October 2006
October 27, 2006
LETTING GO
I had big goals for Bold Vision this year. Here we are rounding the corner to year-end and while I’ve accomplished some of the objectives I set, it hasn’t been the year I had hoped. Yesterday I returned from a few days away, some of the time I took to reflect back. In planning for 2007 I had to work through some of the disappointments of 2006 and, in doing so, came to a realization. Moving forward sometimes means to just let go.
Whether it's, lack of time, perfectionism or procrastination... underlying our lack of or disappointing results is either a core negative belief or a constellation of conflicting beliefs. If the disappointing results weren’t enough, we beat ourselves up about not getting the work done, not having enough time, or not being disciplined enough.
Sound familiar?
Whether your challenge is about a particular project, issue or an ongoing pattern, the more you struggle, the worse it is. Continuing to do battle with the behavior or belief is like trying to accelerate out of a snow bank...you spin deeper and deeper into the drift.
Here's the key to getting unstuck...accept what is, as it is, right now. You don't have to like it, but you do need to accept it.
This simple shift into acceptance will free you. It may be just the first step, however acceptance opens up choices. In the end it isn’t about right and wrong, it’s about choices. Letting go will free you to choose.
So, my question to you this week is...what one thing could you work on accepting that would give you some freedom and new found energy?
Let me know what you're working on.
Thank you to Susan Fuller for sending me the idea for this post.
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October 11, 2006
The Value of Your Service - From your Client's Perspective
I received the following comment on last week's BLOG entry "Value is Value":
“I've often tried to get away from the "what's my time worth" paradigm and into "what value can I deliver." However, how can I tactfully find out what a prospect's business is doing, how much they're paying for X, what the changes I'm suggesting might mean in actual dollars?”
This is a classic conundrum of all service professionals; what is the true value of the service to the client? Furthermore, once you, the service professional, recognize the value your service will bring to the client's bottom line, you must communicate this to the client. Again, it’s not what you think your service is worth – it’s what they think your service is worth.
The first thing you'll want to do is to direct the conversation AWAY from "The Solution". Solutions, in and of themselves, are commodities. In fact, solutions in the discussion phase are not real solutions at all; they are intended solutions with no value at all.
What is a solution, you ask? It’s whatever a client asks you for. We want "….", Do you "….", We need something that can "…." "......", that’s the solution.
NOT talking about the solution is a tough thing – for you (and me) and the client. Talking about the solution keeps the discussion in everyone’s comfort zone, We know our product / solution; we know it upwards, downwards and sideways. Another thing, talking about the solution keeps us from having to ask difficult, sometimes uncomfortable questions.
Our clients, on the other hand, like talking about the solution because
It keeps the ball in your court and the onus on you to keep the discussion going.
The solution is their silver bullet. The solution is the answer to their problems… or, is it? What problems would those be exactly? And there-in lies your value.
Here's a great quote that goes something like “No one needs a drill. They need a hole in something.” To determine the value of the drill - you need to understand the value of the hole. You have to find out the issues and problems the client is experiencing by not having that hole and what those problems are costing them. In turn, find out what will the client be able to achieve with the hole that they aren’t achieving now.
Being human, we all make decisions based on 1 of 2 needs; #1) to reap a a benefit - to bring us closer to a reward; or #2) to take away a pain we're experiencing. Not everyone is motivated the same way so you need to know your client and what motivates them more - reward or relief of pain.
Consider this example: You're a web designer. A common question / request you probably get goes something like,
"Can you help me redesign my website?"
Before you get lost in your sales spiel about how big and bad you are in the web design world and wax on about all the great sites you've designed.... (this would be the solution) redirect the conversation to the client's motivation for asking the question.
Here are 3 approaches you might use to re-direct the conversation:
You: Yes, we have developed hundreds of websites for clients around the world. What results do you expect to achieve with a redesigned website that you’re not getting today?
You: Yes, we have developed hundreds of websites for clients around the world. It would help me if I better understood the issues you’re having with your current site that a redesigned site would address.
You: Yes, we have developed hundreds of websites for clients around the world. What kinds of problems are you experiencing by not having an effectively designed website?
Most of us get certain questions and comments about our services fairly regularly, right? "Do you .…. I need ….. Can you .…." Take some time to write down the top 10 or so questions you get and write responses for each directing the conversation away from the solution. Doing so will make it easier and more comfortable for you to uncover the client’s real issues as well as their motivation for making a decision. This will lead you to the value your solution will bring.
Simple? Yes. Easy? Of course not. If it were easy, we'd all be rich and famous. It takes a real desire to help your client succeed, time, practice and …you guessed it. Boldness. Be BOLD.
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Developing a reputation as an expert in your field of practice is critical in establishing a trusting and solid relationship with your clients. Promotion Action is a series of 6 workshops developed specifically for the service professional to help give them the information of how and the coaching to implement a process to become recognized as the go-to person in their area of expertise.
Promotion Action is a program delivered on site, in Portland, Maine beginning November 7th and via teleconference beginning November 9th. A free introduction telecall is tentatively scheduled for October 31st. For more information please go to www.promotionaction.com or call Bold Vision Consulting at 207-221-3492 for more information.
October 02, 2006
It's About Value - not Time.
“It’s different here. This is Maine and you can’t charge the same as you can in ________”. You fill in the blank. Have you heard that one? If I’ve heard it once I’ve heard it a hundred times.
The statement is part true, I’ll admit. This IS Maine.
However, if you have done your homework, if you’ve developed a level of trust with your client and if your client - no matter where they are - if your client values your product or service to the same extent your clients in ____________ do, you can charge the same as you can in _____________. If your customers won’t pay what you think your product or service is worth you’re blaming the person. Purchases are made based on perceived value, THEIR perception of value, not yours. If your customer doesn’t perceive the value, they won’t make a purchase. Period.
So the question isn’t, “Why won’t they pay?”. The question is, “Why is there a disconnect between your perceived value and the customer’s?”.
Let’s say you’re Jane Doe, an internationally recognized oil and gas attorney.
Situation #1: ExxonMobil wants to gain the approval of the Peruvian government to drill off their southern coast. If they receive the approval to dig it would mean hundreds of billions of dollars to ExxonMobil and the company has asked you to assist them. They’ve asked you to attend a 1 hour meeting they’ve scheduled between the CEO of ExxonMobil and the Peruvian government in an attempt to gain drilling approval.
Situation #2: Murphy Oil, a small oil company in El Dorado, Arkansas is considering purchasing a Malaysian deep-water lease from Royal Dutch Shell. This is a pretty standard transaction in the oil industry, however the services – about an hour to be exact - of an experienced oil and gas lawyer is still needed to finalize the documents.
The lawyer is the same in both situations; Jane Doe. The time requirement is the same in both situations; 60 minutes. Is the fee Jane charges the same? No. Why? Because Jane’s fees aren’t based on the time she gives the company. Her fees are based on the value she gives the company. Furthermore, the value isn’t what Jane perceives it to be. It’s what the company perceives they gain by hiring Jane.
Think: providing value – not providing time.
Let’s try another comparison. You’re John Smith and you’ve relocated to Portland from Boston after 15 years as Vice President in State Street Bank’s retail advisory services division. You’ve started your own consulting business with a specialty in helping retail businesses.
Situation 3: In about 20 hours of consultation work, John is able to help his retail clients streamline their operations and maximize the sales per square foot so they see increased profits, on average, of 50%; some even more.
Question: What is John’s service worth? $100/hour? $500/hour? The answer is yes… and no.
If you are a retail store owner and your annual profit averages about $3,000 net of your salary and all expenses, a 50% increase would be $1,500. While 50% is a good improvement in profitability, an investment of $100/hour or $2,000, not to mention $500/hour, wouldn’t be “worth it” to that client.
On the other hand, if you’re LL Bean and your net annual profit is $500 million, a 50% increase means an additional $250 million. I’m pretty certain that John’s 20 hours would be valued a lot more than $500 an hour and I’m sure John would be paid a lot more than $500/hour by LL Bean.
These scenarios are easy to grasp because value in these cases are easily expressed in dollars and dollars are the primary gage most businesses use in determining investment value. If your product or service addresses the more “intangible” business challenges – those not easily translated into dollars, i.e. procrastination, lack of accountability, low moral, etc. - it’s important to do what you can to help your client put a dollar figure on the dollar “value” of what they will gain working with you; Or the flip side; what it will cost them if they do NOT work with you.
No, dollars aren’t the only indicator of value. In a highly competitive, small business marketplace where budgets are limited, it is a good place to start, however.
Once you have developed a level of trust with your clients, value is the primary basis on which purchasing decisions are made. If you can communicate to the client that the value (the ROI-return on investment) they will receive by investing in your service or product will exceed the cost of that investment by a meaningful amount (meaningful to them) you’re almost certain to make a sale.
Remember to be Bold, express your value and target your marketing efforts well. …and yes, your success does start with a vision.
Promotion Action is a program where service professionals establish and implement an action plan that will help differentiate them in a competitive and crowded marketplace. By becoming recognized as an expert in your field your value proposition becomes less cost-centric. The next Promotion Action program begins November 7 in South Portland, Maine. If you’re not in the Greater Portland, Maine area, Promotion Action Teleclass begins November 15. Link to www.PromotionAction.com for more information.
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