professional services Archives - Page 9 of 14

“Know, Like, Trust” Starts with Service

May 27, 2022 by John Ray

North Fulton Studio

"Know, Like, Trust" Starts with Service

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“Know, Like, Trust” Starts with Service

“People do business with people they know, like, and trust.” It’s a cliche for a reason, because it’s true. “Know, like, trust,” though, has a preamble: service. Serving with no agenda or precondition is fertilizer for trust to grow.

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. Some clichés become platitudes when they’re repeated constantly because they are, in fact, true and time tested. And one of those clichés is that people do business with those that they know, like, and trust. Well, like many clichés, this one is repeated so often that the underlying truth of it gets blurred or even lost.

John Ray: [00:00:31] A few months ago, I received a LinkedIn connection request from someone who seemed like a good connection for me. Their profile was solid, so I accepted the invite. This person responded with a note about how he just loves connecting with other professionals in my state and how he is amazed by the relationships he’s cultivated from LinkedIn. Okay. So far so good. I agree with that. And I’m also struck by how you can develop relationships using LinkedIn.

John Ray: [00:01:06] But that was the high watermark of the encounter of our so-called relationship. His message quickly veered to his tax strategy service and how he was certain he could save me money. He didn’t ask one question about myself or my business. Not just a question which might reveal whether I needed his help, which I don’t, but even just an inquiry which might reveal a genuine interest in me and my work.

John Ray: [00:01:37] Finally, his sixth message in four days, literally, began with, “Hate to be that pest but wanted to follow up with you one last time.” “I can only hope so,” I thought. This gentleman’s professional brand is now pest. Yes, I know him now, but not in the way that involves likability and trust.

John Ray: [00:02:04] But it’s worse than that. He destroyed any sense in my mind that he might be an expert in his field. If I need some tax strategy help in the future, do you think I’m going to think of this guy as my go-to source? Hardly. As he’s branded himself more as a hawker of a service than an expert in his field.

John Ray: [00:02:28] Now, in contrast, here’s what serving looks like. I recently got a call from a lady who I do business with and she had a suggestion for a new client opportunity for me. Now, this was the entire reason for the call. She had no other agenda. She wasn’t trying to sell her service in any way or use the call as a pretext for something else, or a pivot to some other subject that benefited her. It was obvious from the nature of her call that she had been thinking about my business in a strategic, not a superficial way, one which revealed that her default operating system was rooted in serving.

John Ray: [00:03:18] Now, this behavior is typical with her, which is why her business has grown and prospered over the years. Now, yes, she’s known, liked, and trusted. But all of that is triggered by her practice of putting service first without an agenda. Yes, it’s counterintuitive and it’s hard to stay in a service first frame of mind, particularly if you are new in your practice or you’re struggling to make it go.

John Ray: [00:03:49] It’s easy to dismiss it and say that it works for this person, or some other person, but it won’t work for you because your circumstances are different. Yet, if you truly make it a practice to serve first in your business, you’ll not only stand out, but your business will blossom over time. Know I can trust starts with service.

John Ray: [00:04:18] I’m John Ray on The Price and Value Journey. Past episodes of this series can be found at pricevaluejourney.com. Or if you would like to subscribe on your favorite podcast app, you can do so, and we would be honored if you would do that. If you would like to connect with me or send me a question, my email is 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, Alpharetta Tech Talk, and Business Leaders Radio. house shows which feature a wide range of business leaders and companies. John has hosted and/or produced over 1,300 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®: LinkedIn | Twitter | Facebook | Instagram

Trading a Corporate Job for One in Your Own Business

May 23, 2022 by John Ray

North Fulton Studio

Trading a Corporate Job for One in Your Own Business

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Trading a Corporate Job for One in Your Own Business

As you’re building your professional services business, it can sometimes feel like all you’ve done is trade your corporate job for one in your own business. This episode addresses how and why this happens, and charts a way out of this terrible feeling.

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 receive a lot of feedback from this podcast and from what I write, much of it is private which I understand, who wants to talk about their own frustrations, disappointments, stress, and failures which come from inadequate pricing. I know this firsthand.

John Ray: [00:00:23] Here’s a note I received from a consultant with her own practice in response to something I had posted on LinkedIn, and I’m using this with full permission. “Thank you for sharing that article about pricing. When I took on my first few clients, I was over delivering and under charging. I had learned that I shouldn’t do this because I was more stressed than when I had a job. Once I learned that I could walk away from a client and say no, I felt more confident. But as I learn more about selling contracts, et cetera, it is all about the solutions you provide to the client. It is about how you can make their business and emotional impact better. Thank you for sharing and offering your guidance with your content.”

John Ray: [00:01:17] There’s so much here that this person wrote that’s valuable. But the comment about being more stressed than when she had a job stood out for me. When I speak with a professional services provider about their practice, one of the red flags which indicates a pricing problem is working too hard for too little money. It’s a terrible feeling.

John Ray: [00:01:42] Maybe you’ve left a large professional services firm because you want independence and flexibility. Maybe you’ve left corporate because you are tired of their backstabbing rat race, which has no respect for your family and your personal life. You start your practice and everything is fresh and hopeful. You pull in a few clients and start to get some momentum. You may know that you’re under charging, but that’s part of the dues you think you have to pay to get going. Or maybe you think you have to start out with a lower fee in order to build your business.

John Ray: [00:02:19] After a while, you aren’t getting any sleep, you’re frazzled. You resent your clients who you are busting your butt for. And your significant other is telling you that you made a big mistake. That proud moment when you became a business owner, that euphoric feeling when you were holding the metaphoric glass trophy over your head, it’s now laying on the floor, shattered, because you don’t own a business. You own a job.

John Ray: [00:02:47] There’s a pronoun problem in what I just described. It’s all about I and me. There’s nothing here about the clients I’m working with, whose businesses I’m straightening out and whose lives I’m changing.

John Ray: [00:03:00] My friend who wrote this note points to one of the biggest problems services providers have with their practice. They haven’t spent nearly enough time developing a deep understanding of the needs, problems, hopes, and goals of the target tribe of clients they want to serve. Their description of a client need involves something functional, like filing a tax return or developing digital advertising. Those functions are just the means to a bigger and deeper end, which clients are looking for, solutions which permanently change their business and personal lives for the better.

John Ray: [00:03:42] It doesn’t matter whether they are bakery owners, farmers, attorneys, truck drivers, or programmers. When you’re able to get under the skin of the members of the tribe you want to serve, you end up having more substantial conversations with your clients. They feel like you understand them, and your confidence rises because of that. You’re prescribing remedies which meet long held needs and dreams, not just for the business, but for the business owner, their significant other, and their family. You’re making, as my friend indicates in her note, an emotional impact, not just a financial one.

John Ray: [00:04:22] And the door opens for your pricing to change for the better because you are pricing based on client outcomes, not some silly measure like your timesheet. And you’ve regained ownership of your business.

John Ray: [00:04:38] I’m John Ray on the Price and Value Journey. Past episodes of this series can be found at pricevaluejourney.com or on your favorite podcast app where you can subscribe, and we would be honored if you do that. If you would like to send me a note, john@johnray.co is my email address. Thank you for joining me.

About The Price and Value Journey

The show is produced by the North Fulton studio of Business RadioX® and can be found on all the major podcast apps. The complete show archive is here.

John Ray, Host of The Price and Value Journey

John Ray is the host of The Price and Value Journey.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®: LinkedIn | Twitter | Facebook | Instagram

Prospects Who Check References

May 20, 2022 by John Ray

North Fulton Studio

Prospects Who Check References

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Prospects Who Check References

What indication can you draw from prospects who check references? What does checking references reveal about a client’s price sensitivity or their orientation toward value? The episode explores those questions.

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. I once spoke with a client about better discerning prospects whose sole concern is price. His experience led him to the belief that when a prospect doesn’t check with references, which have been provided, then that’s an indication that the prospect is exclusively focused on price.

Now, I hadn’t thought of this before, but the idea makes sense to me. If a prospect checks your references, they’re interested in the how of what you do, how you work with a client generally, your responsiveness, your ability to explain difficult concepts in plain English or other intangibles, which they value. They may sense you possess these intangibles they’re looking for because of the conversations that the two of you have had up until that point, but they want to confirm them.

Further checking with references takes time. The effort involved in emails, going back and forth with phone calls, all that can be tedious. And a client’s willingness to make this investment is probably a reliable indicator of a client who is not just serious but one more concerned with a decision to buy grounded and perceived value instead of price.

My client’s hypothesis, I think, rings particularly true in an extraordinarily complex service offering, where a client is particularly uncertain in deciding and where the cost of selecting the wrong provider is high. It could be, on the other hand, that a prospect doesn’t check your references because you’ve got stellar testimonials so thoroughly documented that there’s no need to make a phone call. Such a circumstance is probably rare, though, as most professional services providers really don’t spend that much time at all cultivating and documenting effective testimonials.

So, what’s the point? The point is that you’re better off in your practice spending time with prospects interested in making a value-oriented decision. Those are the clients willing to pay a price that’s reflective of the value that they perceive, and they’re the ones that are much easier for you to work with. So, how do these thoughts apply to your own business?

I’m John Ray on the Price and Value Journey. This series can be found at PriceValueJourney.com or on your favourite podcast app. And we’d be honored if you would subscribe to the series. If you’d like to connect directly, you can email John@JohnRay.co. Thank you for joining me.

About The Price and Value Journey

The show is produced by the North Fulton studio of Business RadioX® and can be found on all the major podcast apps. The complete show archive is here.

John Ray, Host of The Price and Value Journey

John Ray is the host of The Price and Value Journey.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®: LinkedIn | Twitter | Facebook | Instagram

The Most Essential Element of a Great Testimonial

May 18, 2022 by John Ray

North Fulton Studio

The Most Essential Element of a Great Testimonial

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The Most Essential Element of a Great Testimonial

While we are grateful for any client affirmation of our work, what makes for a great testimonial, one which is most effective? One word: pain. Specifically, the client’s pain and dysfunction before our intervention.

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. What’s the one essential element of a great testimonial? Every great testimonial involves pain. It’s the pain that you, as the professional services provider, freed your client from. I was reminded of this recently when I received a note from one of my North Fulton Business Radio guests, that’s one of the shows that I host. The note said, “I was so nervous wondering what I was going to say that I almost canceled. You made me forget I was on the show. We were just having a conversation, and it was so easy. Thank you so much for making my appearance so enjoyable.”

Now, imagine if the note had simply said, instead of what I just read, imagine if it had said the following, “You made me forget I was on the show. We were just having a conversation, and it was so easy. Thank you so much for making my appearance so enjoyable.” Now, the powerful testimonial that I read to begin with has been neutered somewhat. It’s now a nice compliment, nice to have, and these words feel good, but there’s something missing in the words that I read without referencing the pain. It’s the pain.

Let me read those original comments again. “I was so nervous wondering what I was going to say that I almost canceled. You made me forget I was on the show. We were just having a conversation, and it was so easy. Thank you so much for making my appearance so enjoyable.”

Stage fright is agonizing, and the nervousness of wondering whether you’ll say the right thing about your business involves a lot of angst and personal second guessing before that interview, speech or elevator pitch, whatever you’re delivering. This person lit up a fear many can identify with, and that gives that note a much greater impact.

Great testimonials are client-centered. They’re not centered on us as the services professional. Comments that I might receive about my show like, “John, you’re such a great host,” or “You’re so wonderful or a great guy,” well, they’re the skim milk, I’d call it, of testimonials. The skim milk version of testimonials. They might make me feel good, but the point of getting testimonials isn’t about me, unless the principal concern in my business is buffing up my own self-image instead of building the bottom line.

The reason you want testimonials is to help prospective clients who read them understand the pain you can deliver them from. You want others to read that testimonial and self-identify. Bottom line, it’s about them. Any endorsement you receive from a client is a precious gift you should be grateful for. And sometimes, it’s impossible to control what’s said when you are privileged to get a testimonial that’s unsolicited.

When you’re able to ask for an endorsement, though, ask your client to recall the pain they were in before you fix their problem and how their business and life has changed because of your involvement. The more specific the problem, ‘My sales were down 25%,” let’s say. And then the results, “My sales are now at an all time high and I’m not working 12-hour days,” the more those results are stated, the better.

The best testimonials are mostly about the client’s journey to a better business and life, and, yes, the role you played in that journey. But the emphasis is on the client. They’re the hero. It’s about them. And it starts with their pain. That’s the one essential element of a great testimonial.

I’m John Ray on the Price and Value Journey. Our show series can be found at PriceValueJourney.com or on your favorite podcast app. And we would be honored if you’d subscribe to the show and give us feedback along the way. You can email me at John@JohnRay.co. Thank you for joining me.

About The Price and Value Journey

The show is produced by the North Fulton studio of Business RadioX® and can be found on all the major podcast apps. The complete show archive is here.

John Ray, Host of The Price and Value Journey

John Ray is the host of The Price and Value Journey.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®: LinkedIn | Twitter | Facebook | Instagram

Learning from a Martial Arts Studio

May 16, 2022 by John Ray

North Fulton Studio

Learning from a Martial Arts Studio

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Learning from a Martial Arts Studio

A flyer from a martial arts studio offers a lesson to professional services providers who want better results from their business development activities: focus on client outcomes, not inputs such as certifications or experience.

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. Recently, I ran across a flyer for a local martial arts studio. Now, here are the bullet points this flyer prominently displayed to attract parents who are interested in possibly enrolling their children. Better academic results. Now, to reinforce this point in the background of this flyer behind an image of smiling children was a report card with straight A’s. Improve self esteem, develop discipline, character development, respect for others, increased concentration and focus.

Now, what’s missing from this list? Well, there was nothing about the experience of the instructors. nothing about the belt level of the instructors, whether even the instructor uses deodorant or is pleasant to be around. There wasn’t anything about the instructor. The point is that this martial arts studio understands what parents are looking for as they buy for their children. Parents are looking to help their kids get ahead. They’re looking for transformation, for outcomes for their children. It’s not that the instructor isn’t important. It’s just that the experience and expertise of the instructor is assumed, as is, of course, the use of deodorant.

Clients of professional services firms are no different in the way they assess services providers. They are looking for improvement in and transformation of themselves and their business. It’s not that our certifications, degrees or even our experience don’t matter, but what gets us to the table with our best-fit clients is demonstrating an understanding of what they’re looking for. You see, clients buy outcomes, not inputs.

And what else was missing from that flyer? Well, there wasn’t any mention of price. No exclusive offer, no discounts, no freebies. If we understand the wants, dreams, problems and hang-ups of our clients, we don’t need to lead with price.

I’m John Ray on the Price and Value Journey. Past episodes of this series can be found at Price Value Journey or on your favorite podcast app. We’d be honored if you’d subscribe to the series, and we’d love to get your feedback. You can email me John@JohnRay.co. Thank you for joining me.

About The Price and Value Journey

The show is produced by the North Fulton studio of Business RadioX® and can be found on all the major podcast apps. The complete show archive is here.

John Ray, Host of The Price and Value Journey

John Ray is the host of The Price and Value Journey.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®: LinkedIn | Twitter | Facebook | Instagram

Your Price is Not the Client’s Cost

May 13, 2022 by John Ray

North Fulton Studio

Your Price is Not the Client's Cost

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Your Price is Not the Client’s Cost

Your price and what the client mentally weighs as their cost are two different figures, a vital concept for us as professional services providers to understand. (In this episode, I quote from Kevin Kelly’s post, 103 Bits of Advice I Wish I Had Known. You can find that post here, and there’s a ton of value in it, guaranteed.)

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. Kevin Kelly is the Founding Executive Editor of Wired. He’s a prolific writer, and a wise observer, and commentator of all things technology. For his 70th birthday, Kelly offered 103 bits of advice I wish I had known. What he calls Bits of Unsolicited Advice he’s compiled and added to over time.

One of those bits of wisdom involves pricing. What you actually pay for something, he writes, is at least twice the listed price because of the energy, time, money needed to set it up, learn, maintain, repair, and dispose of it at the end. Not all prices appear on labels, he says. Actual costs are two times listed prices. Now, these wise words are written from a buyer’s point of view, of course. Whatever business you’re in, it’s important to apply this buyer’s perspective to your own product or service.

What’s the cost of purchasing, which a buyer may be considering? What are not only the hard dollar cost, but as Kelly references, the cost, which are intangible as well? As professional services providers, if we’re not considering the cost of change and addressing it up front in our conversations with prospects, we’re missing out. Most prospects haven’t thought it through enough to think of actual cost being twice the listed price, but that prospect sitting in front of us knows intuitively there’s a cost premium, which is more than the check they’re writing to us.

For example, small business owners thinking about making a change with accounting services providers are inevitably thinking about what they’ve got to do to pull the records together for their new provider. The intangible cost that they are mulling could include the time necessary to get a new services provider up to speed, the unknown. It’s the devil I know versus the devil I don’t syndrome. The aggravation and frustration of making a change. It could be embarrassment about how shoddy their books are. Maybe it’s the fear of telling the current accountant that they’re getting replaced. Some of these intangible costs can be actively lowered by any of us as the services provider.

Technology has made transfer records, for example, quite easy. We can lower fear of the unknown and a potential aggravation by covering the onboarding process we have for new clients. Even for the embarrassment-related intangible, we can lower the burden, the intangible cost the prospect might be feeling by discussing how there’s nothing they have that’s going to shock us. So, they need not feel shame or guilt.

If this thought exercise is brand new to you, then talk with your clients and ask them what their reservations were when they brought their business to you. The value you receive from these conversations, I assure you, will exceed the intangible cost of them.

I’m John Ray on the Price and Value Journey. Past episodes of this series can be found at PriceValueJourney.com or on your favorite app. And we’d be honored if you’d subscribe to our series. You can also contact me directly. John@JohnRay.co. Thank you for joining me.

About The Price and Value Journey

The show is produced by the North Fulton studio of Business RadioX® and can be found on all the major podcast apps. The complete show archive is here.

John Ray, Host of The Price and Value Journey

John Ray is the host of The Price and Value Journey.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®: LinkedIn | Twitter | Facebook | Instagram

The Immensely Valuable CPA

May 11, 2022 by John Ray

North Fulton Studio

The Immensely Valuable CPA

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The Immensely Valuable CPA

What are the characteristics of an immensely valuable CPA, one who clients cannot do without? The answer goes beyond degrees, designations, and even technical expertise. A story here not just for CPAs but all professional services providers.

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

TRANSCRIPT

John Ray: [00:00:00] Hello. I’m John Ray on the Price and Value Journey. Recently, I sat with an older business owner who is a 50/50 partner with a relative. They’re getting closer to that inevitable time when they are transitioning out of the business and there are problems. The relative’s behavior is erratic, and the business has some unique characteristics, which will make a sale challenging. This owner was wondering how he could navigate all this, a situation which could turn into a quagmire, if not handled just right.

I asked him who among their professional services providers could help mediate and walk through with the two of them this business transition. It had to be someone both he and his relative trusted implicitly. We agreed that having the right person there to smooth any friction would save a lot of hurt feelings, anxiety, and maybe a bunch of legal bills if everything descended into a legal fight. The business attorney had just passed away, but the long-time CPA for the business was still active. Do both of you trust – I’ll call him – Joseph? “Do you value Joseph’s opinions?” I asked him. Do both of you listen to him? How’s his bedside manner? I asked several questions like this about Joseph, and all the answers led to a conclusion this man agreed with, that. Joseph, the CPA was the ideal person, possibly the only person to companion the two of them through the looming transition.

Now, what makes Joseph not just important, but immensely valuable to these two business partners? What is it that makes Joseph seem irreplaceable at this point? Is that his knowledge of the tax code? His ability to help them craft a business transition, which saves both a large tax bill? His accuracy in filing tax returns? The fact that he’s been through 40 or more tax seasons? No, it’s none of these things, actually. All his experience and his qualifications are important, to be sure, but that’s not what makes Joseph more than just important. What makes Joseph immensely valuable here? What makes Joseph seem priceless as an advisor?

Joseph’s value as a professional services provider lies in his experience with these two partners. The trust he has engendered with them over time, his demeanor and his ability to mediate tough situations. All of these factors are intangibles. Intangibles that are not available with anyone else, it seems. Intangibles that these two partners can’t find with a Google search. It’s yet another example of why, ultimately, your content, your experience, your certifications as a professional services provider is not, ultimately, what drives your practice. Whether it’s your knowledge of the tax code if you’re a CPA, or social media platforms if you’re a marketing or branding expert, or the law if you’re attorney, your value lies in intangibles that, sometimes, you’re not able to see if we don’t understand what the client sees. Your value lies in more, much more than just your experience, certifications and the content that you give the world. So, what are those intangibles your clients see in you, which make you priceless to them? Do you know? If not, maybe it’s time to start asking them those questions.

I’m John Ray on the Price and Value Journey. Past episodes of this series can be found on your favorite podcast app, or you can find the entire show archive at PriceValueJourney.com. You’re welcome to send me a note, John@JohnRay.co. Thank you for joining me.

About The Price and Value Journey

The show is produced by the North Fulton studio of Business RadioX® and can be found on all the major podcast apps. The complete show archive is here.

John Ray, Host of The Price and Value Journey

John Ray is the host of The Price and Value Journey.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®: LinkedIn | Twitter | Facebook | Instagram

Balancing Humility and Confidence

May 9, 2022 by John Ray

North Fulton Studio

Balancing Humility and Confidence

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Balancing Humility and Confidence

Building a successful professional services practice requires several vital mindsets, including proficiency at balancing humility and confidence.

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. To successfully build your professional services practice, you must learn a few psychological dance steps, you might call them, or mindset shifts. You must understand the value of your intervention to the client. You must understand that it’s not about what I’m worth as the services provider, that it is the client’s perceived value of the outcomes you deliver for them. You must not allow this realization to affect your confidence in yourself or the services you provide. You must be told you’re too expensive on enough proposals to know that your pricing is close to where it should be. If all your proposals are getting accepted, you’re pricing is too low. You can’t be so needy for affirmation that you allow objections to cause you to discount to win business, a move which will fail anyway.

You must be bold enough to walk away from clients who you know are a bad fit for your practice. You must be humble enough to acknowledge that you’re not the best provider for all clients. You must be grateful for the confidence that clients place in you. You must be humble enough to recognize that you must always look for ways to deliver value. You must realize that clients change, and that, over time, you may not be the best fit for them indefinitely. You must realize that you change too. And maybe most importantly, you must give yourself a little grace and realize you’ll never get it all exactly right. After all, it is a journey.

I’m John Ray on the Price and Value Journey. Past episodes of the series can be found on your favorite podcast app. I would be honored if you would subscribe to the show. You can also find a show archive at PriceValueJourney.com. If you would like to connect with me directly with an email, you can do that at John@JohnRay.co. Thank you for joining me.

About The Price and Value Journey

The show is produced by the North Fulton studio of Business RadioX® and can be found on all the major podcast apps. The complete show archive is here.

John Ray, Host of The Price and Value Journey

John Ray is the host of The Price and Value Journey.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®: LinkedIn | Twitter | Facebook | Instagram

How to Respond to the “What are Your Rates?” Question

May 4, 2022 by John Ray

North Fulton Studio

How to Respond to the "What are Your Rates?" Question

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How to Respond to the “What are Your Rates?” Question

It happens all the time: prospects who start a conversation with the “what are your rates?” question. In this episode we offer several suggestions for handling this question.

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. So, how do you respond to the what-are-your-rates question? I received a form of this question from a B2B services professional in an email. And in her email she said, “I was thinking over some of the things you said to me at lunch. And you said that if someone asked you about your price right away on the phone that maybe they’ve contacted you because they’ve seen you on the internet somewhere, you mentioned you may not be a good fit.” Well, she continued, “Someone came up to me at a networking event, and introduced themselves, and asked right away what I charge. I know she isn’t a good fit for a few reasons, but I just said similar to what you told me, something to the effect of it really depends on what you need or want and we need to have a conversation.” “What would you have said?” she asked, “in that situation.”

So, first of all, I told her, “You did the right thing. Your gut on this stuff is usually right.” For folks I meet face to face, I just say, “I don’t know what I would charge. We need to have a conversation about your situation and needs, and see if we are a good fit because I’m not a good fit for everyone.” If the client is willing to take me up on a conversation, then I’ll take the meeting, even if I really don’t think that they are a fit. Not everyone would do that, but I will.

First, you never know until you have the conversation, right? They may surprise you. And second, if they are taking me up on my terms, which is having a conversation about their needs, then I need to fulfill my part. I’ll schedule them at some time and place that’s easy for both of us, so that if it’s not a fit, as I anticipate, then I’ve not lost a lot of time.

I told her that her gut is usually right about her judgment, but that’s not always the case. We all make mistakes. Further, even if our initial judgments are confirmed, there’s nothing lost in being kind and meeting with someone who is just starting out in their business, for example, but can’t yet afford your services. This meeting may be an investment in a future client. It could be an investment in someone who will refer you to another client, which just happened for me. It could be that you are just taking a few minutes to be kind, to listen, and to offer a few helpful suggestions to a new business owner. For me, that’s part of giving back.

Now, I also say that no one client of mine has the same price because every client is completely unique with their own needs. And this reinforces the need for a conversation. If it’s someone who’s calling me on the phone, I thank them for calling. And I say, “First, how did you get my name? If you’ve been referred by someone, I want to thank that person.” If they’re a referral, then I need to engage with them and stay on that. We need to have a conversation track with them. Now, if they got my name off the Internet somewhere and their first question is about my rates, my experience is been that it’s largely a waste of time for me to spend much time on someone who finds me that way and calls with a first question of, “What are your rates?” If that’s what that client leads with, then my response is something like, “I don’t know what I would charge until we have a conversation about your needs. First, we need to determine whether I’m even a good fit. And if I’m not, I’ll try to help you by referring you to someone else. If we are a fit, then we can discuss different options. I can offer to meet your needs.”

Now, if the client insists on getting my “rates,” I’ll let them know that they seem to be more interested in a transaction than a relationship. And I invest my time and energy in relationships with clients, clients that are interested in relationships. It’s important for us as B2B professionals to focus on prospects who are willing to discuss their needs upfront and in some detail. You’ll end up with clients whose needs you’re meeting and who are a good fit for you. You’ll also end up working for a price which is appropriate for the value you are providing.

I’m John Ray on the Price and Value Journey. Past episodes of this series can be found on your favorite podcast app. We’d be grateful if you would subscribe to the show on your favorite podcast app. And if you’d like to give me feedback or to connect with me with a note, you can send that to John@JohnRay.co. Thank you for joining me.

About The Price and Value Journey

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.