Get Better Clients When You Stop Selling
If you are billing by the hour or charging by the session, then you’re using an outdated model. Many entrepreneurs continue to bill simply because they don’t realize a better method exists. However, you lose money when you base your service on hourly billing and you undervalue your expertise. Consider upgrading your business to a more lucrative and sustainable model.
Value-based pricing is the solution. This model attracts better clients, builds client loyalty and increases revenue. If you’re interested in working fewer hours, while increasing your income, then this is for you.
You may be thinking there’s some kind of trick to this. Not at all. Basically, you don’t need as many clients to earn more money when you shift to value based pricing.
Don’t Undervalue Your Expertise
When you consider what your clients want, they expect you to solve a specific problem. Simply put, your business is the solution to their problem.
The experience, knowledge, and expertise you’ve accumulated over time positions you as an authority. Your specific insight, known as intellectual capital, is exactly what they need. What you know, and your unique way of applying that knowledge, is highly valuable.
Problems rarely get resolved in one session or one hour. So why charge for time when that’s not what really matters most to your clients? It causes them to undervalue your expertise.Problems rarely get resolved in one session or one hour. So why charge for time when that’s not what really matters most to your clients? It causes them to undervalue your expertise. #getpaidwhatyoureworth Click To Tweet
Your clients would rather invest in solutions than time. In fact, they may even pay more for fast delivery. People pay premium all the time for overnight shipping. Could this concept be applied to your business, too?
Offering your services as a package emphasizes the result you deliver.
Lay out the groundwork before you start offering packages.
- Decide who is an ideal client.
- Define the biggest problem you solve for them.
- Determine the solution you offer.
- Delineate how you resolve that for them.
- Deliver the results.
Can you clearly explain how you help your clients? If you’re not sure, then set some time aside to talk with some of them. Ask what they valued most. Their answers may surprise you, because it’s usually something different than what you expected.
After you’ve gathered that info, put together a package that solves their problem. Remember to price it according to the value you deliver. The hours you work on their stuff is secondary. Time is more of a concern to you than it is to your client. Make sure the price reflects the invaluable expertise you bring to the table.
Yes, it’s a new way of looking at your work. You may initially feel uncomfortable when you present this to clients. The benefits to your business, however, are tri-fold.
- Clients perceive your business as a valuable asset and solution to their need.
- Pricing and payment based on value increase your revenue stream with no additional work hours for you.
- Your repeat business and referrals grow based on the results you deliver.
Stop selling clients hours or sessions. Don’t undervalue your expertise any longer.
The Shift in Client Conversation
The solution lies in your consultation. Don’t shy away from asking great questions. They’re tired of tolerating this problem. Your questions give them hope that you can help them.
Remember to focus the conversation on them.Value is subjective. So if you undervalue your expertise, then your potential client will do that too. #getpaidwhatyoureworth Click To Tweet
During a consultation you become the diagnostician. Think how your auto mechanic services your vehicle. First your vehicle gets diagnosed, next you’re informed about what’s wrong, and then you give consent before any work is done. It’s the same process.
Emphasize these talking points during your consultations.
- What do they want to accomplish?
- Where are they now and what steps have they taken so far?
- What are the obstacles keeping them from getting what they want?
- What is the cost of remaining stuck? Financially? Psychologically?
- What would be possible if they removed those obstacles?
Most entrepreneurs skip these client-centered questions. Instead, they go on and on about how great their service is. That’s pretty boring.
When you emphasize your client’s problem, rather than how remarkable your service is, you’ll stand out. It’s a refreshing approach.
Talking about your business too soon in the consultation is a mistake. First, focus on your clients wants, needs and desires. Once you’ve accomplished that, then you’ve earned the right to discuss your services and packages.
Take the Leap of Faith
Value is subjective. So if you undervalue your expertise, then your potential client will do that too.
Set aside some time to fully understand the value of your business. Then get comfortable sharing that information. This prepares you to have a value-based conversation with a potential client. Ask great questions before you offer your solution.
When you try to sell your time, you undervalue your expertise and skip the important client concerns. By asking great questions, you’ll uncover the exact issues that need to be addressed.
It’s possible that the client didn’t even realize these issues existed. Your expertise helps them understand the big picture before you ever talk about how you can help them.
Shift from selling to solving problems. Offer packages that emphasize the solution instead of time. Remember, your clients care more about solutions than time.
Are you seeing how value-based pricing and packages can apply to your business? You’ll build a deeper connection with each client. You’ll become a valuable resource to your clients. They’ll value your expertise.
The switch from hourly billing to value based pricing separates you from the competition. You gain authority status. Plus, your income grows without working additional hours.
Don’t undervalue your expertise any longer. Doing it the old way keeps you trading dollars for hours. As a business coach for entrepreneurs I can help you confidently shift to value-based client conversations. Schedule a complimentary private strategy session to get started.