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George Westinghouse and the Value Equation

February 11, 2022 by John Ray

George Westinghouse
North Fulton Studio
George Westinghouse and the Value Equation
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George Westinghouse

George Westinghouse and the Value Equation

The Current War is a movie based on the competition between Thomas Edison and George Westinghouse to determine whose vision of the electrical power delivery system in the United States would be implemented. In the movie, the character of George Westinghouse offers a compelling description of the value equation, which he used to his advantage. It’s a lesson for us as professional services providers. 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] I’m John Ray on the Price and Value Journey. I recently heard some words from George Westinghouse on the value equation. Well, it was probably not George Westinghouse himself, but actually the words put in his mouth. You see, I was watching a movie called The Current War, a movie which tells the story of the race between Thomas Edison and George Westinghouse to sell their competing visions of an electrical grid in the late 1800s. Edison pushed his original vision of direct current, while Westinghouse championed alternating current. Westinghouse’s vision won as alternating current was much more effective and less costly to distribute over long distances.

John Ray: [00:00:55] At one point in this movie, Westinghouse says, “The value of something isn’t what someone’s willing to pay, but the value of something is what it contributes.” This statement is the value equation at work. When a client assesses your service or product, they are judging the contribution your services will make to their business and their life. For them to buy, they must perceive that the benefits they will receive, whether in money earned, time saved, pleasure derived or something else is more than the price they pay. The only person who can determine this value is the client. It’s their perception, their determination of that contribution.

John Ray: [00:01:46] As depicted in the movie, Westinghouse used the value equation to his advantage. After Edison reneged on paying the talented inventor, Nikola Tesla, a promised $50,000, Tesla quit and Westinghouse pounced. He offered Tesla a royalty of $2.50 per AC horsepower, which would amount to much more than the flat $50,000. Tesla accepted and Westinghouse’ vision was on its way to realization.

John Ray: [00:02:22] The actual history is a bit more complicated, but the movie illustrates the point quite well. All Edison saw is that $50,000 was an immense amount of money. His ego kept him from seeing Tesla’s value. Tesla has no perceived value to Edison. Westinghouse, on the other hand, saw that the long-term contribution Tesla could make to his company dwarfed even a royalty payment like the one he proposed. The value which was at stake was immense. The opportunity to build the electrical grid for the entire United States.

John Ray: [00:03:06] That’s the value equation at work, Westinghouse and Hollywood style. It’s utilized by the buyer in every transaction. I’m John Ray on the Price and Value Journey. If you’d like to connect with me, go to Johnray.co or email me John@JohnRay.co.

 

 

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 The Price and Value Journey
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 1,100 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: George Westinghouse, John Ray, Price and Value Journey, pricing, professional services, professional services providers, solopreneurs, value, value equation

Ignore The Pricing Advice of Friends and Family

February 9, 2022 by John Ray

pricing advice
North Fulton Studio
Ignore The Pricing Advice of Friends and Family
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pricing adviceIgnore The Pricing Advice of Friends and Family

Friends and family may assist you in your professional services practice in a lot of ways, like referring clients, for example. Accept that help and be thankful, but ignore their pricing advice. They mean well, but what they tell you, if implemented, could be damaging to your business. The Price and Value Journey is presented by John Ray and produced by the North Fulton studio of Business RadioX®.

TRANSCRIPT

Hi,. I’m John Ray on the Price and Value Journey. If you want bad advice on pricing your services, go ask your friends and family. I’m deliberately overstating the case here, but not by much. One problem with friends and family is that they are well-meaning and they want you to succeed. And because they want you to succeed, they give you advice. And they may fall for that common misunderstanding that a lot of folks have that cutting your prices actually attracts buyers.

Now, price cutting may work sometimes for a can of green beans, let’s say, but you’re not a can of green beans. Discounting professional services transmits a signal of inferiority to potential buyers, leaving them scratching their heads and wondering what’s wrong. Now, in some cases, you might be giving the friends and family discount, in which case they don’t have any sense of value delivered relative to the price you charge. And it’s why I’m not a fan of friends and family discounts – at least. One reason.

Then, there are those so-called friends who are wallowing in their own business misery, they’re not charging enough for their own services and they don’t think anyone else can, either. And since they are struggling, they don’t want anyone else to get up out of the mud, either. These folks aren’t really your friends, but that’s another topic altogether.

If you want to get a better sense of how to price your services, ask someone who had no connection to you otherwise before they hired you, who has paid full price. Ask them what they’ve gained because of your intervention. Is it more time? Less stress? Then, ask them what their life now looks like with the time they gained and the stress they’ve unburdened. What’s all that worth to them? How are you pricing relative to that value you’ve delivered?

Further, if you dare ask someone who turned you down while they did so. You’ll be surprised to find, in a lot of cases, that they thought your price was too good to be true relative to the service offering you proposed.

Your friends and family may want you to succeed, but they won’t tell you all these things. So, ignore their pricing advice. I’m John Ray on the Price and Value Journey. If you want to connect with me directly, go to my website, JohnRay.co or send me an email, John@JohnRay.co.

 

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 The Price and Value Journey
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 1,100 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: advice, discounts, friends and family, friends and family discount, John Ray, Price and Value Journey, pricing, professional services, professional services providers

Pricing and Urgency

February 7, 2022 by John Ray

Pricing and Urgency
North Fulton Studio
Pricing and Urgency
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Pricing and Urgency

Pricing and Urgency

Some clients feel little urgency to engage with you, or maybe they just want samples of what you offer. Others want the transformation you will bring them today, assuming they can’t get it yesterday! Your pricing should reflect the speed of the solutions you deliver. A story on pricing and urgency in this episode. The Price and Value Journey is presented by John Ray and produced by the North Fulton studio of Business RadioX®.

TRANSCRIPT

And hello again. I’m John Ray on the Price and Value Journey. Recently, I saw a truck with a homemade sign on the back, which said, “I only have second gear. Go around.” It got me thinking about pricing and urgency. Now, this guy had decided there was no compelling need to fix his transmission and his pickup truck. His urgency factor is not just zero, it seems to be less than zero. He’d rather drive over to the hardware store in second gear, of course, and purchase stick on letters to alert drivers who come up behind him. He’s clearly not ready or willing to pay for a new transmission.

The degree of urgency a client possesses for your solution to their problem is a client value. Your pricing should reflect that value whatever it is. If you’re a bookkeeper, for example, there are some clients who want their financials faster than others. There are some who want monthly numbers. Some are content with quarterly. Some clients are satisfied to ride around in second gear using your services to get their financials done yearly just in time for tax return preparation.

If you’re a business or leadership coach, you’ll have clients who call you up exasperated with their situation, and they want a deep dive into your solution as fast as they can get it. There are also some clients, who maybe for budget reasons, are okay with incrementally, over time, enjoying the results you’ll help them retrieve.

Then, there are clients who just want to read your book, or maybe come to a workshop or absorb whatever you post on your blog or social media. They’re content to ride around in second gear, and that’s okay, by the way. Some of those folks will decide at some point that they want to move their business faster, and they will call you to get that new transmission.

Whatever your service’s discipline, your value conversation with a client should always include questions which help gauge urgency. The pricing options you offer, in turn, should reflect the speed of your solutions. And John Ray on the Price and Value Journey. If you like to connect with me further, go to JohnRay.co or email me at John@JohnRay.co.

 

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 The Price and Value Journey
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 1,100 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: John Ray, Price and Value Journey, pricing, professional services, professional services providers, sense of urgency, urgency, value

How are You Really Doing?

February 4, 2022 by John Ray

how are you really doing
North Fulton Studio
How are You Really Doing?
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how are you really doingHow are You Really Doing?

“How are you really doing?” I offer a story on how asking this question of a client yielded unexpected answers. This client’s responses disrupted my agenda for the conversation, but led to ways to provide extraordinary value I might not have known without digging deeper. The Price and Value Journey is presented by John Ray and produced by the North Fulton studio of Business RadioX®.

TRANSCRIPT

And hello again, I’m John Ray on the Price and Value Journey. How are you really doing? Chick-Fil-A employees are known for responding with “My pleasure” to the thank you they receive when they hand over the food. It said that Chick-Fil-A founder, Truett Cathy, got the idea from the Ritz Carlton and made the practice standard at his company.

Recently, I was at a Chick-Fil-A, I received my order, and somewhat absentmindedly responded with, “Awesome! Have a great day,” instead of “Thank you.” Our server responded with, “My pleasure,” a response which while fulfilled the company mandate didn’t quite fit the situation. The server’s mistake is hardly isolated. I’ve done it several times myself and more than several times actually responding with the rote script, if you will, which all of us use in our daily lives without thinking too much about it.

So, what would it look like in a conversation with a client or anyone else, for that matter, if you turn that script on its head? What would happen if the conversation started this way?

You: How’s it going today?
Client: Okay. How about you?
You: Great. And how are you really doing?

I did that not long ago, and I could sense that something wasn’t right with this client and I said, “Okay, you’re doing fine. But how’s it really going with you right now?” This client proceeded to tell me how personally dragged down they were with their practice, how they lost enthusiasm for waking up and diving into the day.

My intentions for the conversation suddenly shifted. “Why do you think you feel this way?” I responded. Quite some time later, we ended up in a much different place than I could have originally envisioned when the conversation started. While my agenda was disrupted, the conversation achieved what the client needed at the time – a safe space to unload some emotional baggage.

As advisers, we have our education, certifications and experience. We think what we’re paid for is to have answers. Sure, that’s true, but that’s a baseline. All advisors are supposed to have the answers. The differentiator for you as an adviser is often the questions you’re willing to ask. Sometimes, those questions are uncomfortable or may seem out of context. Sometimes, they don’t fit your script. Yet, the right questions give us the insights we need to understand the problems our clients or prospects have, which are most urgent for them.

Effective questions deepen relationships. Deeper relationships in turn, create more value for you as the professional services adviser. Effective questions will often reveal a few problems, which we can’t solve. That’s what happened in my redirected client conversation. Just having the freedom to express frustrations openly, though, helped relieve some of the stress this individual was carrying around, which they felt they couldn’t share.

Knowledge and answers are our stock in trade is professional services advisers, yet often it’s the quality of the questions which are even more vital. I’m John Ray on the Price and Value Journey. If you’d like to know more, go to JohnRay.co or email me directly, John@JohnRay.co.

 

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 The Price and Value Journey
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 1,100 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: John Ray, Price and Value Journey, pricing, probing questions, professional services, professional services providers, value, value to client

Making Connections

February 2, 2022 by John Ray

Making Connections
North Fulton Studio
Making Connections
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Making Connections

Making Connections

Providing thoughtful introductions and making connections between others in your network is a compelling and memorable way to create value for others. Here’s the way, over time, I’ve learned to do it in a way that others appreciate while strengthening your relationships as well. 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] And hello again, I’m John Ray on The Price and Value Journey. Once I was at an event in which I ran into two people I thought would benefit from knowing each other. Each were in complementary businesses, and so they could possibly be strategic referral partners for each other. They were both great networkers, meaning they would look to help each other as they could. That’s what being a great networker is all about. Most important, I thought they would like each other personally and get to be friends.

John Ray: [00:00:34] As I was introducing them, I suddenly went blank on one of their names. Now, that’s an awkward moment. I’ve just told this person that I want to help them by introducing them to someone they ought to know. And my brain won’t let their name fall out onto my tongue. Fortunately, I was saved by this individual’s name tag, which seemed to call out and say to me, “Look. Look at me. Here, I’m going to help you.” I recovered and the introduction went smoothly. Even so, my brain and I weren’t on speaking terms the rest of the evening.

John Ray: [00:01:13] Now, I’ve mentioned in an earlier episode of this podcast that when you don’t know what else to do in building your business, just be helpful. And one of the ways to be helpful is to make connections, and that’s one aspect of my business I particularly relish. For me, it goes beyond the enjoyment, which comes from making a good connection.

John Ray: [00:01:35] It’s something more. It’s a calling for me. I believe that we are all better, particularly in the often lonely space of entrepreneurship and in a world that’s heavily divided into tribes when we have a greater number of genuinely human and supportive connections with each other.

John Ray: [00:01:56] Connecting people the wrong way, though, is bungling in the name like I almost did. Sending a blind three way e-mail, I think, is often the worst. We’ve all received them, right? You two should know each other and enjoy drive bys, which make you feel like your pocket has been picked clean or something. While someone may have been thinking about you and the other person in the connection, the connector here seems to be doing just enough to try to score brownie points with both parties, and that’s it.

John Ray: [00:02:32] It’s not that all unexpected three way emails are bad, I’ve sent plenty of them, and most have been well received by both parties. I’ve introduced both parties to each other with several sentences of detail on why each should meet the other. In those notes, I’ve explained why I thought they would be good long term connections, and both parties often respond with appreciation for the connection.

John Ray: [00:02:58] What I’ve missed by sending such an email, though, even if both parties value the note, is the deeper personal connection, which comes from talking to both personally. And that’s why now, before I make a three way email introduction, I always call both parties and speak with them first. I tell them about the other individual, their business, and why I think the introduction would be beneficial. I ask for permission to connect them. I’ll let each know that they’ll receive a note from me only after I’ve spoken to the other individual and received permission from them as well.

John Ray: [00:03:43] By placing a call like that, several benefits naturally occur. I’ve made a much more solid introduction because both individuals know I care enough in a world dominated by texting and social media to take the time to make a personal phone call. It gives me the chance to catch up with both individuals myself. I avoid the embarrassment of someone’s business or circumstances having changed such that this connection, which might previously have been a good one, really isn’t anymore.

John Ray: [00:04:20] Finally, I also get the chance to deepen my connection with both parties by hearing about what’s going on in their lives. And I’m able to ask what they need, and understand what I can do to be helpful to them. By making those calls, I’ve not only made a great three way introduction, but I’ve deepened my relationship with each of those individuals. And all three of us are the better.

John Ray: [00:04:53] I’m John Ray on The Price and Value Journey. If you’d like to connect with me directly, you can go to my website, johnray.co, you can email me at 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 The Price and Value Journey
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 1,100 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: introductions, John Ray, making connections, Price and Value Journey, pricing, professional services, professional services providers, value

Should I Price My Services Lower When I’m First Starting Out?

January 31, 2022 by John Ray

When Starting Out
North Fulton Studio
Should I Price My Services Lower When I'm First Starting Out?
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When Starting Out

Should I Price My Services Lower When I’m First Starting Out?

I recently received this question from a professional services provider who was just starting out in their practice, and barely had dry ink on their business cards. The premise behind their question was that they are new in business and want to attract clients to “get going.” Here’s a high-level version of a more specific answer I gave them. (In a word, the answer is no.) 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] And hello, I’m John Ray on The Price and Value Journey. I recently received a question that was along the lines of, Should I price my services lower when I’m starting out? I get this question a lot from new professional services providers, ones that have just started their practice.

John Ray: [00:00:18] It’s an understandable question, but it comes from a faulty assumption. The premise is that lower prices attract customers, and that’s an understandable misconception. It’s one I labored with when I started out. That conception, that idea is wrong.

John Ray: [00:00:38] A couple things here. One is that prices are marketing signals. In the absence of any other indicator, a price is a marketing signal. For example, if I were to offer you a Lexus for $2,000, what would you think? It’s too good to be true, right? That’s part of the problem with pricing in a way that is supposed to be promotional, sometimes it actually drives clients away.

John Ray: [00:01:04] Now, let’s call something else out though. Part of the problem with professional services providers starting out is both fear and confidence. We are afraid and insecure in thinking a buyer will look at us and question our inexperience in the business. The answer to the problem is focusing on the client, discussing and understanding their problems in depth. What is the scope of the issues that their problems are causing? What will the client be able to do, whether it’s greater sales, lower expenses, less aggravation, a better vacation because the problem gets solved? What’s the cost of doing nothing?

John Ray: [00:01:48] You see, questions like this are a value conversation. And a value conversation is a dialogue with a customer which helps ferret out what the solution to their problem is worth to them. When you have value conversations with clients, you’re shifting everything. The comparison is less about price relative to, well, in this case, you’re supposed lack of experience or your newness in business.

John Ray: [00:02:17] Instead, the comparison becomes more in the minds of that client about price relative to the value of the solution. Once you’ve had a thorough value conversation, you may find that you’re not a great fit for this client. That what they really need is something you can’t provide. If so, you’ve done both them and you a favor.

John Ray: [00:02:42] But if you think you can solve the client’s problems, craft options for working together. Offer a good, better, best set of options. The good option should be your very basic – we’ll call it – compact car offering priced at more than what your gut tells you it should be. The best option should be your luxury solution to the problem when you know you can deliver with a price you think is crazy high.

John Ray: [00:03:12] Now, if you offer options after having a deep dive value conversation, the discussion with that client becomes more about the ways and terms to work with you as opposed to your time in business, your experience, what have you. Now, there’s a lot of detail underneath this answer, but that’s the way I answered this particular question on how should I price when I first start out. Have a value conversation, offer options.

John Ray: [00:03:46] I’m John Ray on The Price and Value Journey. If you’d like to give me a question that I can answer here on this podcast, I’m happy to receive it. Just email me, 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 The Price and Value Journey
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 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 1,100 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: confidence, fear, John Ray, Price and Value Journey, pricing, professional services, starting a business, starting out, value, value conversation

Just Be Helpful

January 28, 2022 by John Ray

Just Be Helpful
North Fulton Studio
Just Be Helpful
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Just Be Helpful

Just Be Helpful

When you come out of corporate to start your own professional services practice, you think you’ll be chosen or referred because of your experience and your qualifications. If that’s your mindset, though, it doesn’t distinguish you or make you memorable. What does? Just be helpful, genuinely and authentically. 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] And hello, I’m John Ray on The Price and Value Journey. When you come out of corporate to start your own professional services practice – well, if you’re like me anyway – you drop in and you think, “What do I need to talk about that matters? Well, it’s the service I offer, right?” Well, that’s not really true. At least that’s what I found.

John Ray: [00:00:23] Nobody is waiting for you to show up to provide business advisory services, or legal services, or marketing services, or accounting and bookkeeping, whatever other business that you might be starting. There’s already plenty of folks out there doing that work. They’ve got their established referral partners and practices. So, how do you make a difference? How do you stand out? How do you make a name for yourself? How do you distinguish yourself in a crowded field?

John Ray: [00:00:56] Now, I think part of the answer, a big part of the answer, is just be helpful. Now, I don’t mean the kind of helpful where you’re offering what amounts to a lead page for some course or service that you offer. That’s not being helpful. That’s marketing a service. What I mean is being helpful without any intent to see something immediate from it, if at all.

John Ray: [00:01:26] When you go out and visit with people, just attempt to learn, to understand, to know about them. When you do a coffee or one-on-one, make it about them and learn what they do. You will distinguish yourself right off the bat. I promise you that this is true because I know.

John Ray: [00:01:46] Quite a few years ago when I came out of corporate to start my own practice, I had a pretty big network. But it wasn’t the kind of network that was oriented toward my local market that I needed to have to be able to support my business. So, I had to go build a different kind of network. And the way I did that was by learning about other people and helping them get to where they needed to be, connecting them with helpful strategic referral partners and, of course, a potential client.

John Ray: [00:02:20] When you do that, you’re showing a real concern for them and their welfare. And over the long term, if you do that and do that consistently, it will pay you back. You won’t know where those reciprocations or those vibrations from the universe – if I can say it that way – where they’re going to come from. But that’s part of the fun of it to me.

John Ray: [00:02:44] Recently, I had a lady who called me who I’ve known for many years, and she called to ask me about a family law attorney for her daughter, who unfortunately was probably headed to divorce court. “Now, John -” she said “- because you know everyone around here, you’re going to know the best fit for my daughter.” Now, we talked a little bit at a high level about her daughter and what this worried mom thinks that she needs. I steered her away, frankly, from a few attorneys I know who would be, probably, I’ll just say not good fits. But then, I gave her a couple of recommendations of others that I thought would work out well for her based on what she told me.

John Ray: [00:03:26] The point of it is that this lady views me as a trusted adviser to her. It has nothing to do with the service I offer. I mean, she obviously wasn’t calling up to ask me about my service and what I sell. But she needed help in a very sensitive situation, and she called me. Now, that’s just one illustration of how you get to be a trusted adviser. She knew that if she called me, I was going to be looking out for her best interest because that’s the experience that she had with me.

John Ray: [00:03:59] Now, in the future, she and her business, well, she may not need my service. But one thing that I can count on from her is that if she hears of anyone that even remotely might need what I offer, she would send them my way with a glowing review.

John Ray: [00:04:15] That’s the reputation you want to develop. That’s the brand you want to have as a professional services provider, whatever service you provide. I’m not saying it’s the quickest way to get there, but what I am saying is it’s the most sure and reliable way to reach the goals that you want to reach in your professional services practice. And I think it’s the most rewarding. Just be helpful.

John Ray: [00:04:41] I’m John Ray on The Price and Value Journey. If you’d like to connect with me, go to johnray.co. You can email me at john@johnray.co. And for past episodes of this podcast, go to pricevaluejourney.com or your favorite podcast app.

 
 

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 The Price and Value Journey
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 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 1,100 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: be helpful, John Ray, Price and Value Journey, professional services, professional services marketing, value

“What I’m Worth”

January 25, 2022 by John Ray

What I'm Worth
North Fulton Studio
"What I'm Worth"
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What I'm Worth“What I’m Worth”

“I should get paid what I’m worth.” For professional services providers, what we need or think we deserve is irrelevant. Here’s a story that illustrates the way we achieve better pricing, and it involves a value conversation. 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] And hello again. I’m John Ray on the Price and Value Journey. “What I’m worth. I should get paid what I’m worth.” I hear this sentiment and variations on it from professional services providers whom I speak to about their pricing. What I’m worth is dangerous language for a B2B services provider. You see, what I’m worth in isolation can easily get turned into what I need or what I deserve. At an extreme, what I’m worth can justify taking advantage of people.

John Ray: [00:00:40] What you need or think you deserve is irrelevant, certainly to the client, and that’s who pays your fee. What’s relevant is how clients valued the solutions you provide to their problems, their perception of that value. Better pricing for your services starts with solutions, solutions rooted in the value clients derive from the work you do. And that value, by the way, is not just rational. The value customers perceive always involves emotions.

John Ray: [00:01:17] Recently, I had a conversation with an entrepreneur whose business, while growing, has gnawing problems under the surface. Her problems have been causing her to lose focus and sleep. “What would it mean,” I ask her, “to have these problems resolved? All this is obviously weighing on you.” She looked up in a way into someplace where she could see what her business and her life might look like with solutions to the problems that she had outlined. A wave of relief swept across her face. “Wow. I’d be a lot less stressed. I wouldn’t feel bogged down anymore. I’d have the freedom to make this business a lot larger.” I’ll let that vision linger for a moment, and then I asked, “What’s that worth to you?” “Wow,” she said, “I can’t even imagine.” “Well, that wasn’t quite true.”

John Ray: [00:02:21] As our conversation continued, she started formulating tangible answers to that question. And that’s where my value is rooted, not in what I need or what I think I’m worth. What I’m worth has nothing to do with it.

John Ray: [00:02:39] I’m John Ray on the Price and Value Journey. If you’d like to know more, go to JohnRay.co, or if you’d like to send me a note, connect with me directly, email me John@JohnRay.co.

  

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 The Price and Value Journey
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 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 1,100 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: John Ray, Price and Value Journey, pricing, professional services, professional services providers, ray business advisors, solopreneurs, value conversation, value pricing, worth

Hourly Billing Gone Wrong

January 24, 2022 by John Ray

Hourly Billing Gone Wrong
North Fulton Studio
Hourly Billing Gone Wrong
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Hourly Billing Gone WrongHourly Billing Gone Wrong

Flaws in hourly billing don’t always cheat the client; they often cheat the professional sending out the bill. A story on hourly billing gone wrong from Simon Sinek’s book, The Infinite Game. 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] I’m John Ray on The Price and Value Journey. Here’s a story of hourly billing gone wrong from a book I strongly recommend, The Infinite Game by Simon Sinek.

John Ray: [00:00:12] Sinek writes, “I used to work for a large advertising agency. After my first year at the company, leadership decided to implement time sheets. Unlike a law firm where a lawyer may be billing their clients for the actual number of hours of work, this was a way for the company to keep track of – well, actually, no one really had any idea of the utility of the timesheets. It was just something we were told to do. I managed to get away with not filling out mine for months. If they were tracking how I spent my time, I saw no point in telling the company I worked 100 percent on the one client to which I was assigned.”

John Ray: [00:00:53] “Of course, I got into trouble for not turning in my timesheets. And so, from then on, at the end of every month, I sat down with all my timesheets and filled them out in one go, in at 9:30 a.m., out at 5:30 p.m. In reality, I often came in earlier and left later. But who cares? I recall taking my timesheets to my boss for his signature. He looked them over and commented sarcastically, ‘You’re certainly a very consistent worker, aren’t you?’ And then, he signed them.”

John Ray: [00:01:25] “I have to believe that the timesheets were implemented because something went wrong in accounting. Perhaps a client was over billed for work done and demanded that the agency prove that the senior people who were promised to spend time on their account actually were the ones who spent time on the account or something like that.”

John Ray: [00:01:48] Interesting story from Simon Sinek. The question is, was the problem really in the accounting department? No. Because the problem arose because of a billing method which invites inaccuracies, abuse, and worse. Note that Sinek says his timesheets were fiction because he under billed, not over billed. The flaws in hourly billing don’t always cheat the client. They often cheat the professional sending out the bill.

John Ray: [00:02:21] This is one reason I tell professional services providers that if they are billing by the hour, by definition, they are underpricing their services. You might ask, though, how does under billing with a time based billing method shortchange the client? The problem is simple. When the client gets that bill, they don’t necessarily know that all the hours aren’t billed. An invoice based on time invites questions like, Did this work really take that much time? Why does this person think they’re so special they get to charge this much per hour?

John Ray: [00:02:56] And then, even after being told hours have been shaved off the bill, the client says, “Hmm. Can I trust that the previous bills I paid were right? What about the future ones? Will they try to make it back on me?” All these questions are misdirected. None of them address the most central point, “Did I, as the client, receive more value than what I paid in fees?”

John Ray: [00:03:24] Sometimes clients may start questioning a services provider who’s actually providing great value because the bill focuses attention on inputs which have nothing to do with value received. Hourly billing is nuts because it cheats both the client and the service provider, often, simultaneously.

John Ray: [00:03:48] I’m John Ray on The Price and Value Journey. If you’d like to know more, go to johnray.co or send me an email, john@johnray.co.

 

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 The Price and Value Journey
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 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 1,100 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: B2B pricing, hourly billing, hourly pricing, John Ray, Price and Value Journey, pricing, pricing by time, professional services, professional services providers, ray business advisors

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