforts … Continue reading How To Turn Lemons into Lemonade
I lived in an echo chamber of consultants for more than 7 years. I digested everything the leader wrote, said, and decreed. Everyone else repeated and reinforced his ideas. He created what he deemed best practices and heaven help anyone who disagreed. One day he verbally slapped me upside the head because I questioned whether … Continue reading Echo Chambers Kill Innovation and Growth
What’s the difference between a cupcake, a layer cake and a wedding cake? They all use the same basic raw ingredients and have a similar texture and taste. The difference is in the knowledge and expertise it takes to produce them. Anyone who can follow a recipe can make a cupcake. One needs a bit … Continue reading What Do Bakers Know that Your Services Firm Should Adopt?