Hello - welcome to the weekly issue of THINK.ing Thursday to help you grow revenue and profit in your consulting business. My aim is to compel you to think, to entertain and to provide clarity - without the stuffy B.S. that seems to be the norm in Consulting content. If you enjoy the newsletter please forward it to a colleague. If this has been forwarded you can subscribe here
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💡 Tip: Simplify Your Pricing Structure To Shorten Sales Cycles And Avoid Confusion
Getting your pricing strategy right is key to driving cash flow and ensuring sustained business growth. Yet, one of the most common pitfalls I see among consultants is their approach to pricing structures and pitching methods.
Here's an immediately actionable tip to navigate to simplify your proposals.
Tip: Simplify Your Pricing Structure In Graduating 3'S
Currently, I'm working with a group of brilliant consultants in my Get Clients program, where we delve into pricing methodologies and pitching strategies. One piece of advice that I consistently underscore is the importance of presenting 3 pricing options to a client.
However, the common mistake consultants often make lies in the nature of those 3 options. They tend to offer three distinct services, thereby introducing unnecessary complexity into the decision-making process which means more delay and back and forth.
This often results in decision paralysis, as clients grapple to understand what they need to choose from an array of disparate offerings.
Made worse by the fact that rarely is it explained how or why they should choose between them.
You've introduced competition. Not from an external force but from your own offers.
Let me simplify it for you.
Imagine the three choices, not as entirely different services, but rather as varying degrees of engagement or service levels of the same offering.
It's akin to offering a small, medium, and large size of the same product.
This approach makes the choices relatable and easier for the client to comprehend.
Without overwhelm or complexity.
Here's the Top Tip: When presenting your three pricing options, ensure they are variations of the same service, rather than completely different offerings.
In the fictitious example above, a consulting company is helping a client find acquisition targets. The 3 offerings build on one another to the extent they include the wording from the previous.
The choice now becomes at what level of engagement the client jumps in - not what approach to take.
The consultants could have offered:
- To show key team members how to pre-screen the top 25 themselves in a 3 day workshop
- How to do the due diligence in a series of training courses
And each one of these would have created decision branches that compete against each other and ultimately increase the risk of no decision - as shown below
They all might be good solutions but they would have confused the issue at hand. Simplifying the decisions makes it easy to say yes or no to.
This approach will prevent your options from competing against each other and will instead facilitate a smoother decision-making process for your clients.
Remember, the goal here is to make saying "yes" to your proposal as straightforward and enticing as possible for your clients.
Therefore, focus on 'greasing the slides' with pricing options that resonate, make sense, and ultimately lead to more closed deals.
After all, simplicity is the ultimate sophistication.
If you'd like the full consulting pitch deck shown in the image above
it's one of the courses in Insider level membership
✔ HABIT: Always schedule the next action
I'm experimenting with the format - let me know what you think. Would you prefer humour or a habit every week?
The HABIT for this edition is simple to do IF you focus on it. And it is to schedule the next activity at the time of agreement. If you have agreed you will provide a proposal then set the day and time that you will meet them (Zoom/Physical) to present it to them.
Need to get back to a prospect in 3 months. Pencil it in the diary with them NOW.
This simple habit will shorten your sales cycle and speed time to revenue on deals.
🏹 Insight: The Value Bullseye
I've been using this model with clients for about 15 years and every time it makes a significant contribution to their client retention, follow-on work, case study and testimonial creation and front end client acquisition. Use it.
Selling the value of what you do is one of the most challenging areas for many consultants.
There is so much to consider:
- Who is my target market?
- What is the proposition that I am offering?
- How do I get meetings (Zoom's!) with busy business people?
- I’m looking for ways to sell higher and deeper into organisations
- How do I break through the ‘SMADD’ disease that clients and prospects have – that’s ‘Sales Message Attention Deficit Disorder’!
- How do I get more referrals?
- How do I prove our worth to an organisation so we don’t have to compete on price?
- How do I get clients to value what we have just done for them?
The good news is that I am about to share with you 3 core components of value that you can use in your business to help you with these challenges and more.
The best news is that very few people work on the outer ring of the value bullseye I'm about to share with you, let alone excel at the inner ring.
🔥 New: Humanlinker
This is a chrome plugin that sits on top of Linkedin and tells you the behavioural style (or what it thinks it is) of people you check out. It will then develop appropriate wording to use to call email them and even offer variations based on different scenarios i.e prospecting v follow up.
I have to say i find these services generally very good and offer a simple way of thinking about communication styles which is a far more complex subject. At $20 a month and free searched it's worth a play if this 'floats ya boat'.
You can check humanlinker out at the link below:
📚 Knowledge: AI Research Paper Analysis
When I did my Batchelors I had to use 'microfiche' machines to search through past research papers. Now you can get that at the speed of light and have AI summarise it for you.
I've been looking into new knowledge databases that tap into academic research. One I like at the moment is typeset by scispace which gives you access to academic research and allows you to ask it questions and run specific AI instructions like 'explain the practical applications of this paper'
Tools like this are immensely valuable in helping you assimilate and draw real-world applications of the academic research that exist. A great way to build your expert positioning.
That’s a wrap!
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Thanks for reading,
Want to learn more from me? Here's a few options:
🎣 Get Consulting Clients: The Ultimate Course On How To Win Consulting Clients Quickly
🤝Work with me 1 To 1: I love helping advise Entrepreneurial Consultants to break through their roadblocks and build unstoppable momentum, I find it’s an amazing way to help give clarity, strategy and the next steps to get you results - fast.
🏢 Have a Consulting Business Over £500k - I have a number of consulting programs to audit and grow your offer creation, marketing and sales. If you want to grow revenue and profit quicker than you could on your own, let's talk.