In July 1973, the New York Mets were in last place. During an emotional team meeting, pitcher Tug McGraw jumped up and shouted “ya gotta believe!” That became the rallying cry for the team and the fans. It—and some great playing!–took the Mets from last place to the World Series in 1973.
With three simple words McGraw ascended into leadership role that turned an abysmal season into a championship one.
Every CEO, Owner, Founder, and Managing Partner can do the same.
Beliefs About Pricing that Will Make Your Firm a Winner
CEOs, Owners, Founders, and Managing Directors call me.
They show me their revenue and their profit as evidence that hourly billing is working. Their firms are not floundering or on the brink of extinction.
Why do they call? Because in their heart and in their gut, they know that hourly billing is hurting their firm. They fear that one day the progress will slow down and could stop altogether.
They hope that working with me will help them believe that IMPACT based pricing will secure their firm for years to come.
And, of course, make more money.
“Ya Gotta Believe!”
I start with this simple imperative:
If you don’t believe that IMPACT based pricing is better for your clients and for your firm, you’ll fail.
10 Beliefs that Make IMPACT Based Pricing Successful
Beliefs on Behalf of Clients:
- Clients deserve life changing value—in other words, outcomes that have an IMPACT on their lives
- The sooner the work is completed, the sooner the client begins to enjoy the life changing IMPACT they were promised.
- The clients should be confident that the exact right expert is working for them.
- If the work takes longer than predicted, the client does not pay any more.
- Hourly billing is focused on a measure of time that has no intrinsic
Beliefs on Behalf of the Firm
- We should be compensated in proportion to the IMPACT we deliver.
- Knowledge and expertise do not unfold in even 60 minute increments, therefore getting paid for time is a complete disconnect from our knowledge and expertise.
- Our expertise allows us to effectively estimate the scope of the work so we will not be underpaid.
- We can offer clients unlimited access to our experts as needed, for a fee commensurate with the IMPACT that access delivers.
- Revenue and profit are unlimited because, as our knowledge and expertise grow, the IMPACT we deliver increases, and we earn proportionally higher fees
Just as the 1973 Mets had to overcome naysayers, some bad habits, and some bad calls, your firm will have to overcome objections.
The most frequent objection is self-inflicted! “Everyone else in (our industry) charges by the hour. We can’t be the only firm that doesn’t.”
I’m flabbergasted every time I hear it.
I hear that you’re not doing the most important job an owner or executive must do: lead the way to meeting your profit goals.
When you look to see what others are doing, you’re outsourcing your leadership to them. That’s simply crazy!
The next most frequent objection is “Our clients want to pay by the hour.”
Have you ever asked why this is? No, because (you guessed it) “everyone else does!”
Coming Full Circle
And now we return to the where we started: You have got to believe that IMPACT based pricing is the absolute best pricing model for the client as well as the firm.
Once you believe it, you’ll enthusiastically regale your clients with success stories. They will enjoy that same success.
IMPACT based pricing ensures that as they make progress, you’ll help them build on that progress, up and up the ladder of success.
When you believe it, they will begin to believe it. After all “ya gotta” believe started inside the Mets’ Clubhouse.
Are you ready to believe?