value pricing Archives - Page 7 of 8

The Only Three Ways to Increase Revenue

June 2, 2022 by John Ray

North Fulton Studio

The Only Three Ways to Increase Revenue

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The Only Three Ways to Increase Revenue

There are only three ways to increase revenue. Most professional services providers focus on just two of those ways, even though the returns on those methods are smaller and less certain.

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. There are only three ways you can increase your revenue. Only three. You can sell more of your stuff to new clients, and that’s more volume. You can sell more of your stuff to existing clients, that’s also more volume. Or you can raise your prices.

John Ray: [00:00:23] Now, those are your choices if you want to increase your revenue. That’s it. So, how much of your time, money, resources, and mindshare are you giving to each of these three? Two of them have to do with more volume. One of them, of course, has to do with your price.

John Ray: [00:00:44] My experience with most solo and small professional services firms is that they spend a disproportionate amount of resources on the first two, the volume choices, but give extraordinarily little regular attention to what opportunity they might have to modify prices for the better.

John Ray: [00:01:06] This choice of resource allocation is illogical. Acquiring new clients requires expenditure of marketing and sales resources, and there’s a delay in the return received on that investment, and that’s assuming there is a return. Price changes, on the other hand, have a nearly instantaneous impact on the bottom line. The effort needed to implement them is invariably much less than a fresh marketing or sales initiative. Sometimes the cost of implementing a price increase is near zero.

John Ray: [00:01:44] So, think about your resource allocation around growing your revenue. What is your allocation? And is it too heavily weighted in one direction?

John Ray: [00:01:56] 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, if you’re not already subscribed. And I would be honored if you would subscribe. If you’d like to send me questions or comments, I’d love to hear from you, john@johnray.co is how you can reach me. 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

“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 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

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

Pricing For a Professional Speaker

April 22, 2022 by John Ray

North Fulton Studio

Pricing For a Professional Speaker

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Pricing for a Professional Speaker

A story on value pricing for a professional speaker: once he ignored the advice he received about “pricing himself out of the market” and priced relative to the value he offered, it completely changed the trajectory of his 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. I’m John Ray on the Price and Value Journey.

John Ray: [00:00:03] Kyle Maynard was born with a rare condition called congenital amputation, which left him with arms that end at his elbows and legs that end near his knees. While those circumstances might seem debilitating, Kyle has lived an extraordinarily full life as an entrepreneur, bestselling author, and award-winning extreme athlete. He was the first man to bear-crawl to the top of Mount Kilimanjaro that’s 19,340 feet, the highest mountain in Africa, and to the summit of Argentina’s Mt. Aconcagua, 22,838 feet, the highest peak in both the western and southern hemispheres. Now, I barely made it to the summit of Mount Rainier that’s 14,400 feet on two legs and two feet, and this man bear-crawled to the summits of the highest peaks on two different continents, extraordinary isn’t even an adequate word.

John Ray: [00:01:07] So, Kyle is also a keynote speaker. So, let’s imagine for a moment that I’m booking him for a conference I’m running. After reading Kyle’s story, my thought is most likely to be something along the lines of, wow, this man will light up our group big time. I can hear the robust applause after Kyle’s speech in my head. I can imagine the enthusiastic reactions I’ll read through both comments and after conference surveys that I’ll get for this speaker that I booked.

John Ray: [00:01:39] Now, all those thoughts represent perceived value, and that perceived value is quite high, wouldn’t you agree? As a professional services provider like Kyle, when you price your services, you basically have two choices. One option involves listening to the voices in your head, or those of maybe well-meaning friends or colleagues on how you need to keep your fees low, because “others don’t charge as much”, or you don’t want to price yourself out of range, whatever that means, or you can ignore those voices as Kyle has, and price relative to the value, both perceived and tangible value now that you deliver.

John Ray: [00:02:26] Kyle was profiled in the book Tribe of Mentors by Tim Ferriss, and here’s what Kyle had to say about the worst advice he’d ever received. He says, “The worst advice I’ve ever been given was to not increase the fee I charge to give a keynote speech. I was told I would price myself out of the market. I didn’t have enough recent media coverage to compete against well-known speakers, blah, blah, blah. I decided to raise my price anyway, incrementally at first, and then I doubled it. Now, I have twice as many inquiries and people even negotiate with me less. I wish I had done it earlier. It’s given me much more freedom. As I write this, I’m spending a week on a yacht in Croatia and the rest of the summer traveling through Europe. Time is the only thing we can’t get back. Hopefully, by the time you read this, I’ll be on my way to doubling it again.”

John Ray: [00:03:28] Now, you don’t have to have crawled up Mount Kilimanjaro to price adequately. Whatever your superpower, have a value conversation, determine the tangible and perceived value that you’re offering to that client sitting in front of you, and then price to receive a slice of the value that you deliver.

John Ray: [00:03:49] I’m John Ray on the Price and Value Journey. You can find past episodes of this series at pricevaluejourney.com. If you’d like to send a note directly, you can send one 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.

John Ray, Host of The Price and Value Journey

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

John is the host of North Fulton Business Radio, Minneapolis-St. Paul Business Radio, Nashville Business Radio, Alpharetta Tech Talk, and Business Leaders Radio. house shows which feature a wide range of business leaders and companies. John has hosted and/or produced over 1,300 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®: LinkedIn | Twitter | Facebook | Instagram

“What I’m Worth”

January 25, 2022 by John Ray

North Fulton Studio

"What I'm Worth"

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“What I’m Worth”

“I should get paid what I’m worth.” For professional services providers, what we need or think we deserve is irrelevant. Here’s a story that illustrates the way we achieve better pricing, and it involves a value conversation. The Price and Value Journey is presented by John Ray and produced by the North Fulton studio of Business RadioX®.

TRANSCRIPT

John Ray: [00:00:00] And hello again. I’m John Ray on the Price and Value Journey. “What I’m worth. I should get paid what I’m worth.” I hear this sentiment and variations on it from professional services providers whom I speak to about their pricing. What I’m worth is dangerous language for a B2B services provider. You see, what I’m worth in isolation can easily get turned into what I need or what I deserve. At an extreme, what I’m worth can justify taking advantage of people.

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

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

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

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

About The Price and Value Journey

The title of this show describes the journey all professional services providers are on: building a services practice by seeking to convince the world of the value we offer, helping clients achieve the outcomes they desire, and trying to do all that at pricing which reflects the value we deliver.

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.

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.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®: LinkedIn | Twitter | Facebook | Instagram

When “Know, Like, and Trust” Doesn’t Matter

January 22, 2022 by John Ray

North Fulton Studio

When "Know, Like, and Trust" Doesn't Matter

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When “Know, Like, and Trust” Doesn’t Matter

The old cliché about how “people do business with people they know, like, and trust” doesn’t fully explain why clients buy or define their willingness to pay. 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] Hi. I’m John Ray on The Price and Value Journey. When know, like, and trust doesn’t matter.

John Ray: [00:00:07] A neighbor of mine just had a new standby whole home generator installed for his home, replacing an older unit. I was surprised to see this installation for several reasons. To begin with, home standby generators aren’t a common feature of homes in my part of the country. I don’t know anyone else in our neighborhood who owns one. Nationwide, it’s estimated that less than three percent of all U.S. households have a standby electric generator installed.

John Ray: [00:00:40] Further, by all outward appearances, this man would not be a great prospect for a whole home generator salesperson. He’s now retired and I know that he and his wife have considered selling and downsizing, and generators of the size he bought stay with the home. In addition, he’s got a reputation for being cheap, one he gets good naturedly teased about.

John Ray: [00:01:08] Generators aren’t one of those home improvement features which generate a positive return when the house is sold. So, the idea of this thrifty minded guy buying a generator, which costs somewhere between $5,000 and $10,000 depending on the size of the unit, was eyebrow raising for me.

John Ray: [00:01:28] If you make your living selling whole home generators, you might look at this guy and think he’s the lowest likely to buy prospect. You would have been wrong. Maybe my neighbor’s background in the insurance industry makes him risk averse. Maybe he’s had a previous bad experience with an extended power outage. Maybe a recent fall makes him value knowing lights will always be available, so he’ll always be able to see where he’s going. Whatever the reason for his purchase, my neighbor had outcomes in his mind he wanted to achieve. Outcomes not apparent by outward appearances. He’s willing to write a significant check for those outcomes, all visible evidence to the contrary.

John Ray: [00:02:18] For me, I have zero interest in this product. I’m willing to live with the risk that the power may occasionally go out and I will have to go pull out the candles. If you’re the whole home generator salesperson, it doesn’t matter how much I might like and trust you. This is where the old cliché about how people do business with people they know, like, and trust comes up short. Know who I can trust is vital, of course. Yet a customer must be motivated to buy.

John Ray: [00:02:52] As with my neighbor, those motives are not immediately apparent. The only way you would have known of my neighbor’s motivations is to have a value conversation. It’s a dialogue focused on the desires, hopes, dreams, taste, and problems of that client sitting in front of you. It’s their values instead of the features and benefits of whatever you are selling.

John Ray: [00:03:20] In his book, The Secret of Selling Anything, Harry Browne writes, “Everyone is already motivated. The only question is by what.” Your job is to find out what it is that motivates your prospect. Don’t confuse your products with motivations. No one ever buys a product. He buys what the product will accomplish. He buys because there’s something he wants for his life. Your job is to find out what that something is.

John Ray: [00:03:53] As a professional services provider, if you don’t have the patience to have a value conversation, then you don’t understand the client who’s sitting in front of you. You may think you do, but what you think you know may simply be your preconceptions. And if you don’t understand the motivations driving that client, then your pricing will be wrong, guaranteed.

John Ray: [00:04:19] I’m John Ray on The Price and Value Journey. If you’d like to connect with me, go to johnray.co or you can email me directly, john@johnray.co.

About The Price and Value Journey

The title of this show describes the journey all professional services providers are on: building a services practice by seeking to convince the world of the value we offer, helping clients achieve the outcomes they desire, and trying to do all that at pricing which reflects the value we deliver.

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

Confidence and Silencing the Voice in Your Head

January 21, 2022 by John Ray

North Fulton Studio

Confidence and Silencing the Voice in Your Head

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Confidence and Silencing the Voice in Your Head

The biggest problem most professionals have with their pricing starts with a lack of confidence. The solution to this problem starts with a change in perspective. The Price and Value Journey is presented by John Ray and produced by the North Fulton studio of Business RadioX®.

TRANSCRIPT

John Ray: [00:00:00] And hello again. I’m John Ray on The Price and Value Journey. Let’s talk about confidence and silencing the voice in your head. What’s the biggest problem most professional services providers have with their pricing? It’s lack of confidence. Hands down, no contest.

John Ray: [00:00:20] Most professional services providers I’ve worked with are secure in the notion that they can solve client problems. That’s usually not the issue. The lack of confidence manifests itself in that smirking little gremlin who stands on your shoulder while you’re in conversation with a possible client.

John Ray: [00:00:40] That prospect asks you about your pricing, and the gremlin starts whispering in your ear, “They’re not going to go for it. They’ll tell you you’re too expensive. You need this business, don’t screw it up now. If you don’t cut the price you came up with, you’ll lose the business.” You hear comments like this in your head and then you fold like the proverbial cheap suit. Whatever pricing you came up with, you backtrack. You can almost hear the cackle of the gremlin when you do.

John Ray: [00:01:17] I recently coached a client who hadn’t raised prices since she started her consulting practice. She priced by the hour – now, that’s another problem altogether. I asked her how she arrived at her hourly price. “It just felt right,” she said. “It felt right to who?” I asked. “Well, I didn’t think I could ask for any more.” Well, those responses from her revealed the problem. The focus is on her as the services provider.

John Ray: [00:01:50] Lack of confidence can be solved by a singular focus on the client. What’s the problem that the client has that you’re solving? How will their life change for the better because of your intervention? What’s the value of the solutions you’ve discussed? This perspective and the work which goes into establishing answers to such questions allows you to value price, to price based on client understanding of the value you deliver.

John Ray: [00:02:25] If there’s a question about how you came up with the price, the answer is centered around a perfectly appropriate answer, your pricing to capture just a little piece of the value your client receives. It’s fair to them. It’s understandable. And it’s a win-win for both sides.

John Ray: [00:02:42] Then, it’s not about you anymore. It’s not about the imposter syndrome or you thinking you’re not good enough. It’s not about your hourly rate or whether you deserve that amount. If you’re pricing conversation is grounded in the value you and the client have agreed the client will receive because of your work, you’ll be amazed at how much confidence you seem to have. And you’ll silence that smirking little gremlin.

John Ray: [00:03:13] I’m John Ray on The Price and Value Journey. If you’d like to connect with me directly, go to john@johnray.co or go to my website, johnray.co. Thanks again 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.

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 Red Flags of Inadequate Pricing

January 21, 2022 by John Ray

North Fulton Studio

The Red Flags of Inadequate Pricing

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The Red Flags of Inadequate Pricing

In a discovery call I had with a videographer, he revealed that his pricing was inadequate before he disclosed what his prices were. What are those “red flags?” Do any of them apply to your practice? The Price and Value Journey is presented by John Ray and produced by the North Fulton studio of Business RadioX®.

TRANSCRIPT

John Ray: [00:00:00] And hello again. I’m John Ray on The Price and Value Journey. Recently, I was on a discovery call with a videographer. This man had been in business for about five years, and he felt like he needed to make some major changes to his business if he was going to achieve the goals he had set for himself.

John Ray: [00:00:21] About 15 or 20 minutes into the conversation, I told him, “You know, I can tell your pricing is too low.” “How do you know that?” he asked. “I haven’t told you my prices yet.”

John Ray: [00:00:35] In no particular order, I responded, there are several reasons. First, you price by the hour. By definition, a professional services provider, like you, who prices by the hour is underpricing their services. Second, you tell me that all clients are paying the same price. The problem there is that not all clients have the same values. Different clients value your services differently. You’re probably going the extra mile for clients who don’t value that added care you’re giving them and you’re not charging for it.

John Ray: [00:01:10] Third, you’re not offering options. Options are a powerful way to tailor your services to your best fit clients who love what you accomplish for them, and they’re willing to pay you a good price for that. Fourth, you complain that you feel like you’re working too hard for too little money. For professional services providers, like you, that’s always a sign of a pricing problem.

John Ray: [00:01:38] Fifth, you seem to be taking on most projects which come your way. More prospects should be turning you down because of price. Finally, I said, you’re talking a lot about what and how you do what you do instead of the challenges clients have that you solve. What that tells me is that you’re not having solid value conversations with clients at all. A value conversation is the dialogue you must have with a prospective client to understand the difficulties you’ll be helping them overcome. If you understand how your solution to their problems moves the needle for their business, then you’ll be able to set better prices.

John Ray: [00:02:25] He paused and said, “You’re exactly right. I need to work on my pricing.” In about 15 minutes, this videographer had run through just about every red flag I look for when assessing the pricing of professional services providers. If any of these red flags are flying over your practice, you have a pricing problem and your pricing is too low.

John Ray: [00:02:53] I’m John Ray on The Price and Value Journey. If you’d like to know more, go to johnray.co or connect with me directly, email me, john@johnray.co.

About The Price and Value Journey

The title of this show describes the journey all professional services providers are on: building a services practice by seeking to convince the world of the value we offer, helping clients achieve the outcomes they desire, and trying to do all that at pricing which reflects the value we deliver.

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 | Instagra

Introduction to The Price and Value Journey

January 21, 2022 by John Ray

North Fulton Studio

Introduction to The Price and Value Journey

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Introduction to The Price and Value Journey

I’m launching a podcast, The Price and Value Journey, aimed at solopreneurs and small professional services firms.

As I mention in this introduction, the title of the show describes the journey all of us as B2B services providers are on: building a business 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’ve been following me for a while, you know that I have a particular passion around pricing, as I’m convinced that pricing is the biggest problem most professional services providers have. So this podcast will lean heavily into pricing-related issues.

You’ll hear short commentaries from me—think the audio version of the posts I make on LinkedIn, my blog, and elsewhere. I’ll also offer interviews with leaders in the professional services world.

The goal of this show is simple, to offer help in what all of us are looking for: doing work we enjoy, for clients we love working for, and making more money along the way.

Thanks in advance for your support and feedback! If you’d like to be in touch, contact me at one of the links below.

TRANSCRIPT

John Ray: [00:00:01] Hello everyone. I’m John Ray, and welcome to The Price and Value Journey. That’s the name of the show. But if you’re a solo or small professional services firm, this title describes the journey you’re already on, whether you call it that or not.

John Ray: [00:00:18] When we start out in our business or our practice, you see, we’re trying to demonstrate the knowledge and experience we bring to clients. We’re trying to convince prospective clients of the value that we offer. Over time, hopefully, we grow. Our practice grows beyond friends and family to the contacts and referrals that have come from our marketing efforts.

John Ray: [00:00:42] Now, at a certain point, the activity of our business gets more fevered. We may have to hire a virtual assistant or maybe a full-time staff person, maybe we take on a partner. As we grow, there’s a gap between where we thought we’d be when we started out and the reality on the ground of where we find ourselves.

John Ray: [00:01:05] Maybe we’re not happy with the results of our marketing. Maybe we know we need to work on our branding or our social media game. It could be we need to do better in sales, but we don’t know how to or we just don’t like the idea of selling. Maybe we’ve got too much client turnover. It could be that we’re quite busy or even overwhelmed. And it may be even worse than that, we may feel like we’re working too hard for too little money.

John Ray: [00:01:37] Now, if that’s the case, then we’ve got a pricing problem. Maybe we know our rates or pricing is too low, but we don’t know what to do about it. Or we’re scared, if we’re really honest with ourselves. Maybe we don’t even know that being overwhelmed or too busy in our practice really is a symptom of a bigger problem that our pricing is too low.

John Ray: [00:02:06] Pricing is a particular passion for me, because I’m convinced that pricing is the biggest problem most professional services providers have. It’s not getting new clients or servicing them. It’s getting the best clients at better pricing.

John Ray: [00:02:25] Now, here’s the deal. Changes in pricing are the fastest way to change, not only the bottom line of a business, but the mindset of you, the business owner. The changes we make in our pricing mean the difference between frustration and a newfound enthusiasm for our business. Better clients to work with and working smarter instead of harder. And, of course, a stronger bottom line.

John Ray: [00:02:58] That’s where this show, The Price and Value Journey, comes in. Wherever you are on your entrepreneurial journey, the idea of the show is to share ideas and commentary, which help make you more money doing the work you enjoy doing for clients you love working for. I’ll share, not only what I’ve learned myself, but what I continue to hear and learn from clients that I work with. I’ll give you short commentaries and ideas and extended interviews with leaders in the professional services world.

John Ray: [00:03:37] I’ve been in the world of professional services in some form or role for 40 years. I’ve got plenty of t-shirts on the mistakes I’ve made along the way. I have my own business advisory practice, part of which includes helping professional services practitioners with their pricing. I also have a separate but related business, helping business owners, mostly professional services providers, who want to do their own podcast.

John Ray: [00:04:07] I welcome your feedback on the show. If you’d like to connect with me directly, you can email me at john@johnray.co or just visit my website, johnray, J-O-H-N-R-A-Y, .co. I’m also very active on LinkedIn, so you can connect with me there. My LinkedIn handle is johnray1, that’s J-O-H-N-R-A-Y-1. Thanks for joining me on this journey, The Price and Value Journey.