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Waffles, Pricing, and Client Context

April 18, 2022 by John Ray

Waffles, Pricing, and Client Context
North Fulton Studio
Waffles, Pricing, and Client Context
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Waffles, Pricing, and Client Context

Waffles, Pricing, and Client Context

A story about kids’ waffles, and how professional services providers miss the opportunity to price based on client context, while in doing so treat their best clients unfairly. 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 again. I’m John Ray on the Price and Value Journey.

John Ray: [00:00:04] My son is a Waffle House fan and he has been since he was old enough to know what was going on. Waffle House is a 24/7, mostly breakfast, quick-serve restaurant based in Atlanta and covers a lot of the Southeast. In fact, there are some exits in the Atlanta and Georgia area where there’s a Waffle House on both sides of a freeway exit.

John Ray: [00:00:30] When my son was in preschool, his standard order at Waffle House for a long time involved a waffle. Kids’ waffles at Waffle House when he was that age were a dollar. Today, kids’ waffles with bacon are now $4.25. So this long ago gone value was indeed quite a deal. Now, if you’ve been to Waffle House, you know that all the waffles come out of the same-sized griddle, which you can see. So, it’s no big secret. A kid’s waffle, therefore, was priced significantly below an adult waffle even though the product was the same. Same waffle mix, same size, same plate, $1. This was a great deal for that age and stage when as much of the waffle ended up on the table and floor is in your kid’s mouth.

John Ray: [00:01:25] At a certain point, though, things changed on our Waffle House trips. One day my son, who was about five or six years old, changed his order. On this trip, I ask him, “Do you want your waffle?” He said yes. So to the server, I said, “A kids’ waffle for him.” He said, “Dad, I want an adult waffle.” The server stood there, her pen poised over her order pad, wondering what Dad’s next move was going to be. “The kids’ waffle and the adult waffle are the same size,” I said. “But, Dad, I want the adult waffle.” “It’s the same waffle, John. It comes out of the same griddle my waffle does you see over there.” And I pointed to the waffle griddle, but he was having none of it. “Dad, I want an adult waffle.”

John Ray: [00:02:21] Our server stood there looking at me with this expression on her face, something like, “Okay, Dad, what now? Now that you’re reasoning with a five-year-old is a complete flop.” At this point in that uncomfortable moment, when my kid is about ready to cry and the server is waiting, my willingness to pay shifted dramatically. “Okay. Get him an adult waffle.” I was suddenly willing to pay an adult price for that same exact waffle. If my server had told me that adult waffle prices had suddenly doubled for cheapskate dads with crying kids, I would probably have been willing to pay that amount.

John Ray: [00:03:07] A client’s willingness to pay is subject to context as well as the geography they find themselves in. Customers expect to pay more for a soda at the ballpark, for example, or the movie theater, even though it’s the same exact cola they enjoy for a lot less at home. Now, it should work the same way in services too. But sometimes professional services providers missed the mark on this.

John Ray: [00:03:39] Here’s a great example, and I’ve seen this repeatedly for bookkeepers who might have a client that walks in the door with the proverbial box full of receipts and they need to get their books in order by a certain time. And that certain time, of course, is going to require heaven and earth to be moved to get that done. Yet what does that bookkeeper sometimes do? Charge them the same amount and it’s often an hourly rate. That’s a whole nother subject. The same amount that they would a regular client always on time getting that bookkeeper everything that they need to keep the books in order on a regular basis.

John Ray: [00:04:28] A rush to completion time for the same work should command a premium price for the added benefit of speed. But sometimes service providers, like bookkeepers, for example, often miss this opportunity to differentiate. And it’s really not fair, frankly, even if those clients don’t know that your regular clients are paying the same price as the clients who are a mess and want something done at the last minute. It’s just not fair.

John Ray: [00:05:01] So, how does context work for the clients in your business? If you’re not factoring in context for your customers, your price is undoubtedly wrong.

John Ray: [00:05:15] I’m John Ray on the Price and Value Journey. Past episodes of this series can be found at pricevaluejourney.com. Or if you’d like to connect with me directly, you can do so by sending me 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 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: bookkeepers, client context, John Ray, Price and Value Journey, pricing, professional services providers, solopreneurs, The Price and Value Journey, value

LinkedIn For Professional Services Providers: An Interview with Gregg Burkhalter, The “LinkedIn Guy”

April 14, 2022 by John Ray

LinkedIn
North Fulton Studio
LinkedIn For Professional Services Providers: An Interview with Gregg Burkhalter, The "LinkedIn Guy"
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Gregg Burkhalter The LinkedIn GuyLinkedIn for Professional Services Providers: An Interview with Gregg Burkhalter, The “LinkedIn Guy”

Gregg Burkhalter, dubbed “The LinkedIn Guy” by his clients, joined host John Ray to share his advice about effective relationship building and personal branding on LinkedIn. Gregg talked about successful LinkedIn strategies for time-starved professional services providers, creating and sharing content, the value of being genuinely helpful without an agenda, and much more. The Price and Value Journey is presented by John Ray and produced by the North Fulton studio of Business RadioX®.

Gregg Burkhalter, Personal Branding, LinkedIn Training, Speaker

Gregg Burkhalter
Gregg Burkhalter, Personal Branding, LinkedIn Training, Speaker

It is very important to have a strong personal brand. Companies understand that their employees’ brand contributes largely to the company’s success.

Everyone has a personal brand. Your brand is built one of two ways: 1) By default: do nothing and you have to settle for how it turns out, or 2) By design: if you consistently focus on developing and building your brand, you can help shape the outcome.

LinkedIn has over 770 million users and is the digital home of your personal brand. LinkedIn is also a great place to build relationships and grow your professional network.

When you set up your LinkedIn profile, you’re defining what you’d like your brand to be. It is not your personal brand until others believe it. 

Gregg Burkhalter is a recognized authority on personal branding and LinkedIn. He has helped countless professionals in the U.S. and around the world define and grow their personal brand using LinkedIn.

Gregg is known by many as “The LinkedIn Guy”. He provides Personal Branding Coaching and LinkedIn Training via one-on-one and group training sessions, corporate presentations, and webinars.

Website | LinkedIn

TRANSCRIPT

John Ray: [00:00:00] Hello again, friends. I’m John Ray on The Price and Value Journey. I’m delighted to welcome an old friend today, Gregg Burkhalter. Gregg is known as the LinkedIn Guy, and that’s actually a name his clients and friends have given him because Gregg, in their eyes and I think you’ll hear as we go along on this show, is a recognized authority on personal branding and LinkedIn.

John Ray: [00:00:25] He has helped countless professionals in the U.S. and around the world define and grow their personal brand using LinkedIn. Gregg spent the first part of his professional career behind the mic at radio stations in Savannah, Jacksonville, Charleston, and Atlanta. And following his radio years, Gregg worked in national music marketing and distribution.

John Ray: [00:00:48] And as I mentioned today, Gregg is known by many as the LinkedIn Guy. He provides personal branding, coaching, and LinkedIn training via one-on-one and group training sessions, corporate presentations, and webinars. And he does this for clients and groups all around the world. Gregg Burkhalter, welcome.

Gregg Burkhalter: [00:01:09] John Ray, thank you for having me on your podcast. It’s great to see you again. And I’ve got to tell you, I’m a fan of your podcast, as are a lot of people right now. And I’ve noticed the guests that respect your knowledge so much, they get on your podcast. I’m honored to be among those guests. Thank you.

John Ray: [00:01:26] Well, I’m delighted to have you. And this is a topic that when we started the show, I immediately marked down – and immediately marked you for it, of course – because LinkedIn is so important for small professional services providers, for solopreneurs that are mostly B2B services, so we want to talk to those folks.

John Ray: [00:01:52] But before we get into some of the details of that, I want to talk about you and a little bit more about your journey because you’ve got an advisory practice. So, talk about how you built that practice around the use of LinkedIn.

Gregg Burkhalter: [00:02:05] Correct. Well, my early career, as you alluded to, was in music and broadcasting. And like most professionals, you don’t usually work your entire career in the same job. You usually have some kind of pivot or transition.

Gregg Burkhalter: [00:02:17] Well, my pivot occurred a little over eight years ago when the company I worked for, my dream job, kind of disappeared. And I started my period of discovery to see what is the next chapter in the Gregg Burkhalter life. And, fortunately, that chapter unfolded without me actually searching heavily for it. I found myself, on occasion, doing some speaking on LinkedIn to some social groups or some community groups in the area. And what do you know? Within, like, a short period of time, I started having people ask me, “Would you come talk to my group about LinkedIn?”

Gregg Burkhalter: [00:02:48] Of course this would not have happened had I not had the courage – thanks to a friend – to set up my very first LinkedIn profile and began using it. And I began using it with a strategy that proved to be correct. So, now that I’ve started my consulting business, I’ve watched it grow, I’ve watched others get impact from the strategy and advice I share with them. And I’m on a run right now that I’m really enjoying this facet in my career. And I would love to see others be able to experience what a service provider journey looks like when you have a strategy and a focus on helping others being of value and providing a service that others want.

John Ray: [00:03:27] For you, it’s hard to separate LinkedIn versus your practice, because LinkedIn is your practice. I mean, for the rest of us, LinkedIn is just a tool for us in our practice. But just talk about, I guess, just the building of your practice and maybe what you’ve learned as a solopreneur, what you’ve learned along the way in terms of how you’ve done what you’ve done and how you’ve been successful.

Gregg Burkhalter: [00:04:02] Well, I can tell you, step number one is building relationships. Because you can’t do it on your own. And that is why LinkedIn is so valuable. LinkedIn is a great tool – as you said, tool – for building and nurturing those relationships. That’s the beginning process. Then, the next step is probably beginning to decide what is your message? What value do you bring to your service area? How do you want to present yourself? And then, once you kind of get that voice down, then you begin using LinkedIn to become part of the community.

Gregg Burkhalter: [00:04:36] Again, while you’re spreading your message, you’re not becoming a one trick pony where it’s all about you. Because LinkedIn, in all reality, is not about you. It’s about the value you bring to the community. And it’s about building and nurturing professional relationships that will create ongoing opportunities for you throughout your business and your career.

Gregg Burkhalter: [00:04:56] So, LinkedIn, for me, I can tell you personally is more than a tool. It allows you to feel more fulfilled as a person because it allows me in the most effective way possible to help other people and to accomplish what I’m trying to do.

John Ray: [00:05:10] So, before you were the LinkedIn Guy and you started that profile, you opened that profile, what you brought was a relationships first mentality to the platform. It seems like your philosophy of being in the world and doing business really meshed with what LinkedIn is. That’s not necessarily true for everyone that’s on the LinkedIn, though, of course.

Gregg Burkhalter: [00:05:36] That’s correct.

John Ray: [00:05:37] I mean, most – I won’t say most – a lot of folks that are on LinkedIn, it’s about either they’re on there to get a job, which there’s nothing dishonorable about that. A lot of us have been on there for that. Or they’re on their cell, whatever they’ve got, their service or whatever it is. But you really came to the platform with the relationships first mentality. And I guess it was just your way of looking at the world, your philosophy of the world, just happened to hit the right platform.

Gregg Burkhalter: [00:06:14] Well, I can tell you that it actually helped my business grow at a rapid fashion. Because if you’re getting on LinkedIn and you’re nothing but a sales pitch machine, you might get lucky every now and then and maybe land a client, but your chances for long term success is not very good. Because relationships, not only with your clients, but with the community, is going to help you continue to do your business.

Gregg Burkhalter: [00:06:38] So, there’s two ways you can really use LinkedIn, in fact, just like hunting and fishing. I started out as a fisherman. I started fishing. I started trying to fish for relationships that I could nurture and grow. And then, once I got that traction going, I put on my hunter’s hat, and I started hunting for people that might be potential clients. Not to send them a one off sales pitch, but to decide I may want to nurture that relationship for future opportunities. So, it’s really a mix of both. But I can tell you if you’re only game plan is hunting, that is not a successful long range game plan.

John Ray: [00:07:15] Okay. Well, let’s dive into this right now, because I’m sure people are thinking because I’m thinking this. You went after people that you wanted to develop a relationship with. What does that look like for you? You go out after someone that you think is a great target for you – I hate to use that word – a great relationship for you to have, how do you nurture the relationship without being salesy?

Gregg Burkhalter: [00:07:42] Well, first of all, let me tell you, a potential client is not your only target on the relationship you’re looking for.

John Ray: [00:07:48] Oh, come on.

Gregg Burkhalter: [00:07:49] When you look for a potential client, that’s one particular person that you have on your radar. The one that people miss all the time is finding that person who already has a well-established brand who has a network of people who enjoys introducing and connecting people. That’s the relationship that will replicate sale after sale, intro after intro for you. So, that’s the two you should be going for.

Gregg Burkhalter: [00:08:16] But as for your approach, please do not just push the connect button on LinkedIn and expect me to grovel all over you and the services you provide. You’re not talking to me. You’re treating me like I’m just a number. Well, the next step is, maybe you write me a note. That’s a perfect thing to do. Write me a note. Explain to me why you’re reaching out to connect. What is the commonality that led you to want to connect with me and connect with me.

Gregg Burkhalter: [00:08:41] But please don’t give me a copy paste sales pitch immediately after we connect. Or in the original invitation you’re sending me, don’t send me a link to your calendar to schedule a time to talk. You’ve got to give time for that relationship to grow. And that is not usually in the first one or two conversations on LinkedIn. There’s more to it than that.

Gregg Burkhalter: [00:09:05] You’ve got to bring some value, value that you’re not expecting anything in return for to start nurturing that relationship. And that value might even be introducing your client to someone you already know who provides a different service that might be a good source for them. This is adding value. There’s ways you add value and just soliciting them to buy your product is not the top way to add value.

John Ray: [00:09:32] So, beyond introducing connecting people, which I can hear folks thinking, “Well, I don’t really want to connect someone I just connected with on LinkedIn who I don’t know to my clients,” so how do I add value to that person I’ve just connected with sort of connecting them with my clients?

Gregg Burkhalter: [00:09:55] Well, first of all, you can start figuring out exactly what your client’s needs are, what they’re looking for, what kind of resources they might get to utilize. And maybe you could maybe send them a link to an article that they would like to read. Or maybe invite them to something going on in the business community that maybe they would like to attend, and you’re going to be there, you’d like to say hello to them.

Gregg Burkhalter: [00:10:17] Or like I said earlier, maybe connecting with someone that once you speak with them, you say, “You know what? There’s some commonality here between these two.” They need to know each other. Create a synergy connection with somebody in your network that would be of value to them.

John Ray: [00:10:30] So, not necessarily a client, just a referral partner or someone that you think they ought to know for synergy reasons or what have you. Let’s talk about comments and how you make helpful comments that create connection.

Gregg Burkhalter: [00:10:47] I got to tell you, John, commenting on posts right now is one of the most valuable ways, most efficient ways, to create brand exposure for yourself. It’s also a very volatile way, if done incorrectly, to create brand damage.

John Ray: [00:11:03] Say more on that.

Gregg Burkhalter: [00:11:05] So, for example, say you see an article on LinkedIn by somebody you know or someone who’s respected in your industry, and you want to add a comment to give yourself a little brand exposure. If you type in “Great article,” don’t even waste your time. That’s phoning it in. There’s nothing there. So, if you’re going to comment, at least read the article. Find something in the article that you want to read the accent on, maybe add a little different perspective to.

Gregg Burkhalter: [00:11:32] But for goodness sake, please don’t either try to hijack the comment to promote yourself, or make a comment that would devalue what the person who’s posting is saying. You don’t want to grandstand. This is about helping others create brand exposure. And when you do that, believe it or not, you create brand exposure for yourself.

Gregg Burkhalter: [00:11:53] And commenting right now is one of the fastest ways to do that on LinkedIn. In fact, I tell a lot of my clients, if you’re not comfortable posting just yet, let’s become part of the community. Let’s find some people that you respect the content they share, that you admire, you like their message. And let’s start interacting with those people. If you do that, you’re going to jump start your branding on LinkedIn.

John Ray: [00:12:15] Yeah. I was going to ask you about those folks. So, the stats are -and I think I got this from you somewhere along the way – that there’s 90, 95 percent, maybe more, of LinkedIn users that get on and never make a comment. They never make a post. They rarely make one. They may get on and surf the feed a little bit and then they get off. And maybe they do that because they don’t know what to post or whatever the reason is. But can you build a strategy on LinkedIn around simply offering genuinely helpful comments to others and celebrating their work.

Gregg Burkhalter: [00:13:01] By the way, the person you just described, John, I use the term digitally dormant. It’s kind of like having a home phone nowadays, that phone is not going to ring. You’ve got a phone, but it’s not ringing. That’s what happens when you have a LinkedIn account and you don’t use it, it’s a home phone. Doesn’t happen.

Gregg Burkhalter: [00:13:19] So, yes, absolutely. That’s what I like about LinkedIn, is that LinkedIn allows you to even comment on people’s posts outside of your normal network. And the way you do that, by the way, is you can follow people on LinkedIn that are thought leaders way high above your branding stature, but you can follow these people and interact with those people and become part of the conversation. I call it getting out of the LinkedIn pond into the LinkedIn ocean.

Gregg Burkhalter: [00:13:47] But, again, if you’re going to comment, please read the article. There’s nothing worse than commenting on something. And when the viewer reads your comment, they say that comment has nothing to do with the article. Again, if you’re going to take time to comment, let’s take time to make sure that it’s a valid comment.

John Ray: [00:14:04] Right. Right. Yeah. That’s the minimum viable comment right there. And I think the other one – this is a personal pet peeve of mine – is what you mentioned earlier about hijacking comments and comments that are superficially helpful, but what they really are, are referential back to the writer of the comment. And people can see through that and it does damage, I think, to people that do that that they don’t see.

Gregg Burkhalter: [00:14:40] You’re talking about the person that tags a comment that says, “When I work with my clients, I tell them this. And by the way, I have a workshop coming on Tuesday where I’m going to reinforce this.”

John Ray: [00:14:49] Yeah. That person. That’s who I’m talking about.

Gregg Burkhalter: [00:14:53] That person really doesn’t understand what they’re doing. They think they’re walking that line of being humble and they’re so far over that humble line. It’s unbelievable.

John Ray: [00:15:00] Yeah. So, if you’re the victim of a comment like that, what do you suggest you do about that?

Gregg Burkhalter: [00:15:09] You’ve got to decide, is this person going to continue to do that over and over again? Maybe this person doesn’t need to be in your network. I mean, if they’re not interested in helping you grow your brand and be successful while you do it, that’s not one of their concerns, then maybe they don’t need to be part of your community.

Gregg Burkhalter: [00:15:24] And there’s a few ways that you can kind of solve that issue. One of the fastest ways is maybe you remove the connection on LinkedIn. But the ultimate way to fix that problem is you can block people on LinkedIn. That’s what I love about the platform is I can control the noise around my brand. And some people do not respect my brand at the level that I think they should, and they treat it like it’s a stepping stone to what they want to do. Those people you can block.

Gregg Burkhalter: [00:15:50] And if you block people on LinkedIn, basically they disappear from your LinkedIn community, you disappear from their LinkedIn community. And that particular problem of negativity or hijacking, it’s gone. So, that’s the highest level of getting rid of it. And I got to tell you, during COVID, a lot of the salespeople got extremely aggressive on LinkedIn, and my block people list grew rapidly. So, you can actually block up to 1,400 people.

John Ray: [00:16:18] Oh, really?

Gregg Burkhalter: [00:16:19] And right now I’m probably in the 300 range because, again, I avoid negativity. I don’t like self-promoters who are disrespectful of other people. I don’t like people who post comments that actually are negative towards certain people. I get rid of negativity and noise if it gets to loud.

John Ray: [00:16:37] Folks were chatting with Gregg Burkhalter. Gregg is the LinkedIn Guy, and he is a recognized authority on personal branding and on LinkedIn, and growing your personal brand through LinkedIn.

John Ray: [00:16:52] Gregg, I want to talk to those folks – and there’s a lot more of those folks – the people that really don’t use LinkedIn than the ones that are using it. Those folks that are early in their business and they’re saying, “Look, I’m trying to build a business. You know, I don’t have time for the fishing approach. I don’t have time to put my line in the water and just wait for things to happen. I mean, I’ve got to make things happen.” Respond to that individual?

Gregg Burkhalter: [00:17:25] Well, first of all, you’ve got to take your LinkedIn profile seriously. Because here’s why. John – I was telling someone the other day – most contacts that come to your company via email or a phone call, that first contact is not the first time someone’s heard of you. Because everybody nowadays, including myself, the first moment they consider doing business with someone and want to validate someone, what do we do? We go to Google and we type in their name. And you can guess what shows up at number one or number two, that is your LinkedIn profile.

Gregg Burkhalter: [00:17:57] So, your LinkedIn profile in reality is one of the first interests people have of you. And on LinkedIn, as a general rule, nobody is going to get to your LinkedIn company page unless they see something done by one of your team on the personal page that attracts them to you. So, that’s why you at least have to have a page that represents you well.

Gregg Burkhalter: [00:18:19] And what I see happen a lot of times is, people kind of have the attitude of that guy, the infomercial guy, Ron Popeil, the guy that does the rotisserie chicken, the guy that says, “Just set it and forget it”. That’s what they do. I mean, they set up their LinkedIn profile and they move away. Their career evolves. Their business evolves. And their LinkedIn profile is still stuck seven years before.

Gregg Burkhalter: [00:18:42] And one of the things I’ve noticed is, a lot of the service providers generally start their own business a lot of times the latter part of their career. And what they do is they never fully address on their LinkedIn profile the pivot that’s just occurred.

Gregg Burkhalter: [00:18:57] For example, you may go to a new service provider company, maybe led by an executive that used to work at an I.T. firm. You go to the person’s profile, and their profile reads like somebody looking for a job. So, they wrote their profile originally in job search mode. And, now they’re in client search mode and they haven’t changed their voice.

Gregg Burkhalter: [00:19:19] So, your LinkedIn profile should be a client attracting profile with the words below your name, how you present yourself in the About section, how you describe the services you provide, and who you provide those services to. That should be there. Not just a work history. I mean, we want to know what value would you bring should I engage with you. That should be prevalent in your LinkedIn profile. That’s the minimum.

Gregg Burkhalter: [00:19:44] In other words, I don’t even want you being active on LinkedIn if your LinkedIn profile does not represent you well. Because your purpose for being active on LinkedIn is to become part of the community, but it’s also to attract people to your page on LinkedIn. And if you get them there and there’s a derail, then you haven’t served your purpose. So, get your profile buttoned up first, then we can look at becoming more active.

John Ray: [00:20:08] So, what I hear you saying is that, it’s not about simply just give, give, give without any hope of getting anything back. It’s giving and being generous, maybe to a fault sometimes in the eyes of some. But that generosity comes back in ways you would never forecast, from places that you would never forecast.

Gregg Burkhalter: [00:20:37] That is correct. I mean, in the early part of your career, development for your company or growing your company, the giving is even more important. Because you’ve got to start helping other people in giving, and giving people an opportunity to realize there’s a value in what you do. And networking is part of that giving, sharing posts and content on topics that would be of interest to people that they may want to read.

Gregg Burkhalter: [00:21:02] By the way, please don’t post on LinkedIn about how you’re providing quality content, and then you give me the link to your web page and the post. I mean, every post you do should not have lead generation in the focus. It’s okay to have one that has a subtle lead generation, but it can’t be every one of them. It’s all about the percentage of what you do that is helping the community as opposed to what you’re doing and tried to help yourself.

Gregg Burkhalter: [00:21:30] And I would say the general mix is, if you’re just starting to use LinkedIn as a tool to grow your brand in business, I would say 75 percent of what you’re doing on LinkedIn has no direct input on generating a direct sales lead for you. You’ve got to make sure you give, give, give, and then you can take a little bit. Just give, give, give first.

John Ray: [00:21:52] Right. So, let’s talk about folks that hire other people to post for them on LinkedIn. Talk about the opportunities and the pitfalls.

Gregg Burkhalter: [00:22:06] Okay. There’s a couple of ways you can have people post for you. One is you can use a service like, say, Hootsuite, or Buffer, or one of these auto-publish services on LinkedIn. That happens all the time. I actually recommend that or actually say it’s okay to use those services for your company page. That doesn’t really bother me.

John Ray: [00:22:25] Your company page or your personal page?

Gregg Burkhalter: [00:22:26] You can use some for your personal page. But here’s my fear, if you automate your posting, you may think that you’ve done all you need to do on LinkedIn and you don’t become part of the community. So, posting is not the way initially to grow. It’s about being part of the community. Posting is an aspect. It’s not the most important thing.

Gregg Burkhalter: [00:22:47] Now, the thing you don’t want to do is hire someone to pretend to be you. In other words, it’s against LinkedIn rules to hire someone to log into your LinkedIn account and pretend to be you. That is against LinkedIn rules. It’s also against LinkedIn rules to use some sort of outside software like a bot or something like that to automate processes inside of LinkedIn that are normally done manually. For example, inviting people to connect, looking at LinkedIn profiles. These kind of things go against LinkedIn terms and service.

Gregg Burkhalter: [00:23:24] But the real problem is this, though, rules aside, you got to put some skin in the game. You can’t fake relationships. People see through it. We’re in the digital age. Social media has been around long enough. LinkedIn has been around long enough. We’ve seen it all. We can pretty well sense when something is genuine or when something is being phoned in.

Gregg Burkhalter: [00:23:46] So, to really be successful in growing your brand, growing your network, and using LinkedIn for long term success, you’ve got to have some skin in the game and that’s investing time yourself in the platform.

John Ray: [00:23:59] You know, you and I spoke about this offline when we were getting ready to do the show, and I’m going to bring it up here. I may post on it at some point. But I had a person who reached out to me, it was obviously automated. And I realized that now after talking to you. Folks, I’m going to read it. It said, “Hi, John. Excellent work at Ray.” That really turned me on right there. “I am really impressed by your experience in the medical industry.” Thank you. “Recently helped another chiropractor, like you, increase their monthly sales by 40 percent using Google ads. Do you have time this week for a quick call?”

Gregg Burkhalter: [00:24:54] There’s no chance that was generated by a bot or a computer, correct? That was not copy-paste. That was a handwritten, well-thought out –

John Ray: [00:24:59] That was so personalized, right?

Gregg Burkhalter: [00:25:02] You can tell.

John Ray: [00:25:04] And the problem is that – I’m not going to mention who this person is – I bring it up because folks need to know what these automations are capable of and what it makes their brand look like if they hire people to do this kind of stuff and those people don’t know what they’re doing.

Gregg Burkhalter: [00:25:24] Correct. In fact, if you have somebody who is actually helping you, maybe post content on your company page or on occasion maybe they’re auto publishing something to your personal profile, don’t accept what they’re doing. You need to go in and review what’s going on. You cannot turn your brand over to someone and just assume everything is going well. You’ve got to monitor. You’ve got to be part of the process.

Gregg Burkhalter: [00:25:48] And like I said, having that human aspect, that personal touch, even if you are using some auto-publish tools on occasion, just that human touch of that comment, or that like, or that interaction you can do publicly on LinkedIn, that’s what creates that emotional connection. It’s not the marketing material. It’s that emotional interaction with other people that creates that connection.

John Ray: [00:26:11] So, Gregg, we’ve talked about the negative, let’s talk about the positive. Let’s talk about, first of all, the right way to use LinkedIn. What I’ve noticed about you over the years, which you do extraordinarily great work in curating great content on LinkedIn, that’s not all you post, but that’s a lot of what you post. Talk about the right way to use it, why that works for you, why that may not work for others.

Gregg Burkhalter: [00:26:42] Okay. People ask me all the time, “Gregg, what is the proper way of using LinkedIn?” There is no specific proper way. The proper way depends on you. I know in my particular business there are certain things I’m looking for. I want to have time to build and nurture relationships. I want to have time to be part of the community and help other people. I don’t have a whole lot of time to sit and write a lot of content, because my time is focused on relationships and what I want to accomplish. That is one of the reasons why a lot of my focus when I’m finding stuff to post on LinkedIn is curated content.

Gregg Burkhalter: [00:27:18] But I got to tell you, John, even though it’s curated content, you’d be amazed how many people reach out to me to tell me how much they enjoy the stuff I share. So, even curated content, if it’s the proper quality stuff, it’s stuff that can add value to your community and to your brand. So, that could be that too. But the proper way on LinkedIn, it’s all on what you’re trying to do. There’s no proper way. The key thing is have a strategy, ease into it, don’t get too loud too fast.

Gregg Burkhalter: [00:27:46] This happens all the time. When I’ll speak to a group of people, they’ll get so jazzed up, they will leave there and they go from being not on LinkedIn to loud on LinkedIn. I mean, you got to ease into it. So, once you decide to be present on LinkedIn, start building up your exposure slowly. Don’t get too loud too fast.

Gregg Burkhalter: [00:28:06] John, you’re a great writer. I mean, you have the ability to take out a piece of paper and really lay down some thoughts in a real fluid manner, in a timely manner. That’s why I believe you writing content is so important to your brand. That’s part of the John Brand.

John Ray: [00:28:22] Thank you.

Gregg Burkhalter: [00:28:22] And likewise, there’s some people who make great video presentations. They can use video in there. But because video works for one person doesn’t mean the person who doesn’t make a good on screen appearance should have videos their number one tool. It all depends on the person.

John Ray: [00:28:37] Right. Right. And do you advise people on that?

Gregg Burkhalter: [00:28:42] Yeah. I would say, first of all, if –

John Ray: [00:28:44] I mean, in your work. When you work with someone, do you advise them on what to do?

Gregg Burkhalter: [00:28:48] Yeah. I kind of get a feel for what their strengths are. On your LinkedIn profile, as you probably are aware, you can actually put video on your LinkedIn profile. It’s up by your photo area. It’s called a Profile Video. But if you don’t make a good on screen appearance, I recommend my clients don’t do that. If it doesn’t represent you well or you don’t feel confident, don’t do that.

Gregg Burkhalter: [00:29:08] But there’s other things you can do. Like you can put your voice on your profile that’s a little bit less intense, that may add a little emotional side to your profile, you can do that. If you do use video, I’m going to recommend that unless video is the item you’re selling, I’m going to recommend you use it sparingly. Because just because a video is a powerful tool doesn’t mean every time I see you, I see a video of you.

Gregg Burkhalter: [00:29:34] Because in my opinion, video is the most high profile “Look at me. I have something to say” presentation way you can present on LinkedIn. So, if you come from nowhere, not being active, to all of a sudden you’re the video person, that’s a really high profile “Look at me” from not being anywhere. So, I think video is the kind of thing you use sparingly, but use it as part of your mix. It shouldn’t be everything you do.

John Ray: [00:30:00] And the other problem with video, and audio, too, for that matter, is, you can’t scan it and see is this something I want to spend time with? I mean, that’s part of the other problem. And so, you know, I’ve found for myself, when I post audio versus when I post something that’s written or an article that I’ve curated, those are two different responses.

Gregg Burkhalter: [00:30:27] That’s why audio podcast are so big now because you can take them with you.

John Ray: [00:30:31] No. Well, that’s true. But you can’t preview them. You really can’t preview them and scan them just like you would scan a post real quick to see, “Hey, I want to stay with this and dig into it.”

Gregg Burkhalter: [00:30:46] I think when you post a video and instead of just posting a video, it would help to have a proper introduction, maybe spotlighting some of the things that you talk about in the video. And, hey, here’s an idea, how about a time cue? Maybe do a little cue, “At 00:01:10, I talk about this”. I mean, there’s ways you can kind of help the viewer decide if they want to engage and to go right to what they need, if they want to. That’s an idea, maybe, when you post a video.

John Ray: [00:31:10] Yeah. No, that makes sense. I’m curious – you don’t have to mention names – just the circumstances behind folks that you have seen build not just their brand, because I think people think brand and they think that’s some ethereal attention getting thing that doesn’t have anything to do with their building their business, and they’re looking to build their bottom line.

John Ray: [00:31:44] I’m talking about folks that maybe they built their brand, not on purpose, but what they’ve done at the same time is they’ve really built their business out of LinkedIn and how they’ve been able to do that. And, again, I’m speaking right to those folks that may not even listen to this podcast, frankly, but those ones that are not on LinkedIn, not spending time on LinkedIn, but are missing out on the potential of it for building their business. I want to encourage those folks.

Gregg Burkhalter: [00:32:17] LinkedIn is the center of the B2B universe. There’s so many business conversations occurring on there daily. There’s endless opportunities of discovering new people to, maybe have as a potential client in the future, maybe to help along their journey. Just so many things you could do.

Gregg Burkhalter: [00:32:37] And what you have to realize about LinkedIn for small or medium sized entrepreneur companies, your personal brand is the driving force for your company brand. If you don’t have a solid personal brand and you’re leading a company in a certain industry, a service provider company, then the chance of that company being successful are greatly reduced. Because, again, until you build up traction and recognition for your company, you are the brand.

Gregg Burkhalter: [00:33:09] Like, people all the time hear me speak, but they never ask me, “Gregg, what is the name of your company?” Because they’re not buying my company. They’re buying the Gregg Burkhalter knowledge base. So, my company, I do have a company name, but I don’t drive my business based on what my company knows, it’s driven based on what Gregg Burkhalter knows and what folks around me in my community say about what I do.

Gregg Burkhalter: [00:33:35] So, yeah, if you’re not on LinkedIn, again, I go back to the home phone, it’s not going to ring. I mean, you’re not building digital proof. And more importantly, you’re not digitizing your business relationships. Yes, relationships have always been very important.

Gregg Burkhalter: [00:33:53] But if you haven’t digitize those relationships where you can groom those and nurture those in the digital realm, you are slowly losing those relationships. And LinkedIn is the public platform where you can do just that. And you can do it with ease. And you can do it while providing value to the community.

Gregg Burkhalter: [00:34:14] In fact, here’s another thing I’ll tell you about LinkedIn. If you get on LinkedIn and you clearly define your brand and you start getting traction, it’s a tremendous confidence builder. It also can actually make you happier, because LinkedIn, if you build your brand and start growing your business with a branding strategy, it builds clarity on what you do.

Gregg Burkhalter: [00:34:37] LinkedIn is going to force you when you’re writing your profile. You’re going to be forced to figure out what you’re about. And what you sorted out, kind of put it on your LinkedIn profile, and start that journey of sharing content and interacting with content around this particular topic, it builds confidence and clarity that you don’t have unless you make that journey.

Gregg Burkhalter: [00:34:59] If you’re not on LinkedIn, you’re marketing. We’re beyond marketing messages. It’s about communication, conversation. It’s about emotional connection to your company through your employees and your message through your employees. It’s not about what somebody is sending you marketing material-wise, that doesn’t convert. It’s the connection that converts.

John Ray: [00:35:24] And see, again, I think this is where some people are on LinkedIn, they think LinkedIn is marketing. If I’m on LinkedIn, that’s my marketing. And so, they’ve got that mentality as opposed to what we’ve been talking about, probably ad nauseum for folks, is being there to be part of a community.

Gregg Burkhalter: [00:35:45] Yes. They’re marketing self-promoting. Is that what it is? I mean, if what they’re doing on LinkedIn is self-promoting, then that’s self-promoting marketing. But if they’re on LinkedIn to build those relationships, bring value to the community, use LinkedIn for the purpose it was created, which, by the way, LinkedIn was created basically to help you connect and strengthen your professional relationships, learn skills that will help you be better at what you do. I mean, this is actually in LinkedIn’s terms of service. What is LinkedIn? In the first sentence or two, it talks about relationships. I mean, that’s what LinkedIn says it does.

John Ray: [00:36:22] You know, you sent this to me, and I want to read this or part of it. I’m not going to read all of it. But it says, “LinkedIn is the world’s largest professional network on the internet. You can use LinkedIn to find the right job or internship, connect and strengthen professional relationships.” There you go. “And learn the skills you need to succeed in your career.” I guess, LinkedIn learning is what they’re referring to there. But there it is, connect and strengthen professional relationships. So, that’s the way the platform is built. They put it right there right upfront.

Gregg Burkhalter: [00:37:02] Correct. But you’ve got to realize that LinkedIn as a business, okay? Microsoft bought LinkedIn. LinkedIn is a business. It’s doing well. So, LinkedIn has kind of expanded a little bit on that original description of LinkedIn. And, now, are offering some sales tools for companies to kind of help them in their sales process.

Gregg Burkhalter: [00:37:23] But what you’ve got to realize, sales tools or no sales tools, the center of what LinkedIn is about, building relationships is the center of LinkedIn. So, selling as a first strategy without the consideration of others and building relationships is marketing, and that’s old school. The new school is conversation, value, connection, validation, digital proof. Those are all parts of the new thing. It’s not just what you say, it’s what I can see about what you say, and what do others say, and what can I validate online about you. That’s where the conversions occur.

John Ray: [00:38:05] Now, speaking of LinkedIn being a business, should I have the paid version of LinkedIn.

Gregg Burkhalter: [00:38:16] LinkedIn has its value at the paid version. But let me just kind of tell you the different version of LinkedIn briefly. I’m on the free version. I’ve been on the free version since day one. Could I use the paid version and maybe get some extra benefits? Yeah, I probably could. So, why don’t I have it? Well, I just want to prove to people that buying something doesn’t necessarily make it work.

Gregg Burkhalter: [00:38:38] So, if you’re looking to build relationships on LinkedIn, share content for the community, grow your network, that kind of stuff, and you’re not really doing a lot of hunting, the free version of LinkedIn will be fine for you. But if you’re part of a sales team and you’re actually trying to identify potential customers, then getting the paid version of LinkedIn will have some extra value for you.

Gregg Burkhalter: [00:39:00] In fact, something most people don’t know is this, if you’re on LinkedIn and you either have the free version of LinkedIn or you have LinkedIn Career or LinkedIn Business, if you have one of those three versions, when you search for something on LinkedIn, the results you’re seeing are only your first, second, and third level connections.

Gregg Burkhalter: [00:39:21] So, if you’re a person with 300 connections and you do a search for a particular topic and I do a search for the same topic, my search results are vastly more extensive than yours. Likewise, if somebody in LinkedIn does a search for the service you provide and you have a very small network, you may not show up in their first, second, or third level result.

Gregg Burkhalter: [00:39:43] So, that’s why growing your network and to continuing growing your network is so important to creating brand exposure for you. But I bring this up to tell you that there’s only one way that you can search LinkedIn and actually search all 800 members of LinkedIn community. And that is with a paid version of LinkedIn called LinkedIn Sales Navigator. It is strictly focused on sales lead generation.

Gregg Burkhalter: [00:40:09] But what you need to know is, any activity you do inside of Sales Navigator, all the conversations you have inside of Sales Navigator, any of those conversations you have, if you ever change your mind and decide you don’t want to use Sales Navigator anymore, you will lose all those conversations.

Gregg Burkhalter: [00:40:25] So, that’s why I recommend that if you are going to use Sales Navigator, let’s start building those relationships, creating those conversations inside of the regular version of LinkedIn, and then maybe use the Sales Navigator to identify potential people you want to talk to. But let’s have the bulk of your conversations be inside of regular LinkedIn, so you have a documentation like a CRM of that whole relationship.

John Ray: [00:40:49] You know, one thing that I think some people have a real problem with is, they’re victims of the sector that they’re in, the business line that they’re in. Let me give you an example. If I help coaches build their business and I go out on LinkedIn and I want to build relationships and I go to connect with someone, then – I know it’s true for me. I’ve talked to you about it. I think true for you as well – when you have people that you connect with you and you read that profile, the cynicism measure goes way up real fast when you see someone that says I help coaches build their business through this. Because you’re expecting to get pitched when you connect with that person.

John Ray: [00:41:48] So, let’s give advice to those folks. How do they go build their network on LinkedIn – a financial advisor is another good example, an insurance salesman professional is a great example too – people are expecting to get pitched when they connect with that person. So, how do you build your network? And even though you’re in an area where others have given it a bad name.

Gregg Burkhalter: [00:42:18] Got you. Well, first of all, any time anybody sees you on LinkedIn, whether you invite them to connect or whatever, they see three things about you, your face, your name, and the words below your name. So, if the words below your name say something like, “I could sell ice to an Eskimo, the number one salesperson in America,” you may not want to connect with that person because they’re all about selling.

Gregg Burkhalter: [00:42:43] But if their headline or the words below their name say, “Improve operational efficiency, save 30 percent per year,” that might have interest. But to be sold to, we’ve all witnessed that so much in the last couple of years, we don’t like that.

Gregg Burkhalter: [00:43:00] And you were talking about the stigma, sometimes certain industries have certain stigmas. I read an article a few months ago and it really hit home with me about when somebody first hears about you or has a conversation with you, their mind goes through three brand filtering processes.

Gregg Burkhalter: [00:43:22] First of all, if they know nothing about you, they don’t know anything about your company or they know nothing about you, your brand and their opinion of you is based entirely on the industry you work in and the contacts they’ve had with people in that industry. So, if they don’t know the company you work for and your insurance, they don’t know who you are, you are an insurance agent, and in their mind, you’re the same person as every insurance agent they’ve ever met.

John Ray: [00:43:49] The next filter is, do they know your company? And do they respect what your company does? If they do, then you’ve gotten above that industry filter to now they sort of respect what you do because of your company. They know your company is good. But the ultimate filter is if they know about you, what you do, the skill with which you do it, that trumps all the other stuff. That is the ultimate tool for building trust with people and getting your brand and your message across in the manner you want.

John Ray: [00:44:26] Gregg Burkholder, folks. Gregg is the LinkedIn Guy. I think you know that by now if you didn’t already. And he is quite the authority on building your personal brand through LinkedIn. Greg, I’ve got to ask you, because we’re The Price and Value Journey, we talk a lot about pricing on this podcast, talk about the effect that being proficient on LinkedIn, building your brand on LinkedIn, your authority on LinkedIn, has with your pricing.

Gregg Burkhalter: [00:45:05] It’s amazing. I mean, if you want to attract the best customers who recognize your value, and respect your value, and are willing to pay you what it’s worth, if not even more than what you think it’s worth, a personal brand and a strong digital presence can do that for you.

Gregg Burkhalter: [00:45:25] Because the way business happens nowadays is people are going to validate you digitally. They’re going to look online for digital proof about you. They’re going to search your name and look for proof. And if they can find stuff online, either in your voice or from client voices or your activity in the community just shows that you’re a respected authority at what you do, if they can find that, if your brand has that kind of credibility, and they call you or email you for the first time, they are well on their way to doing business with you. That’s the value of having a strong brand, digital proof, and a community around you supporting and validating that you are the person you say you are.

Gregg Burkhalter: [00:46:06] It opens doors faster. It closes doors on sales faster. And it creates ongoing opportunities on LinkedIn because even though mentally you’re focused on the client at hand or maybe the client or two that maybe you have on your radar, but if you’re using LinkedIn properly, you are attracting numerous other clients out there that at this point you don’t know it’s happening.

Gregg Burkhalter: [00:46:30] So, just don’t ever assume that something’s not happening. Because if you’re using LinkedIn strategically, consistently, and with the proper attitude, you are always attracting people. I don’t know how far up the pipeline they are, but they are out there listening to your message.

John Ray: [00:46:49] And that in turn impacts your pricing and your ability to price.

Gregg Burkhalter: [00:46:53] Again, if they perceive your value and they recognize you as a thought leader or an authority on your subject, price does not usually even come up in the conversation. Initially, it’s are you available and how do I engage with you, that’s generally the conversation.

John Ray: [00:47:08] Oh, that’s music to everyone’s ears, for sure. Well, Gregg, as we close, this has been awesome, and I want to get to your contact information for folks that want to be in touch in just a second. But talk about the future of LinkedIn. I mean, what does that look like for you as you look through the crystal ball? And there’s lots of changes that keep happening in LinkedIn, what does the future look like for people that are active on the platform or want to be active on the platform?

Gregg Burkhalter: [00:47:37] Well, if you’re not active on the platform right now, you’re rapidly, rapidly getting behind the eight ball here. So, you’ve got to be on the platform. Linkedin is not going anywhere. It’s only going to get bigger. With the support of Microsoft and the vast database that LinkedIn has built up of business entail about your companies, employees, and stuff, there’s just so much information, and information is value. So, LinkedIn is only going to continue you to grow.

Gregg Burkhalter: [00:48:04] Yes, you’re going to see more people getting on LinkedIn. And, yes, you’re going to see people getting on LinkedIn that don’t understand how you’re supposed to look at LinkedIn. And they’re going to end up burning their brand and they’re going to leave after a while. I call those people LinkedIn opportunist. LinkedIn is not an opportunist platform. It’s more about long term.

Gregg Burkhalter: [00:48:24] So, if you get on LinkedIn and you say, “I think I’m going to try it for about 90 days,” don’t even try it. It’s not like that. It’s just a continual, consistent, everyday thing you do that you never let up on. And the good thing about it is if you use that strategy of being consistent, and authentic, and on their everyday, after about six months or so of doing that, nobody’s going to have to push you to do it.

Gregg Burkhalter: [00:48:47] You’re going to start seeing things happening that would not have happened had you not been on LinkedIn. And you’re going to start getting that confidence and that zeal for what the value of LinkedIn has. And by a year end, they’d have to force you to not get on LinkedIn because you know there’s so much good stuff there.

Gregg Burkhalter: [00:49:03] So, yeah, LinkedIn is going to continue to grow, continue to build. It’s going to involve. You’ve probably noticed all the changes. There’s more multimedia. There’s new features happening all the time.

Gregg Burkhalter: [00:49:12] In fact, thank you, LinkedIn, for always rolling out features and never telling anybody. It helps keep me in business. Because LinkedIn, I will log on one morning and everything is different and I start the discovery process. But that’s what I do. I kind of help people around me through the LinkedIn learning curve. So, yeah, LinkedIn is a place to be. Get on it or you’re going to get left behind.

John Ray: [00:49:33] And you do an awfully great job with that. I’ve relied on you for years in my journey on LinkedIn. And I would encourage folks to be in touch, if you’re interested, in the services Gregg has to offer in this regard. Or maybe you’ve got groups that could benefit from hearing what he has to say on LinkedIn and building your brand on LinkedIn. So, Gregg, let’s get to that important question, how folks can be in touch with you.

Gregg Burkhalter: [00:50:02] I would love for anyone listening to this podcast, if they would like to, to invite me to connect on LinkedIn, go to my profile, drop me a note, tell me you heard this podcast. I would love to have you to my network. You can also find out more information about what I do and kind of my talking points and my strategy by looking at the bottom of my LinkedIn profile under the Publications area, you’ll see several interviews and podcasts there.

Gregg Burkhalter: [00:50:26] And for more information, you can visit my website, which, of course, is my name, greggburkhalter.com. So, I would welcome the opportunity to connect with you, maybe have a conversation with you, and help you with what you’re trying to do on LinkedIn. Again, it’s a community. We’re all in this together. I’ll be glad to be of assistance any way I can.

John Ray: [00:50:44] Gregg Burkhalter, the LinkedIn Guy. Gregg, always a lot of fun. Thank you for coming on.

Gregg Burkhalter: [00:50:49] John, again, congratulations on your success of The Price and Value Journey. Great to be with you. Hope to see you again soon.

John Ray: [00:50:54] Oh, yeah. Absolutely. On LinkedIn. Folks, just a quick reminder that past episodes of this series, The Price and Value Journey, can be found at pricevaluejourney.com. And if you’d like to connect with me directly, you can email me, john@johnray,co. Thank you for joining us.

 

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 that 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: build a personal brand, gregg burkhalter, John Ray, LinkedIn, personal brand, personal branding, pricing, professional services, professional services providers, solopreneurs, the linkedin guy, The Price and Value Journey, value

Value in a Worthless Lottery Ticket

April 11, 2022 by John Ray

Value in a Worthless Lottery Ticket
North Fulton Studio
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Value in a Worthless Lottery Ticket

Value in a Worthless Lottery Ticket

Is there value in a worthless lottery ticket? Yes, and it’s a perfect illustration of how our prospective clients (and all of us, actually) make buying decisions based on intangibles which have nothing to do with our services, experience, or credentials. 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 again. I’m John Ray on the Price and Value Journey.

John Ray: [00:00:03] The largest single lottery pool in United States history was a Powerball jackpot of 1.6 billion in January 2016. Three winners in California, Tennessee, and Florida each had the option of receiving a $533 million pre-tax annuity or a lump sum payment of 327.8 million. Now, the odds of picking the correct six numbers in such a lottery are one in 300 million. Now, expressed another way, the chances of success in this game are essentially 0.00000033. Yes, essentially zero.

John Ray: [00:00:54] Now, any logical analysis of this purchase would deem these lottery tickets to be essentially worthless. So why would anyone spend $2 to buy what is basically a worthless piece of paper? Moreover, why would they stand in long lines like thousands did in the days that led up to that drawing to buy a ticket, which essentially has no monetary value? What drives the purchases of these tickets? Well, hopes and dreams, for one. The dream might be to pay off the mortgage or student loans or both. Maybe they want to buy a house for mom or something more extravagant, like a vacation home in Spain or Costa Rica. Maybe it’s an around-the-world cruise.

John Ray: [00:01:44] Whatever the motivation, visualizing the realization of that dream is something lottery ticket buyers receive. It’s intangible. Buyers are also motivated by identification. Everyone else is buying, so maybe you ought to give it a shot. Another motivation is the fear of missing out. It’s the I can’t win if I don’t play thinking.

John Ray: [00:02:09] Now, where I live here in the state of Georgia, lottery proceeds fund scholarships to in-state colleges. Some buyers, while accepting the extremely long odds, justify their purchase as a contribution to education. What’s the common thread in all these motivations? They are all intangible. Clients buy for intangible reasons which have nothing to do with the features and benefits of the product or service or what you might think might be logical about those products or services. This is true for all customers and everything they buy. This is true for you. This is true for me. Everything. Everyone.

John Ray: [00:02:58] And if you’re a professional services provider, you might think it’s different for you and you’d be wrong. Your clients aren’t any different. They’re motivated by their own mix of intangibles, many of which have nothing to do with your features and benefits. They will buy from you based on reasons you might think are crazy, meaningless, silly, or irrational. They will also turn down your pitch or even fire you based on reasoning you think is illogical. They will buy worthless pieces of paper for two bucks and find value there when they do. The extent to which you understand and internalize and act upon this fundamental aspect of human behavior will drive your ability to effectively market your services, price your services, and serve your clients.

John Ray: [00:03:51] I’m John Ray on the Price and Value Journey. Past episodes of this series can be found at pricevaluejourney.com. Or you can email me directly, 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: buying decisions, intangibles, John Ray, lottery, Price and Value Journey, pricing, professional services providers, solopreneurs, The Price and Value Journey, value

Our Intelligence is a Vulnerability

April 4, 2022 by John Ray

Our Intelligence is a Vulnerability
North Fulton Studio
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Our Intelligence is a Vulnerability

Our Intelligence is a Vulnerability

In our professional services practices, our intelligence is a vulnerability, but not because we don’t know what we’re doing. On the contrary, the sharper our intelligence, the more captive we can be to our biases. Further, and contrary to what we might like to think, our intelligence is not the primary reason we usually win business. 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 again. I’m John Ray on The Price and Value Journey. I recently finished a book called We Need to Talk: How to Have Conversations That Matter by Celeste Headlee. It’s a book I highly recommend, by the way, for a number of reasons, a couple of which I’ll talk about here.

John Ray: [00:00:19] There’s some obvious human reasons why we all need to improve our ability to communicate with each other. But there are some business reasons as well, Headlee notes. And she references research by Nobel Prize winning psychologist Daniel Kahneman, and he’s the author of Thinking, Fast and Slow, another book I highly, highly recommend, by the way. She points out that in Kahneman’s research, he finds that most people would rather do business with someone that they like and trust than someone they dislike.

John Ray: [00:00:51] I realized that may seem like a no-brainer to you and to all of us, but get this, customers will choose a likeable person over a less likable person, even if the likable person’s product is lower quality and higher priced. Professional services providers, what this means is that our degrees and certifications don’t mean as much as we’d like to think. It’s not that they’re not important, it’s just that our expertise at a certain point is assumed. Further, our ability to price our services effectively is more closely tied to our likability than our expertise.

John Ray: [00:01:32] Let me say that again, our ability to price our services effectively is more closely tied to our likeability than our expertise. We’re given a lot of latitude and dollars by our prospects and clients if we are likable. A major piece of likability, too, is tied up, not in how well we express ourselves, but how well we listen.

John Ray: [00:01:59] Headlee goes on to point out a red light warning in all of this. The smarter you are, the more you’ll assume that you know your biases, and therefore are effective at self-assessment. In fact, Headlee observes the exact opposite is true. Research indicates that the belief that your intelligence protects you from erroneous assumptions may actually make you more vulnerable to them. Our intelligence actually works against us as we evaluate our likeability, objectivity, or our ability to listen.

John Ray: [00:02:40] So, here’s the question then, what do we do to put a check on our erroneous biases and assumptions about ourselves? Now, for me, it’s having a few individuals who I can trust to tell me not what I want to hear, but what I need to hear.

John Ray: [00:02:59] So, what works effectively for you or what do you need to introduce in your practice? It could be hiring a coach. It could be engaging a mentor. It could be having an unofficial board of directors. Whatever it is, though, you need to have some friendly yet frank objectivity coming from a trusted third party that will help you overcome the limits and the biases that are inherent in your intelligence.

John Ray: [00:03:29] I’m John Ray on The Price and Value Journey. Past episodes of this series can be found at pricevaluejourney.com. And if you’d like to connect with me, you can send me 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 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: biases, intelligence, John Ray, likeability, Price and Value Journey, pricing, professional services, professional services providers, The Price and Value Journey, value

The Post-It Note You Need on the Bathroom Mirror

March 30, 2022 by John Ray

Post-It Note You Need for Bathroom Mirror
North Fulton Studio
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Post-It Note You Need for Bathroom Mirror

The Post-It Note You Need on the Bathroom Mirror

Some folks use a Post-It note in a prominent place, like the bathroom mirror or on their computer monitor, to remind them of their goals and to provide motivation. Here’s a suggestion for what that note should contain to help you to attain those goals. The suggestion may surprise you. 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. The Post-it Note you need on the bathroom mirror.

John Ray: [00:00:10] Some folks use the Post-it Note in a prominent place like the bathroom mirror or on their computer monitor to remind them of their goals and to provide motivation to reach those goals. The idea is that if you visualize it, it will happen. For some, visualization might work wonders. For the rest of us, it sets us up for failure and despair. And my golf game is just one example.

John Ray: [00:00:40] Now here we are as I record this episode, we’re approaching the end of the first quarter, 2022, and that Post-it Note with the goals for this year, for some of us, might feel like more of a screaming inditement than encouragement. Maybe we’re even working off a new note, one with more modest aspirations, and we’re feeling guilty because we lowered our sights.

John Ray: [00:01:07] Instead of goals based on sales or number of clients, try this reminder note and see how it fits for you. Stuff I need to quit doing. What should be on this list are the items that you as the owner of your business have no business doing yourself yet you persist. It’s low-level client work. It’s bookkeeping or marketing details. It’s work that’s necessary for the health of your business but it doesn’t mean that you need to be the one to do it even if you’re a solopreneur.

John Ray: [00:01:46] Now, just to be clear, low level doesn’t mean low value. On the contrary, the outcome of a low-level task can often be very high value. By low level, I mean repeatable tasks, which you can teach someone else to do such that you can focus on those items which most need your own attention. Now whatever is on your list of stuff that you need to quit doing, it’s those things that take you away from high-level client work, which is the real value add or the business development work that you never seem to have time for.

John Ray: [00:02:29] Now, I just didn’t come up with this idea myself. W Edwards Deming, who was born in 1900, writing on management and leadership, observed that 85% of the reasons for failure are deficiencies in the systems and process rather than the employee. The role of management, he said, is to change the process rather than badgering individuals to do better. Now, Deming’s management philosophy of total quality management, by the way, was arguably the single biggest idea, which drove Japan’s recovery after World War II.

John Ray: [00:03:15] Now, if we apply Deming’s idea to our own businesses, we might infer that about 85% of the reason we don’t hit our goals for top-line growth arises from a failure of our systems or processes. So if you’re off track on the goals you set for yourself for this year, follow Deming’s idea. Quit badgering yourself to do better first. Tear up that Post-it Note you started the year with and make up a new one. Focus on removing the sand in the gears of your business, the minutia you have no business doing. As you get those details off your plate, you’ll be amazed at the value you’re giving yourself and your business.

John Ray: [00:04:04] I’m John Ray on the Price and Value Journey. Previous episodes of this series can be found at pricevaluejourney.com. And to connect with me directly, you’re welcome to 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 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: business processes, goals, John Ray, Price and Value Journey, pricing, process, professional services, professional services providers, solopreneurs, Systems, Systems and processes for entrepreneurs, The Price and Value Journey, value

Prices are Marketing Signals: The Woodworker Edition

March 28, 2022 by John Ray

Prices are Marketing Signals The Woodworker Edition
North Fulton Studio
Prices are Marketing Signals: The Woodworker Edition
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Prices are Marketing Signals The Woodworker Edition

Prices are Marketing Signals: The Woodworker Edition

Prices are marketing signals. Prices send messages of quality, and sometimes prices send a signal you didn’t intend:  that your service is inferior in some way. A master woodworker’s story illustrates the point. 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. A few years ago, I gave a presentation to a group of business owners on pricing and specifically how pricing is the most important driver of revenue and profit growth in a business.

John Ray: [00:00:15] To understand pricing, it’s important to understand the value equation customers sort through as they evaluate a purchase. Regardless of whether they consciously realize it or not, clients weigh a comparison in their head. Does the value received from this product or service exceed the cost of the purchase? Now, that value could be tangible or intangible. Most often it’s a combination of both.

John Ray: [00:00:43] After my presentation, I received a comment from Hans Meyer. He’s a friend of mine who, at the time, was in the office products business. But on the side, Hans is a phenomenally talented wood craftsman. In fact, he does that work fulltime now that he’s retired. He makes a variety of wood decorative items, toys, puzzles, teaches other craftsmen, and exhibits at weekend trade shows.

John Ray: [00:01:12] Hans shared with me that he started making wood fret crosses. Now, wooden fret crosses can be extremely ornate and intricate. They’re beautiful works of art. Hans had made several large ones, which he had priced at $40 to 50 each. Despite their beauty, the crosses were just not selling. And in turn, this led to another problem, these crosses had been to eight or ten different craft shows and had not sold.

John Ray: [00:01:43] Well, finally, out of frustration at one show where, again, the crosses were not selling and not wanting to have to lug them back home yet again, Hans decided to mark them down and get rid of them. With pen in hand, he started changing prices. What are you doing? A voice called urgently from the next booth. It was a lady who was exhibiting her crafts next to Hans and she was curious.

John Ray: [00:02:10] Hans told her the saga of his crosses and how he wanted to mark them down to get rid of them. “No,” she replied emphatically, “do not do that. Absolutely not.” Hans was exasperated, he said, and he handed her the pen, “Okay then, you price them.” Well, she took the pen and she made new tags for the crosses, pricing them from $125 to 150 each. During that same show, Hans sold three crosses at the new higher prices to three different customers.

John Ray: [00:02:48] Hans now routinely sells these ornate crosses from $175 to 225 each. That’s about four times more than before his fellow exhibitor took that pen and in just a few short moments completely transformed the profitability of these products.

John Ray: [00:03:08] As business owners, we need to understand that our price is sometimes interpreted as a signal by customers. A signal of quality or a lack thereof. A readiness to discount or markdown may be interpreted by the client as an admission that the product or service really doesn’t have that much value after all. In such cases, discounts may not actually drive a sale. On the contrary, the signals sent by a discounted or low price may drive the client away and into the arms of another provider whose higher price signals better quality.

John Ray: [00:03:47] In the case of Hans and his decorative fret crosses, a higher price reinforced in the minds of buying clients what they came to the craft show to purchase, an intricately carved handmade item, handmade by a master craftsman. Hans’ original much lower price may have been interpreted by potential buyers as a signal these items were not of much quality and craftsmanship.

John Ray: [00:04:16] If you enjoy a craft beer or wine and you’re not really a connoisseur, think about how you order in a restaurant confronted by a list of beers and wines. Some of which you’ve never had before. Some of which you’ve never heard of. What’s your first impression of the $8 glass of craft beer you’ve never heard of compared to that $2 Budweiser draft? The former has to be good if it’s $8, right?

John Ray: [00:04:45] Now, you don’t have to imbibe to be subject to this phenomena. What about that delivered pizza from the national chain which you purchased with a discount you accidentally found online and which comes in a box with more coupons taped on top? How does your perception of the quality of that pizza compare in your mind to the more expensive version you get in a sit down Italian restaurant, which, not only doesn’t deliver, but doesn’t discount?

John Ray: [00:05:15] This dynamic is not just true in extremely subjective products like arts and crafts or food and drink. What’s your immediate perception of the experience, intellectual depth, advice, and service quality of the attorney advertising on a billboard for a $199 divorce versus an attorney who asks for a $10,000 retainer to begin the divorce process? Absent any other information, which attorney would you think offers the best quality service?

John Ray: [00:05:53] Understand that your price is a signal to potential buyers. Price your service with care. Those prices may be interpreted in ways you never considered and can reveal much more about your service than you can imagine.

John Ray: [00:06:10] I’m John Ray on the Price and Value Journey. Other episodes in this series can be found at pricevaluejourney.com or on your favorite podcast app.

John Ray: [00:06:21] I want to give a shoutout to Hans Meyer. If you’d like to see more of his work, go to hanspuzzles.com, that’s H-A-N-S-puzzles.com Hans is an outstanding woodworker who makes not only puzzles and fret crosses, but all manner of unique handcrafted wood products.

John Ray: [00:06:46] If you’d like to connect with me directly, you can send me an email, 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: John Ray, marketing, marketing signals, Price and Value Journey, prices, pricing, professional services, professional services providers, solopreneurs, The Price and Value Journey, value

Experts Don’t Chase

March 25, 2022 by John Ray

Experts Don't Chase
North Fulton Studio
Experts Don't Chase
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Experts Don't Chase

Experts Don’t Chase

Experts don’t chase for a lot of reasons. One reason is that they’re too busy. The unsolicited pitches of a business and life coach prompts thoughts on expertise, chasing prospects, and the unintended signals some professional services providers send. 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. Dogs chase, experts don’t.

John Ray: [00:00:10] Sometime ago, a business and life coach connected with me on LinkedIn. Almost immediately, the automated private messages followed in a steady beat. My usual response to all this is simply to ignore. But the bots kept delivering the appeals, though, and they were progressively more urgent.

John Ray: [00:00:32] One note promises that her suggestions can help my business get back on solid ground. Never mind that she’s made no attempt to engage me in any personal way to find out exactly what I do, what’s going on with my business, what my needs are, and even what my favorite flavor of ice cream might be. Nothing.

John Ray: [00:00:55] In all these bots – yes, bots. Automated robot messages – she doesn’t offer me any insights that might help me in my business. Not even a pointer to the book she’s got for sale, an e-book, or even a blog post. Not even a pithy quote. Nothing.

John Ray: [00:01:16] Finally, in the last message I received, I got this, “I get it. You’re busy. But that doesn’t mean I’m giving up on you.” Good grief. That’s awesome. It’s great to know that I’ve got someone out there, someone who doesn’t know me from Adam’s house cat who’s not giving up on me.

John Ray: [00:01:38] Now, maybe you think I’m cranky for my critique, and maybe you think I have something against LinkedIn Sales Navigator or other similarly generation tools. But the tools and the technology aren’t the issue. The problem is how they are employed. These tools can be a godsend for professional services providers legitimately trying to expand their network. When used to chase people, though, with what amounts to spam, these tools devalue the brand you’re trying to build.

John Ray: [00:02:13] I’m thinking about this situation from the point of view of the coach, not me and the hundreds of other people she’s spamming on LinkedIn. Frankly, I feel a little bit sorry for her. She may be the best business and life coach one could ever hire, but that’s not the vibe she’s giving me. The signal she’s sending is that she has to chase people to get business. And that dents my perception of her abilities as a business coach.

John Ray: [00:02:41] If she’s so great, why does she need to chase me or anyone else with automated bots on LinkedIn? She’s not offering me even a glimpse into how she, out of the thousands of business coaches I could find on LinkedIn, might be able to help me with the particular problems that I have. She’s offering me no glimpses of her expertise, even though she clearly has some. Yes, I went to her website and poked around. All she’s doing is chasing.

John Ray: [00:03:10] That’s what dogs do, chase. Experts don’t chase. They’re too busy to chase. And let’s suppose she’s actually fortunate enough to shake out a few leads from this hunting she’s doing. If any of these leads turn into prospects, will this coach be able to command prices which reflect the value she delivers to clients? The chances are slim, I think, because she’s sending signals that she needs the business arguably worse than I or any of our other targets need her coaching. She’s fostering the perception, whether intended or not, that she badly needs the business.

John Ray: [00:03:54] And if you’re a coach who wants to receive prices commensurate with the value you offer, it’s a bottom line killer.

John Ray: [00:04:02] I’m John Ray on The Price and Value Journey. The show archive for 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 send an email to 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: Experts, John Ray, Price and Value Journey, pricing, professional services, professional services providers, prospects, solopreneurs, The Price and Value Journey, value

How to Successfully Increase Your Prices: An Interview with Mark Peacock, PriceMaker Ltd.

March 23, 2022 by John Ray

How to Successfully Increase Your Prices
North Fulton Studio
How to Successfully Increase Your Prices: An Interview with Mark Peacock, PriceMaker Ltd.
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How to Successfully Increase Your Prices

How to Successfully Increase Your Prices: An Interview with Mark Peacock, PriceMaker Ltd.

Pricing expert Mark Peacock joined host John Ray to discuss how to successfully increase prices in your professional services practice. Mark covered the primary reason services providers don’t raise their prices (fear), the role of options in better pricing, the two-stage communication process he advocates for a successful price increase, mistakes to avoid, and much more.

The Price and Value Journey is presented by John Ray and produced by the North Fulton studio of Business RadioX®.

PriceMaker Limited

Pricing is one of the most powerful levers any business can use to increase profits and drive revenue growth. Yet all too often businesses are too scared to review their pricing and typically many business owners are leaving a lot of money on the table as a result.

PriceMaker is a leading UK pricing consultancy that has helped its clients increase net profits by an average of 20%. They use a simple 7 step process for designing a better pricing strategy that focuses on what customers value, and helps businesses implement new pricing without the fear of upsetting customers. PriceMaker helps with any of the following pricing services:

  • Pricing New Products or Services
  • Review of Existing Pricing Strategies
  • Digital Pricing Strategy
  • Implementing Price Increases
  • Customer Pricing Research
  • Competitor Pricing Assessment
  • Tender Response Pricing
  • Training for Management & Sales Teams

Company website

Mark Peacock, Managing Director, PriceMaker Ltd.

Mark Peacock, Managing Director, PriceMaker Ltd.

Mark Peacock is a leading UK pricing expert focusing on growth businesses in the Tech, Services, B2B and Product development sectors. He is the founder and M.D of PriceMaker Ltd, a specialist pricing consultancy and has helped his clients create new pricing solutions that add significant bottom-line value (+20% average increase in net profits). Mark spent 25 years working in the corporate world for brands such as DHL and The AA and was business unit director for two business units with £25M revenue and +100 staff where he grew profits by +250% over 5 years. His broad expertise covers pricing, product management, sales, marketing, commercial strategy and P&L management and he is a full member of the Chartered Institute of Marketing, the European Mentoring & Coaching Council, and the Institute of Directors.

LinkedIn | Twitter

TRANSCRIPT

John Ray: [00:00:00] And hello again, everyone. I’m John Ray on The Price and Value Journey. And I’m delighted today to welcome Mark Peacock. Mark is a leading pricing expert based in the UK, focusing on growth businesses in tech services, B2B, and product development sectors.

John Ray: [00:00:21] He’s the Founder and Managing Director of PriceMaker Limited, a specialist pricing consultancy who has helped his clients create new pricing solutions that add significant bottom line value, on average 20 percent increase in net profits. Do I have your attention, folks?

John Ray: [00:00:41] Mark spent about 25 years in the corporate world for brands such as DHL. He has been in charge of business units with over 25 million in revenue, that’s pounds, not dollars. So, folks, that’s more than what you think given the conversion. And over 100 of staff headcount where he grew profits by 250 percent over five years. His expertise, not only includes pricing, but product management, sales, marketing, commercial strategy, and PNL management. Mark Peacock, welcome to the show.

Mark Peacock: [00:01:21] Well, thank you, John. It’s a real pleasure to be here. And thanks for that lovely introduction. I’m looking forward to our chat.

John Ray: [00:01:27] Yeah. It’s an honor to have you here. And we’ve got you here to address the question of how to successfully increase prices. But before we get to that, just real quick, you’ve got all this experience in corporate that goes well beyond pricing. And I’m just curious, when you left corporate to start your own practice, why did you focus on pricing?

Mark Peacock: [00:01:54] Yeah. That’s a great question, John. And when I originally left, I wasn’t absolutely sure what I was going to do. As you say, I have all of this experience in product management, marketing, running sales teams, and running a business. And then, I have my eureka moment and I thought, “Pricing. Nobody talks about pricing, particularly in the small and medium sized business world.”

Mark Peacock: [00:02:18] You know, you’ve got the likes of McKinsey’s and the big consultancies helping large corporates with pricing, but nobody really talks about it in the SME world. And I just felt that there was a place and a gap for somebody to come in and talk about how pricing can make a big difference to your business, and show people that it doesn’t actually have to be scary or difficult. And, actually, that there are lots of simple tactics that anybody can use that can make a big difference. So, I saw that as my mission, if you like. So, that’s why I’m on the show today, I guess, to help spread the word about the power of pricing.

John Ray: [00:02:58] Absolutely. And I think as we covered in the introduction, your focus is on several different sectors. Ours here on this show is on professional services firms, which you also have a wide experience with. Talk about from your perspective how bad the problem of inadequate or poor pricing is for professional services firms.

Mark Peacock: [00:03:26] Yeah. I think it starts with the point that people running these businesses are generally brilliant at what they do, whether they’re a marketing consultant, a lawyer, an accountant, an advisor, a consultant, whatever it is. They’re brilliant at what they do. But more often than not, particularly when it comes to pricing, they are a bit scared about it and they just default to the same method of pricing that everybody else in their industry uses. So, hourly rates, and daily rates, and project fees and things like that.

Mark Peacock: [00:04:04] And they don’t really put the thought that they need to into what’s the best pricing strategy for me. And the extent of that thought process is really, What’s my hourly rate going to be? Is it $50? Is it $500? Or is it $50? You know, where do I sit on that scale? And there’s a lot of hand wringing and worry and consideration. And then, we eventually settle on a number, whatever it is, and then we stick with it. So, we’ve gone through that hard question of what’s my hourly rate? And we don’t want to go through it again. So, we don’t move on any further.

Mark Peacock: [00:04:49] And in terms of how prevalent, it is what I think it’s right. You know, show me a business in the sector that’s got an amazing pricing strategy. And I’ll be quite surprised, people might be doing quite well with their pricing, which is great. But then, the question is, well, how much better could it be? So, yeah, there’s a lot. That’s why I’m passionate about what I do, because I think there’s a lot of people in this space that need help with their pricing.

John Ray: [00:05:19] How does someone that’s not an expert like you are, who has their own practice, how do they know they need to raise their prices?

Mark Peacock: [00:05:34] For me, the biggest indicator is the answer to the question, When did you last put your prices up? If the answer to that is more than a year ago, then you’re going backwards in terms of where you should really be. Now, we’re all aware of the threat of inflation, rising costs, rising prices. I’m sure it’s just as bad in the U.S. as it is in the UK at the moment for all sorts of reasons.

Mark Peacock: [00:06:07] So, if you don’t really think about it, people are unaware of the damaging effect of inflation over time. So, if I give a very quick made up example basing it on UK figures, $100 from ten years ago is not worth $100 today. It’s probably worth only about $70 in equivalent buying power. So, if you haven’t put your prices up in ten years, you’ve lost up to $30 in value, in buying power, that you would have had ten years ago.

Mark Peacock: [00:06:45] And the longer it goes on, the worse it gets, because you might think that inflation is only two or three percent – I’m not sure what it is in the U.S. at the moment – but that erodes the power of your dollar every single year. So, if you don’t do anything about it, you might think that the way to overcome that is to grow your business, is to sell more. You can do that, but your net margin is still deteriorating.

Mark Peacock: [00:07:11] So, I think the first question I always ask people is, When did you last put your prices up? Normally, always more than a year. People often say, “Well, probably three years ago we last put our rates up.” And often you’ll hear people saying, “Well, we haven’t put our prices up in ten years.” And that’s a big red flag for me. So, if that’s the case, then you really need to think about doing something about it.

John Ray: [00:07:40] Yeah. And I’m going to come back to what you said about if it’s been less than a year, because I’m sure there’s some folks that are probably shrieking at horror thinking about raising their prices every year. But I want to come back to that. But I want to talk about the reasoning behind why price increases don’t occur. And I assume fear is the biggest reason. But do you agree with that? And if so, why? And if you see something else, please comment on that.

Mark Peacock: [00:08:13] Yeah. Totally. I totally agree that fear is the underlying reason why people do not put their prices up. They might think it’s something else. They might think it’s due to market situation, increased number of competitors, my business is growing so I don’t need to. But the underlying reason is fear.

Mark Peacock: [00:08:38] And that’s because when it comes to thinking about that awkward conversation that you’ve got to have with your customers, people are scared. We’re scared because we don’t want to upset our customers. And if we do put our prices up, we don’t know how our competitors might react. So, all of that is going to affect our ability to achieve our revenue targets. And we might also lose out on new sales in the future that we would have got at our old prices.

Mark Peacock: [00:09:10] So, the conclusion, the thought process is, it’s far too risky. I don’t want to rock the boat. You know what? I’m just not going to bother and I’m going to focus on other things to grow my business, if that’s important to me. So, better marketing campaign, new products, recruit more salespeople, invest in new systems, whatever it is. There’s a whole load of things people will do to grow their business before they look at pricing.

Mark Peacock: [00:09:40] The pricing is the most powerful lever, as you know, John. So, it’s a shame that the fear gets in the way. Ignorance, I think lack of awareness of how to do it is another big factor, because that doesn’t get taught in business school, does it? You don’t do a module on how to increase your prices. You might remember what you learn about supply and demand and microeconomics, but that’s of no use at all in this situation. So, yeah, fear and lack of awareness, I think, are big factors in stopping people putting their prices up.

John Ray: [00:10:15] And unlike those that are in manufacturing, let’s say, that produce a product, what’s being sold for a professional services provider is what’s between their ears. So, it’s highly personal, right? I mean, it’s like you’re putting a price on your forehead, if you will, for people to say no to. And I think as much as people don’t want to admit that’s what’s happening, that’s really the way they feel down deep, right?

Mark Peacock: [00:10:45] Totally. And I think that’s also what holds people back from reviewing their pricing, because they take it very personally. And if somebody says no to the price increase, that’s a personal rejection. What I try and teach my clients is to separate the person from the product. So, think of it, this is the service I provide, it’s a product, and it has a price. And the best strategy, of course, is to provide options on our product range at different price points.

Mark Peacock: [00:11:17] So, it changes the conversation from the seller from “Will you buy from me, yes or no? And my rate is $100 an hour” to “Well, here’s the range of options that I provide, which one of these best meets your needs or the price you’re willing to pay?” So, it depersonalizes that link between the amount they’re paying you and your own self-worth and self-value. So, you need to get into that mindset of separating the two things and thinking about your pricing more carefully will enable you to do that.

John Ray: [00:11:53] Yeah. I just love that. I mean, because it really turns the conversation into yes or no. It’s a binary kind of thing into let’s talk about what your options are and you make the decision. And I, as the service provider, in a way, I don’t care what selection they make. Because I’m giving them options and they’re picking the one that fits best for them.

Mark Peacock: [00:12:21] Exactly that. And the best way to achieve that is rather than selling an hourly rate – so, let’s say I’m a website designer and I design websites for a living, and my hourly rate is $500 a day. And I estimate the job is going to take ten days, so $5,000 in total. So, rather than me pitching to the client and say, “Well, look, I charge $500 a day and it’s ten days, do you want me to do it, yes or no? And it might take more than that” – far better to just turn that into a project fee.

Mark Peacock: [00:12:51] And say, “Well, look, I’ve estimated the requirements. These are your objectives. This is what I can do. This is how it will look. And the overall project costs to meet your requirements is £5,000. By the way, if you want an enhanced version of what I can do, here’s another option with a load of extra services and features, and that’s £7,500.”

Mark Peacock: [00:13:14] So, you’re immediately moving away from “I charge $500 an hour” to “Well, here are two options. Which one of these best meets your needs at the price you’re willing to pay?” And of course, we’re using a few psychological pricing tricks in there, John, by high price anchor, which I’m sure you’re aware of. And that’s highly useful in terms of positioning the quality of what you do and allowing people to reference that to make a choice.

John Ray: [00:13:42] Yeah. I want to get back to options here in a second, but before we leave, I guess, the psychology of the service provider, let’s talk about ignorance. And as you said so well, the folks we’re talking about, those that are listening to this conversation, are brilliant people in what they do. But could that ignorance be what we’re talking about is the lack of understanding of a client’s perception of value and that’s where that ignorance is based. Is that what you see?

Mark Peacock: [00:14:21] I think it’s both facts and the lack of awareness of other ways to price what you do. I mean, if you work in a marketing agency, you’ve been trained to estimate hours and you’ve got a ladder of hourly rates, depending on your seniority. And that’s just the way it is. It’s the same in legal firms, accountancy, it’s just the same approach. And nobody takes the time or effort to think, “Well, is there a different way to price out what we do?” And we just get so used to pricing using that methodology.

Mark Peacock: [00:14:59] But you’re absolutely right, in terms of understanding customer value, that’s another area that people really struggle with. And the best way to think about this is, let’s say, I’m that website designer again and I’m charging $500 an hour. And if I’m [inaudible] a very small business, [inaudible], but they really love my help. Well, their ability to pay is very low, but they might perceive high value. Whereas, at the other end of the scale, you might have a much larger business as a client who thinks, “Oh, yeah. £500 a day, that’s a bargain. Let’s crack on.”

Mark Peacock: [00:15:41] So, if that’s the case, if that’s what happens in your market, why on earth would anybody try and sell the same price to both types of customer? It makes no sense if you think about it like that. Because people do perceive value in very different ways, and we need to adapt and adjust our pricing response accordingly. That doesn’t mean just saying, “Well, I’m going to charge you $300. And I’m going to charge you $500.” It needs to be more intelligent than that.

Mark Peacock: [00:16:15] But, yeah, understanding customer value is where really it all starts. And I think that is hard for people in this space. But there are ways and means to go about doing that.

John Ray: [00:16:27] Yeah. And we may get to some of that, but we want to get focused on how to increase prices because a lot of folks are struggling with that, knowing they maybe need to. And I think we talked about competitors and how folks are really focused in on what their competitors are up to. And the competitors are afraid, too, so how can I increase my prices, Mark, if my competitors aren’t?

Mark Peacock: [00:17:00] Yeah. That’s a really good question. I think the problem starts with the assessment that we’re all charging roughly the same price in terms of an hourly rate, whatever the number is. So, if I’m charging $500 and my nearest competitor, let’s say, they’re exactly the same price, how on earth can I get away with putting that up to $550 or $600? That feels difficult. Why would I want to do that? That makes no sense businesswise, because I’m going to lose business to those guys down the road and I’m not going to win any new contracts.

Mark Peacock: [00:17:40] Well, this is the problem with selling on an hourly rate or a daily rate, because you’re allowing the buyer to make it very easy to compare your rate with somebody else’s rate. So, the first step is turning it into options, or packages, or bundles. And that immediately sidesteps the easy comparison for a buyer to say, “Well, they’re £500 an hour and you’re telling me you’re £600 an hour and you turn it into a bundle?” Well, it’s $5,000, it’s $10,000 or whatever the number is, that’s far better, I think.

Mark Peacock: [00:18:18] In terms of how we go about this, the best advice I can give is, if you can understand your customers in terms of [inaudible] you need to do that. But in terms of the competitors, my advice is people get too worried about what competitors might or might not do.

Mark Peacock: [00:18:44] And whilst it’s important to know where you sit versus your competition, and particularly in terms of your price positioning, then get hung up on it. And if you feel your product or service has a high value, you have a good reputation, you have a strong brand, and you have lots of referrals and recommendations, then focus on that, first and foremost. And work out a plan to improve your pricing, not necessarily increase, but improve your pricing across your mix and let the competitors worry about it for themselves.

Mark Peacock: [00:19:24] I think all too often people, they anchor their pricing to the competitors. But why would you let somebody else determine the most important value lever that you’ve got that you can control, which is your price. And then, if you’re not sure, try and work out ways to improve your value proposition. Do I need to invest more in my branding, in my marketing? Do I need better systems to offer a better service? Do I need more people to support what I do? And all of that enhances and justifies the product that you’re selling unique to the needs and the market that you serve, rather than worrying about the customers.

Mark Peacock: [00:20:06] So, I guess my best advice there, John, is just forget them for a second and just crack on and sort yourself out. And then, worry about them further down the line. What do you think to that?

John Ray: [00:20:18] I couldn’t agree more. And, to me, that you’re focused on the wrong crowd. But you said it, instead of worrying about your competitors, focus on your customers. Go ask them why they’re doing business with you and you’ll be amazed at what you’ll find out, right? You will find out reasons that you’re delivering value that you didn’t even think of, right?

Mark Peacock: [00:20:41] Yeah. Yeah. Absolutely. And the other reason to do it like that is, you might flush out some really important things that you need to know about. So, if you do everything that we suggest and you go out with a very thoughtful price increase campaign, and you get some feedback from people that say, “Well, look, we’re not happy.” Well, what does that tell you? But what it probably tells you that it’s not actually the price that’s the problem. It’s the underlying quality of service or the product offering that you’re selling. That’s the real problem because they’re unhappy with it.

Mark Peacock: [00:21:17] So, the price of value equation has now gone out of balance in the eyes of the customer. Before, they were okay with the price value ratio, but now it’s tilted in the direction they don’t like. So, you need to know that so far better to have those awkward conversations and find out these things, than just carry on regardless. And, eventually, you’ll lose customers and business because you don’t understand why people are leaving.

Mark Peacock: [00:21:48] So, yeah, another good reason I think to tackle your pricing at least annually, I would say, to make sure you know what your customers really value. That’s my observation on that I think, John.

John Ray: [00:22:00] And then, on the positive side, you may have value that you’re delivering in ways that you don’t even think about. I mean, I’ll give the example of the accountant, that people do business with that accountant, not because they’re technically at the top of their game, which they are, but because they can explain difficult concepts in a way that folks can understand. I mean, I hear that a lot. And so, that’s a highly valued skill that that particular practitioner might not think about.

Mark Peacock: [00:22:45] Absolutely. And that’s a great point. So, it’s the soft reason why people are actually, “I love working with John because he explains things really clearly.” So, if John, the accountant, could turn that into a positioning statement and be very clear about the market, the people that they serve, and why he is particularly good for them, that will justify a price premium. Because people would be willing to pay more for John, the accountant, who’s brilliant at explaining difficult technical problems than the other guy down the road who just completes the books and sends in your tax return and doesn’t really explain things.

Mark Peacock: [00:23:27] So, really understanding that and having then the confidence to take that back to your business and say, “Yeah. Look, we’re really good at this. We should be pricing in line with the value that we’re offering because our customers see that value and are willing to pay for it.”

John Ray: [00:23:48] So, in terms of introducing options as a way to increase your pricing, and it sounds like there’s a process here, Mark, in going from hourly to introducing options. So, should I increase my hourly rate in the meantime while I’m preparing to introduce options?

Mark Peacock: [00:24:18] I would say not. Because if you don’t know where you’re trying to get to, you might make a mistake. Pricing is a long term game. Every single decision you make on your price today, or tomorrow, or next year will affect your business for years to come.

Mark Peacock: [00:24:37] So, for example, if we say, my hourly rate is $100 an hour. That’s your core price positioning then set for the next three to five years. And it’s very hard to move up from there. If you accept a deal and you knock a few dollars off because you really want it, well then you’ve lost that revenue and it comes off your bottom line for the next one, two, three years. So, every decision price is a long term game.

Mark Peacock: [00:25:06] So, I wouldn’t just rush ahead and increase the hourly rate without having thought through where do I want to get to in terms of my pricing. I think it’s far better to do that detailed work. It doesn’t have to be onerous or difficult. And you can come up with some ideas around options fairly quickly, evaluate the pros and cons of each, and then think, Where are we going to go with this? When are we going to do it? And is that acceptable to us as a business? I think that’s what I’d say on jumping too soon on that, John.

John Ray: [00:25:43] Got it. And what are the characteristics of successfully segmenting your clients so that you can introduce options that fit? And how important is fit with your current clients versus the clients you hope to get?

Mark Peacock: [00:26:07] Yeah. So, the simplest method that I talk about is to think about your market in terms of three different levels of price segmentation, high, medium, and low. So, every market, all of your listeners, all of their markets, will always have three levels of price willingness to pay.

Mark Peacock: [00:26:27] So, in the low segment, you’ve got your customers who are price sensitive. So, they have a low willingness to pay either because they can’t afford what you do. Or they don’t see the value in it, which is a different question.

Mark Peacock: [00:26:41] And the high willingness to pay segment, you’ve got customers that are willing to pay more, relatively speaking, for what you do because they value things other than price. They value your brand, your expertise, your reputation, the level of service you provide, whatever it is.

Mark Peacock: [00:26:58] And then, in the middle, you’ve got the core of your market, which is those people who don’t want to play at the cheapest end of the range but can’t afford the more expensive end of the range. And if you can design three options that fits each of those segments, you’ll be in a very good place, and that could be based around a package of services.

Mark Peacock: [00:27:23] So, one digital marketing agency I worked with had three bundles. An entry bundle for start up businesses for digital and design services. A medium bundle for existing businesses who were happy with where they were at with their marketing but wanted to take it up a level. And then, a premium bundle for investors and high growth businesses who were like, “Look, we’re totally ambitious. We want to go for it, basically.” And there were increasing components to each of these bundles. And, obviously, the fee went up, whether it’s a project fee, or a monthly retainer fee, or whatever it is.

Mark Peacock: [00:28:11] And the beauty is, when you now go out to market and sell like this, whoever you meet, you can basically say, “Well, here are the three options we have or here are three typical options. Which one of those best meets your needs at a price you’re willing to pay?” And you really don’t mind if the really wealthy buyers buy the cheapest package or the guys in the startup buy the most expensive package. You don’t mind. You might be slightly surprised.

Mark Peacock: [00:28:38] But it’s entirely their decision because they feel in control of that buying decision, which option might I choose. And it moves the buying process on one stage from “Am I going to buy from you, yes or no?” to “If I do buy from you, which option might I buy?” And that’s why options are so powerful.

Mark Peacock: [00:29:00] I always say one of the most important parts of pricing is choice and freeing your customers well-designed choices of price will do far more for your business than anything else. And three is the magic number, as we know. Two is okay, because it’s more than one. Four might be okay, but you’re probably getting into the territory of that’s too many.

Mark Peacock: [00:29:29] So, you can come up with three options that meet a broad range of customer needs. You’ll be doing very well. And you’re hedging your bets. You’re presenting a range of prices to the broadest spectrum of your market in terms of what they might be willingness to pay. So, you’re going to increase your chances of success.

John Ray: [00:29:52] So, I can hear folks now saying, “This is lovely, this conversation you guys are having about options, but how do options fit with increasing prices?” I mean, why does introducing options help me increase my prices?

Mark Peacock: [00:30:09] Okay. So, you could either just increase your price and, let’s say, it’s an hourly or a daily rate. So, let’s say one approach is to say, “Well, I’m charging $100 an hour and I’m going to put that price up by 10 percent. So, for next year, the price is $110 an hour.” So, that’s the traditional approach.

Mark Peacock: [00:30:28] The alternative to that is to say, “Well, if we can turn that hourly rate into packages, we can now go out to all of our existing customers and say, ‘Previously, we’ve been working on an hourly rate, but would now like to present to you some different options that you can consider.'” And it’s entirely their decision. So, I’ll use hourly rates for the sake of comparison, but it’s not really the best way to do it.

Mark Peacock: [00:30:56] But what I mean by that is, say for example, you now go out to your customers and say, “Well, if you want to carry on buying the same service, exactly the same, it’s $100 an hour. Or you can have a slightly enhanced version of that, which is $110 an hour. Or you can have the premium version of that, which is $130 an hour. Which one of those best meets your needs at a price you’re willing to pay?”

Mark Peacock: [00:31:19] And then, what you’ll find is that, certainly, your customers will stick with $100 product. But a proportion will upgrade to the 110 product. And maybe a couple will take 130 product. Because until you present that option to them, they can’t choose it, they can’t buy it.

Mark Peacock: [00:31:39] And then, if you can do the math, you can work out the weighted average increase. And what you’ll find if, say, 50 percent stay on the current rate, 30 percent by the £110 product, and 20 percent or less by the premium $130 product, your net average prices will have increased by between five and ten percent without you having to enforce an actual price increase on any of your customers. And that’s the power of choice.

Mark Peacock: [00:32:13] It’s that little bit of mass that works out the net effective price increase overall across each of the options. So, you can achieve increased prices by being more customer friendly, more tailored, and more responsive, and not upsetting your customers, which sounds a good way to do it. Why wouldn’t you do it like that if you know that’s the best way to do it?

John Ray: [00:32:41] Yeah. I mean that’s the proverbial having your cake and eating it, too, right?

Mark Peacock: [00:32:46] Yeah. Exactly.

John Ray: [00:32:48] Right.

Mark Peacock: [00:32:49] Sorry. Go ahead.

John Ray: [00:32:49] No. Go ahead, please.

Mark Peacock: [00:32:51] So, I was just going to say I’d use the example there by illustrating hourly rates. But, of course, that’s not the best way to do it. It’s far better to turn it into packages of options, which could be a monthly retainer, a monthly fee, a project fee, et cetera, rather than three different hourly rates. Just to clarify, I don’t want people thinking, “Mark said have three different hourly rates.” I mean, you can but it’s not ideal. I just wanted to clarify.

John Ray: [00:33:22] Thank you for clarifying that because I can see somebody getting that mixed up there. And so, talking about hourly rates, is this the way that I should make the jump from hourly? And should I make that jump with new clients only, or all of my clients, or just a few? What do you counsel on that?

Mark Peacock: [00:33:54] Yeah. It’s a good question. I always say when thinking about new pricing models, always think about new customers first, and then existing customers second. Because if we start by thinking about how can we improve our prices with our existing customers, we get tied up in knots because we just think, “Well, my biggest client, it’s going to be a nightmare talking about price increases to him, so I don’t want to do that.”

Mark Peacock: [00:34:22] So, let’s just put that issue to one side for a second and just think about new business. And the advantage of that is you can start with a blank sheet of paper, because none of your prospects or potential customers at this stage will know what your pricing is. So, you can go to them with a totally new price proposition and try things out. So, you could say, “Well, I’m just going to try out this new pricing approach on new customers only for a couple of months until I get confident with it. And then, I’ll bring it back to my existing customers and work out how we could apply it to them.”

Mark Peacock: [00:35:00] So, yeah, I always encourage folks to think about pricing for new business first, and then come back to your existing customers, and then seeing how you can translate or migrate the existing customers on to the new pricing model. And it just makes life a lot easier as well. They can have more fun because they’re new customers. So, let’s design something that’s really going to float their boat and meet our commercial requirements in terms of revenue and profit.

John Ray: [00:35:34] Let’s shift gears here, Mark, and talk just in general about how to communicate a price increase. And you’ve written and spoken on this. Let’s talk about issues like notice period, how much notice should I give? And just the communication of that, how that should unfold.

Mark Peacock: [00:35:59] And this is just as important as working out what is my new price. How you communicate and articulate and justify your pricing is as important as how you set the number. And when it comes to price increases, I think there’s a number of elements of good practice that businesses should follow.

Mark Peacock: [00:36:19] So, talking about notice period, so what’s a good what’s a reasonable notice period? So, for me, anything less than 30 days notice of a price change is a bit unreasonable. If you’re on the receiving end of a price increase and said, “Hey, John. We’re going to put our rates up effective tomorrow.” You’d be like, “Okay. Well, I haven’t budgeted for that and I wasn’t expecting it, so I’m a bit I don’t like that.”

Mark Peacock: [00:36:48] So, my advice is always minimum 30 days, even better, two months notice. So, if you can put your prices up, let’s say in January, the start of the calendar year, you need to be writing to your customers or emailing them or communicating with them by the end of October. Now, this seems quite far out, doesn’t it? “Oh, my God. That’s quite a lot.” But what it does is it gets your mind, your brain, your business geared up properly to manage and handle that price change, that price increase. So, by October, you need to have done the thinking about how you’re going to implement and apply this price increase. So, that’s what I’d say on timing.

Mark Peacock: [00:37:35] And the second reason for doing it like that is, again, it flushes out any disgruntled customer. So, you’ve got more opportunity to rescue that client and either do something bespoke for them. Or if you find that the two parties, there isn’t a meeting or there isn’t a good fit, then maybe it is time to part ways. I would say it’s far better to have 97 customers paying a higher rate than 100 customers at a lower rate. You’ll be better off financially, and you won’t be working as hard. So, what’s not to love about that?

Mark Peacock: [00:38:19] In terms of communication, it depends how many customers you have. For example, if you have hundreds or thousands, then you need to be doing some kind of mass communication, email, or letter. If you only have a couple of dozen, you can probably pick them off one by one verbally on a phone call, if you’re comfortable doing that. But get your script ready. And I don’t mean a script in the specific sense of saying something word for word. I mean, a guideline script. So, get your reasons ready. And this applies whether it’s a verbal conversation or a written communication.

Mark Peacock: [00:38:58] So, the way I would always position a price increase is as follows. We start with an acknowledgement that costs have risen. Now, in the current climate, and I’m sure this is the same in the U.S. as it is in the UK, prices are rising, costs are rising significantly. So, that is to your advantage because businesses, your clients, your customers, are aware that this is a problem at the moment.

Mark Peacock: [00:39:29] So, we can say something like, “As I’m sure you know, costs are rising at the moment and we need to move our business forwards to keep pace with the growth of our business,” or something like that – I didn’t word that very well. But we need to acknowledge upfront that cost is an issue. But once we’ve done that, we then move on to what that means for the customer. So, we only dwell on it very briefly, but then we move on to what does that mean for you. So, we can talk about the proposed price increase at that stage. “So, from next January or next April or next September, the new pricing will look like this, blah, blah, blah.”

Mark Peacock: [00:40:16] And then, it becomes a sales task. A price increase is a sales job in the sense that you have to remind and reinforce and reconvince all of your customers why they should continue to buy from you. So, we remind them of all of our strengths, all of our USP, all of our qualities.

Mark Peacock: [00:40:37] For example, “We are still the number one accountancy in our area. We specialize in providing friendly, easy to understand advice that meets the needs of your kind of business.” Or, “We’re the most creative marketing agency and we’ve won loads of awards and we are delighted to work with X,Y,Z and look forward to coming up with more ideas for you next year.”

Mark Peacock: [00:41:04] So, you’ve got to sell hard on the reasons and the benefits that people chose you in the first place. And update them, if you can, and remind them that that’s why they chose you in the first place. And then, you let them decide. Don’t play the hard sell in terms of where you’ve got to switch to our new pricing from next January. Let them decide. Because they are in control, so let them decide. And give them an out. If they don’t want to carry on, then say that’s fine. You know, “It’s been great working with you, but if you don’t see the value in this, then fine.”

Mark Peacock: [00:41:46] So, I’d be very gentlemanly about it, very professional, and treat people courteously, basically. So, I hope I’ve talked through the key stages there clearly, John. So, acknowledge the reason for the price increase. Costs are rising, explain what impact that is going to mean for the client as quickly as possible. Get it upfront. And then, thirdly, resell benefits as to why they should continue to work with you. Does that make sense?

John Ray: [00:42:18] Yes. Absolutely. Now, one post you made that discussed this, you applauded the idea of, in that first communication, not disclosing what the price increase would be. And I’m sure that’s shocking people to hear that. “You mean I’m going to tell people I’m raising price, but I’m not going to tell them how much? And isn’t the client going to ask me how much?” So, talk through that for us.

Mark Peacock: [00:42:54] Yeah. So, this is an even better price increase strategy. I’ve used it with my clients. And in the LinkedIn post I did, I was referring to my mobile phone provider, Virgin Mobile. And it’s exactly the same approach. And it’s a two stage communication process.

Mark Peacock: [00:43:14] So, stage one is we give all of the explanation and all of the reasons why our prices need to go up. And remind people of all the benefits of why they should continue to work with us. But we don’t tell them what the actual price increase is. All we say is, “We’re going to write to you next month and confirm you new prices for next year.”

Mark Peacock: [00:43:39] So, let’s say we write that first stage communication in October, and then we write the second stage for implementation in January, and then we write a second communication in November, and say, “Dear Mr. Customer. Following our communication last month, we’re pleased to confirm your new prices for next year as follows.” And then, you list them on the page.

Mark Peacock: [00:44:01] And what that does is a number of things. So, it manages expectations because the client now knows, “Okay. I’ve got a price increase coming.” It will flush out some early objectives. So, if you have any people that are particularly unhappy or want more detail, they will get on the phone to you or they will reply via email so you can start to have conversations with them.

Mark Peacock: [00:44:27] But most importantly, by the time they actually receive the price increase letter, which hopefully has some options in, in their mind, they’ll be thinking, “Oh, god. Is John going to push his prices up by – oh, gosh – it could be between ten and twenty percent maybe? I’ve heard of other people doing that in similar areas.” And you come along and it’s only eight percent and they go, “Oh, okay. Well, it’s not so bad then.” They still might quibble at this point. This is real life. This is grown up stuff. They still might argue at that point once they know what the real number is.

Mark Peacock: [00:45:03] But it’s a far better process because you’re being courteous. You’re letting them know where you’re at with your business. You’re also demonstrating courtesy by using this two stage process. And helping them get to grips with their planning, their forecasting, because they’ve got to think about their budget for next year.

Mark Peacock: [00:45:25] So, if they spent $5,000 a month on marketing fees, they need to know it might go up to five-and-a-half thousand. So, let’s shove that in the budget. And then, when the agency comes along and says, “Well, it’s only $5,300.” “Okay. Fine. Well, we’ve made a little saving.”

Mark Peacock: [00:45:43] So, I love that two stage process. Virgin did it to me for my mobile phone. I could see exactly what they were doing. But, of course, by the time the actual price increase came along, it was only an extra $0.93 a month on my mobile plan. I did the same thing for a manufacturing company. They had 300 customers, and it worked really well for them. So, no reason it can’t work for anybody in the professional services industry as well.

John Ray: [00:46:14] Yeah. That’s a really important thing you just mentioned, the psychology of it is that people assume the worst. And the worst is probably always a whole lot higher than what you’ve got in mind as a service provider. So, I love that.

John Ray: [00:46:34] We’re kind of running down on time, but I want to ask you one quick question before we wrap. Back to this business of raising prices every year, so I can hear people saying, “I’m going to be writing letters all year long here if I’m raising prices every year.” Talk about why you think that’s important as opposed to just one big increase every few years.

Mark Peacock: [00:46:59] Okay. So, far better to raise your prices on a regular pattern of frequency. So, do it once a year, every year, even if it’s only a couple of dollars or a couple of percent. And part of the reason for doing that is (A) you get your business into the habit of doing that, but you also train your customers to expect it. Even better, in your standard terms of business, you should have a clause that says, “We will increase our prices every year by an amount linked to inflation,” so they know it’s coming.

Mark Peacock: [00:47:34] So, get into the habit of doing it regularly. Do it the same time every year, whether it’s January, or April, or whatever works for you. And if there is a common habit in your industry, follow that common habit. So, if your industry generally puts prices up in January, do it in January, not in June. Because you’ll stick out like a sore thumb if you do it in June and everybody else is doing it in January.

Mark Peacock: [00:48:02] So, far better that than waiting three years and saying, “Oh. Sorry, guys. Prices are going up by 20 percent next year. We haven’t done it in three years. I hope that’s okay.” Far better, regular, small, frequent changes rather than big changes that are going to disrupt your business cycle. So, that’s my advice on that, John.

John Ray: [00:48:24] Okay. Awesome. Wow. You have shelled out the value today, Mark. And, folks, I think listening to this, you’ve gotten thousands of dollars worth of value here from Mark at no charge. So, thank you for that. But for those that want to dig deeper, learn more about your services that you offer, and maybe ask some questions, can they get in touch? And if so, how can they do that?

Mark Peacock: [00:48:55] Yeah. Of course. So, they can find me on my website which is pricemaker.co.uk. And if you go on there, there’s a pricing challenge and you click on it. It’s a self-assessment and you get a scorecard on your pricing capability. So, fill that in and it will give you loads more value. And you’ll find my contact details on the website as well. So, that’s pricemaker.co.uk.

John Ray: [00:49:21] Terrific. Mark Peacock, folks. Mark, it’s been a pleasure and thank you again for coming on and delivering so much value.

Mark Peacock: [00:49:31] Yeah. It’s been a pleasure, John. I always love talking about pricing, so thank you for inviting me today.

John Ray: [00:49:36] Thank you. And friends, just a reminder, if you’d like to hear more of this series, go to pricevaluejouney.com. And to connect with me directly, just send an email, john@johnray.co. Thank you for joining us.

 

 

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 that 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: increasing prices, John Ray, Mark Peacock, price increase, PriceMaker, PriceMaker Limited, pricing, professional services, professional services providers, solopreneurs, The Price and Value Journey

How to Get Great Referrals

March 21, 2022 by John Ray

How to Get Great Referrals
North Fulton Studio
How to Get Great Referrals
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How to Get Great Referrals

How to Get Great Referrals

For us as professional services providers, the answer to the question of how to get great referrals lies in the clients we already have. 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. How do you get great referrals? I don’t mean referrals which are average or marginal. I mean referrals to clients who are the best fit for your practice.

John Ray: [00:00:17] For professional services providers, there’s a simple answer. The answer starts with the clients you take on, to begin with. You only accept clients who are the best fit for you and your practice. Best fit clients are those clients whom you deliver stellar results for, who see the value in what you deliver, the transformation that you give them. They’re happy to pay for that value and they’re clients you enjoy working with.

John Ray: [00:00:47] Great clients know other great clients for you. And your best clients want you to succeed. And they’ll go out of their way to refer that kind of business to you. They do this in part because they feel invested in you. That’s the way great clients react to their services providers whose work they value. That’s part of what makes them great.

John Ray: [00:01:13] Your best fit clients are invariably grateful. They appreciate you and the substantial and positive changes you’ve brought about for them. It might even be years after the engagement, but your best fit clients still refer other superb clients to you because they’re still basking in the glow of the work you did, and they remember.

John Ray: [00:01:37] Now, conversely, how do you get poor quality referrals? Well, you guessed it, if you compromise or stretch and you accept clients who aren’t the best fit, then guess what profile of client they’ll send your way. A client that looks just like them. A client who is not an ideal fit for your practice.

John Ray: [00:02:02] Roses prefer roses and thorns refer thorns. That’s another reason why it’s vital that you take good care in the clients you take on. Focus on clients who are the best fit. Who you can do a great job for, who willingly write checks which are commensurate with the value that you deliver, and who you enjoy working with.

John Ray: [00:02:27] I’m John Ray on The Price and Value Journey. I’m honored that you’d spend time listening to this episode. If you’d like to hear more of the series, you can find it at pricevaluejourney.com. If you’d like to connect with me directly, you can 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 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: clients, generating referrals, John Ray, Price and Value Journey, pricing, professional services, professional services providers, referrals, solopreneurs, The Price and Value Journey, value

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