“They ask about the fee and how many hours and then complain about how much per hour.
That’s why I have not made any changes in our pricing.”
This was a raw admission by a firm owner. I had suggested two different pricing methods and she’d “never had time” to work on them.
It turns out she was afraid that prospective clients would object. Nastily.
When I asked how many people in the past 6 months had done this, she hesitated and then said 2 or 3. Out of how many? Dozens!
I am sympathetic to the human feelings we all have, even those of us in Ownership/Executive positions. Yes, we’re pretty strong, have learned the necessity of thick skin, and to shrug off the worst behavior from prospects and clients.
But we are still human, and a sting can last a long time.
I tried to help her put this in perspective.
The vast majority of people who call are curious, eager, and excited for her company’s help. They know it will change their life and that’s what they want.
They’re fed up with chaos and want her help to bring order, efficiency, and comfort to their lives.
If she remembers this, and repeats it every single day, to everyone she meets, she can dim the nasty voices pretty well.
That will free her to make the pricing and other decisions that she has to make.
Compare to huge consumer companies
I generally hesitate to compare small and medium professional and B2B services firms with consumer products companies.
But when it comes to choices, it helps to think about some of the most successful: Apple, Amazon, Bank of America, and so on.
These companies know that not everyone, in fact likely a huge percentage of the population, will be their buyers.
They don’t cater to them.
They design their products, their prices, marketing, sales, and services for those who do buy.
If the actual buyers are thrilled, they make plenty of money.
Your firm can do the same
It starts with your Great Fit Client profile.
Which is about psychographics, not demographics.
What do I mean?
Have you heard that Warren Buffett still lives in the modest home he bought in 1955? His psychographic is that he prefers low key, low cost living. That’s fine.
On the other hand we all know people who seek out the best. They want beautiful things, to have a certain kind of elegance or style or bragging rights. That’s their psychographic.
Psychographics are not synonymous with demographics.
Your Firm’s Great Fit Client profile
(Note: I do not buy into the idea of an Ideal Client Profile (ICP). No one person will meet every requirement if yours is stringent, or everyone will meet it if it’s not. Neither is helpful.)
The Great Fit client will meet 75-80% of the psychographics on your list.
Here are my top suggestions for psychographics:
- Willingness to get and pay for outside help
- Eager to take bold or big steps, not just make small incremental changes.
- Have a lot of curiosity. They don’t try to know everything; they turn to you to fill them in.
- Willingness to trust those who know what they don’t know.
- Committed to taking action when required.
Great Fit Clients for your particular area of expertise may need other psychographics. Add to this list as needed.
Where is money in all of this?
Of course, the ability to spend is critical to engaging with the client. Plenty of people have money they don’t want to spend, and others don’t have money even though they’d like to buy.
Your discovery call will elicit the information about money. You might be talking to a prospect who meets most of the psychographics on your list but then doesn’t have money to spend now.
That’s unfortunate, but it’s very different from someone who doesn’t want to spend money that they have. Keep this person on your cultivate and nurture list.
What did this Owner do?
She immediately felt a sense of shock and recognition.
“Yes, I’ve been letting the nastiest ones run my business!”
Then we began to test out the two pricing models I had suggested. She will continue to think about them a bit and then choose one.
I will support her every step of the way.
And you?
Do you have a hunch that some nasty prospect is affecting your thinking about pricing? That’s so normal.
And it happens both ways. Replace that one with the thrilled client, who loves how you give them choices and proportional fees. Keep their gratitude and praises top of mind when making business decisions. When you do you will find more like them and that is the way to grow your company.
Need some pricing and/or moral support?
Text SUPPORT to 703-801-0345.