Thursday, April 14, 2011

Pricing your Consulting Services


This model is meant to help those consultants who are struggling to get it right with the clients, who feel they are exploited by the clients and do not have a way to stem the rot, who feel that clients cannot appreciate their expertise or their efforts, who in general find it difficult to put the right price tag to their services. For more assistance on this model, call me (+919099189174) begin_of_the_skype_highlighting            (+919099189174)      end_of_the_skype_highlighting. Or send an SMS if this helps even a little bit.

2 comments:

  1. Good model and certainly will help. There is only one glitch- it fails to evaluate the Customer Percieved Value of a project executed.

    More often that not, I have seen my freelancer buddies failing to fetch a good rate for his work since Clients fail to understand the kind of work that goes behind and feel the Perceieved Value is lowere than what has gone in.

    A live example, my friend won an offer to design a logo unit for a small financial firm. We had suffered in the past as we did not build a big enough story to sell our work. This time, we did, much like what a Landor or similiar agency would, a whole dossier on what we had done and how this graphic was the best to represent the brand, its values and its industry logic.

    The logo got accepted, but the client got into an ugly circle of negotiation on price; though we had agreed on a price earlier. Biggest argument, 'Its just a logo unit- more like a one day job'. End result was we took 60% and walked away coz we needed that money. Ironically, this same client had paid twice to have a 2 min movie made from youtube content.

    Customer Percieved Value plays a major role in getting the rightful price. Sadly, very few realize the effort or are involved enough to understand the process and outcome.

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  2. Customer Perceived Value... I understand what you mean. However, think of pricing as a signal mechanism. You wanna signal to the people who are willing to understand you instead of trying make those people understand who do not intend to understand.

    Since Customer Perceived Value changes with different sets of customers, you need to figure out those sets who are amenable to understanding your expertise. If you know they can't see value, do not be optimistic about getting your compensations... "It's just a logo, you see. One day job!"

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