We Can Learn from Poor Fit Clients
As professional services providers, how should we engage with poor fit clients before we refer them on to someone else? Before we let them go, we can learn from them.
The Price and Value Journey is presented by John Ray and produced by the North Fulton studio of Business RadioX®.
TRANSCRIPT
John Ray: [00:00:00] Hello. I’m John Ray on the Price and Value Journey.
John Ray: [00:00:04] Do you want to be a commodity or a problem solver? If you want to work with clients who are a better fit for you and earn higher prices for your engagements, then the answer is clear, right? If, however, when someone asks the “what are your rates” question, and you respond by quoting figures and sending out a price list, then you’re in the red zone of positioning yourself as a commodity.
John Ray: [00:00:34] Now, when I’m asked the “what are your rates question” as kind of the opening question in a conversation with a client, I typically go straight to the “I don’t think we’re a good fit if that’s your primary focus”. Now, my answer to the “what are your rates” question that comes really early in a conversation is to go, typically, I go straight to the “we’re not a good fit” answer.
John Ray: [00:01:03] Now, some push back on me and say it’s better to offer a quote, because if the client passes out on whatever range of quotes that you offer, then no amount of value exploration will bridge the gap, and I get that point, but here’s where my approach to this situation could potentially shortchange me in another, more subtle way. When I respond to the “what are your rates” question with the “we’re not a good fit” answer and refer them on to someone else, I could be passing on an opportunity to learn.
John Ray: [00:01:41] You see, there’s something to be learned in any conversation with a client, which focuses on the needs, the hopes, the problems, and the values of that prospect. If you’re asking the right questions, you’re getting more data points that can be applied to other clients and other situations that you encounter. You’re learning and you’re becoming that much better at whatever professional services discipline you practice.
John Ray: [00:02:08] I read a blog post not long ago by a gentleman named Pye Jirsa. He’s the founding partner of Lin & Jirsa Photography. And here’s what he said, “It’s your responsibility to dive into the client’s psychology, to figure out what they want and what they value, and help them find a product that is going to suit their needs. In doing so, this process will make you a better photographer.”
John Ray: [00:02:37] Take that quote and fill in the blank of whatever you are. The point of it is we’re here to help and we’re here to serve. And even those clients that we perceive to be thrifty, we’ll call them, and not a good fit for you, they need help finding the place that they can get help. That may be your book. It may be a course. It may be some other way for them to get information that helps them along the way, that fits the budget that they have to solve the problem that they have.
John Ray: [00:03:09] Even if you find out that the person is sitting in front of you is a miser who will not pay based on the value you deliver, you’ve learned something about their problems, which can be applied to all clients, and particularly, of course, clients who are a better fit, and you’ll do a better job for those future clients. There are some clients, of course, who are so price-sensitive that they’ll refuse even the most basic conversation over their needs and problems.
John Ray: [00:03:39] They’ll refuse to sit with you and share anything until they know what you’ll charge. So, for me, at that point, there’s no real point in engaging with someone that’s so focused only on price. Whatever your approach on the “what are your rights” question, do every interaction with a client as an opportunity for professional development. You’ll be a better problem solver and you’ll earn higher fees for your services as a result.
John Ray: [00:04:11] I’m John Ray on the Price and Value Journey. Past episodes of this series can be found on your favorite podcast app or at pricevaluejourney.com. And if you’d like to connect with me directly, you can do so by sending a note, john@johnray.co. Thank you for joining me.
About The Price and Value Journey
The title of this show describes the journey all professional services providers are on: building a services practice by seeking to convince the world of the value we offer, helping clients achieve the outcomes they desire and trying to do all that at pricing which reflects the value we deliver.
If you feel like you’re working too hard for too little money in your solo or small firm practice, this show is for you. Even if you’re reasonably happy with your practice, you’ll hear ways to improve both your bottom line as well as the mindset you bring to your business.
The show is produced by the North Fulton studio of Business RadioX® and can be found on all the major podcast apps. The complete show archive is here.
John Ray, Host of The Price and Value Journey
John Ray is the host of The Price and Value Journey.
John owns Ray Business Advisors, a business advisory practice. John’s services include advising solopreneur and small professional services firms on their pricing. John is passionate about the power of pricing for business owners, as changing pricing is the fastest way to change the profitability of a business. His clients are professionals who are selling their “grey matter,” such as attorneys, CPAs, accountants and bookkeepers, consultants, marketing professionals, and other professional services practitioners.
In his other business, John is a Studio Owner, Producer, and Show Host with Business RadioX®, and works with business owners who want to do their own podcast. As a veteran B2B services provider, John’s special sauce is coaching B2B professionals to use a podcast to build relationships in a non-salesy way which translate into revenue.
John is the host of North Fulton Business Radio, Minneapolis-St. Paul Business Radio, Nashville Business Radio, Alpharetta Tech Talk, and Business Leaders Radio. house shows which feature a wide range of business leaders and companies. John has hosted and/or produced over 1,300 podcast episodes.
