There’s more to being a consultant than cracking open your laptop, deciding on your hourly rate, and acquiring clients. Consulting services are inherently intangible, complex, and often poorly understood. This makes them difficult to evaluate. Before you can get paid what you deserve, your job will be to overcome these obstacles to get clients to fully appreciate your value.
Know What Your Audience Values and is Willing to Pay for
As a consultant, your first order of business is to target a demographic that can afford you. If you don’t, you’ll either be working at a reduced rate or you’ll be spending way too much time justifying it — a waste of time (and money).
When was the last time you took a good look at your client list and thought about who were most profitable?
Next, understanding their psychographics and behaviors will provide insight into why they would hire you in the first place. This will give you insight into how much they might value what you’re offering and what they’re willing to pay. You’ll be able to communicate your value more effectively and set up service deliverables that are more meaningful to your clients. You may even get ideas for other compelling and more profitable services.
Get Clients to Come to You
What you can charge has a lot to do with how clients find you. Most of mine come through speaking engagements, referral, and some through search. A few contacts are the result of an article I wrote.
Potential clients don’t always understand what we do or the benefits, and there’s often distrust, so they rely on referrals or “samples” of our work. Attracting a client by reputation or referral is always more high converting than chasing clients. They already have a positive predisposition towards you, making for an easier close at a better rate.
Sell People What They Want; Not What You Know
Back in the day, I could sell my strategic plans for decent money, but something happened along the way to change that equation. Maybe the advent of the Internet and business at the speed of sound made people want something more concrete.
I had to reframe what I offered into what they wanted — a new website or more website traffic. We all know that you can’t create an effective website without a solid strategic foundation, so I still deliver that thinking but wrapped in a website, which is more tangible. In fact, working with clients to develop, ahem, strategic content, has become a point of differentiation. Clients think of it as getting a great website — something they value and are willing to pay for.
What they come to realize in the process is how much more value they’re getting — which means they come back for more. For many reasons, repeat business is always more profitable.
The More Differentiated You Are, the More You Can Charge
Carving out a differentiated space defends you against competition and may allow you to charge a higher price than the norm. Niching and a specialty can help you stand out from the pack, while making it easier for potential clients to understand your value.
When was the last time you checked out your competition?
To differentiate, you’ll need to research the competition the way a prospect might — that is, try a Google search and investigate the sites that come up. Do a detailed comparison and look for opportunities to set yourself apart so you can justify your fee.
Consultants aren’t just do-ers either. If your services are easily replaceable by the client (if they only had more time), Upwork, or Fiverr, you haven’t done enough to differentiate yourself or demonstrate your true value-add.
Educate to Solve the Consultants Dilemma
People need you for something they don’t know how to do themselves, yet they don’t know enough to value what you offer. That’s why you need to constantly educate clients not only about what you do, but what’s involved and your particular, differentiated methods.
They will come to learn what it really takes to do the kind of work you do, realize that they’ll never be able to do it themselves at the same level, and why you’re so much more valuable than the competition.
In my experience, the more I teach my clients what I do, the more they realize how much there is to know and what it takes to make it work. Understanding that value is what justifies my rate. Getting them results doesn’t hurt either.
Don’t Discount, Deliver Value
Never answer the question, “Why should I buy from you?” with “Because I’ve got the lowest price.” Price is not a differentiator unless you’re Walmart.
Rather than discounting, package your services with a high perceived value so customers feel they’re getting a good deal. Design it to meet their needs with clearly defined benefits and deliverables, and offer it at a flat and profitable price.
You might also consider offering something that doesn’t cost you anything — like a free ebook. Or even a free first :30 phone call — something you may need to do anyway to vet out a prospect. This will give you another opportunity to convince them that you’re the best choice and worth the price.
About the Author
When she’s not on the tennis court, Robbin spends her time as a Creative Marketing Strategist at Blockbeta Marketing. Originally from New York, she knows how to get right to the point. Love it or leave it, Robbin clearly sees the big picture to solve her client’s stickiest marketing problems and get results.
She’s the author of the “Homepage Homeruns” e-workbook and the book “Social Persuasion: Making Sense of Social Media for Small Business.”
Related articles:
How to Use Mind Over Matter to Acquire More Customers
10 Reasons Why Discount Pricing is Bad for Business
Package Your Services for a More Profitable Consulting Business
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