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“I Can Do That” and the Mental Math of Outsourcing

December 8, 2022 by John Ray

“I Can Do That” and the Mental Math of Outsourcing
North Fulton Studio
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“I Can Do That” and the Mental Math of Outsourcing“I Can Do That” and the Mental Math of Outsourcing

The mental math of outsourcing can work for you and your practice, or work against you if you say “I can do that” too many times.

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

 

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 1,600 podcast episodes.

Coming in 2023:  A New Book!

John’s working on a book which will be released in 2023. The book covers topics like value and adopting a mindset of value, pricing your services more effectively, proposals, and essential elements of growing your business. For more information, connect with John below.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: benefits of outsourcing, John Ray, outsourcing, Price and Value Journey, pricing, professional services, professional services providers, solopreneurs, value, value pricing

Razor Blades, Discounts, and Your Practice

November 29, 2022 by John Ray

Razor Blades, Discounts, and Your Practice
North Fulton Studio
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Razor Blades, Discounts, and Your PracticeRazor Blades, Discounts, and Your Practice

Even a single human hair can chip a razor blade, and that first chip leads to much greater damage as the blade is used. This imagery is a superb metaphor for how pricing discounts in a professional services practice can dull the business.

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

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 1,600 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: discounting, discounts, John Ray, Price and Value Journey, pricing, professional services, professional services providers, razor blades, solopreneurs, value, value pricing

Gratitude as a Business Strategy

November 22, 2022 by John Ray

Gratitude as a Business Strategy
North Fulton Studio
Gratitude as a Business Strategy
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Gratitude as a Business Strategy

Gratitude as a Business Strategy

The benefits of actively practiced gratitude for an individual’s health and well-being are widely documented. What would happen in your business if you decided to make gratitude an actively practiced piece of your business strategy?

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. The science behind the beneficial effects of gratitude gets deeper and more compelling as more research is published and updated. Most of the studies which have been published on the effects of gratitude support an association between gratitude and an individual’s well-being.

John Ray: [00:00:25] The head of the Division of Biologic Psychology at Duke University Medical Center says that, if gratitude were a drug, “it would be the world’s best selling product with a health maintenance indication for every major organ system.” The benefits, it seems, span an individual’s physical, psychological, and social wellbeing.

John Ray: [00:00:49] According to Robert Emmons, a leading researcher in gratitude studies, people who practice gratitude consistently report benefits across the physical, psychological, and social spectrums.

John Ray: [00:01:04] Well, let’s expand that idea beyond us as individuals. What would your business look like if you made gratitude part of your everyday operating strategy? What would happen if the conscious practice of gratitude was as natural a part of your business as opening the doors every day, or checking email, or bouncing the cash drawer, or making payroll?

John Ray: [00:01:29] I’m not just talking about sending thank you notes to clients, although that’s probably a good baseline to start if you’re not doing that. But gratitude is more than just thank you notes or client gifts. I’m referring to cultivating an attitude of thankfulness, which is deep in your core as a business owner.

John Ray: [00:01:52] Maybe it’s writing a thank you note to someone who has helped you with a suggestion they’ve made, one which seemed insignificant to them at the time. It could be keeping a gratitude journal for your business, making notes about people and events which have made an impact on you and your business. Maybe it’s spending daily time and conscious reflection or meditation on something you’ve learned that day. Or maybe an event you attended from which you gained something that helped you in your business. It could involve stopping and pausing in a moment of thankfulness before you turn the key in the door to open up in the morning or before you turn on your computer.

John Ray: [00:02:37] Some time ago, I received a note from a business friend of mine who puts this principle into practice in quite a beautiful way. She writes, “This is a busy, busy time. I am exhausted, but we are very grateful. We have had long days and worked all week, including today, Sunday. I appreciate you so much. You were the first one that welcomed me, made me feel at home, and started helping me right away. And for that, I am forever grateful.” Wow, what a note to receive.

John Ray: [00:03:12] But most importantly, this business owner really gets it. This note wasn’t written to me to get my business. Although I’m a client of hers, I’m a tiny fraction of the sales of her business. This note was written from a deep sense of gratitude for life enjoyed, even the hectic, tiring life of a small business owner. Despite the exhaustion, the headaches, dealing with employees who flake out, and having days where everything seems to just go wrong, this individual is centered enough to express an attitude of joy and meaning.

John Ray: [00:03:54] I encourage you, and myself, as I speak these words – I’m more a student than a teacher, for sure – I encourage all of us to use this Thanksgiving season to reflect on adopting a practice of gratitude not only in our personal lives, but in the life of your business, as a strategy in your business. You might tap into a deeper vein of satisfaction with your business than you ever thought possible. Happy Thanksgiving.

John Ray: [00:04:27] 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 send me a note directly, feel free, 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 1,600 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: business strategy, gratitude, ohn Ray, Price and Value Journey, pricing, professional services, professional services providers, solopreneurs, thankfulness, value, value pricing

Pricing and Self-Limiting Beliefs

October 31, 2022 by John Ray

Pricing and Self-Limiting Beliefs
North Fulton Studio
Pricing and Self-Limiting Beliefs
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Pricing and Self-Limiting Beliefs

Pricing and Self-Limiting Beliefs

One of the biggest problems solo and small firm professional services providers have with their pricing is self-limiting beliefs. What’s the solution? Value pricing.

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. In my work, I find that the problems low and small firm professional services providers have with their pricing often starts with the narratives that they carry around internally.

John Ray: [00:00:18] Pricing for services providers is a very personal thing. When the factory floor is essentially between the years, it gets personal. You’re not pricing a can of green beans. You’re pricing yourself whether you’re a web designer, an accountant, or a consultant. Pricing yourself by pricing the service you produce draws that more emotions than just what’s on the surface. Services providers can be affected by self-limiting beliefs that are a result of the narratives which have been poured into their head, sometimes all the way back to childhood.

John Ray: [00:00:56] Here’s one example, “I’m not good enough.” Maybe you heard that from a parent or a teacher or some other adult authority figure in your childhood, and it’s shouting at you today. Maybe you’re even hearing it today from a spouse or some other person in your life that you listen to more than you should. You’ve internalized that messaging and it feels like it’s deep in your bones, because it is.

John Ray: [00:01:25] Then, while you have enough confidence to go ahead and start your business, you do so with the notion that you need to discount to attract clients. You’ll be able to put up your prices later, you think, when you’re “established”. Well, that strategy doesn’t work out the way you thought it would, and the business stalls out. You end up attracting clients who aren’t the best fit and you don’t know what to do. Maybe it gets to the point where you start blaming yourself and reinforcing the negative self-talk that was there to begin with.

John Ray: [00:02:02] So, what’s the solution? Well, I think it starts with value pricing. Value pricing is setting your price to capture just a small piece of the value that clients recognize for themselves and are therefore willing to pay for. Understand that value pricing has nothing to do with what you believe your service is worth. It’s not about you or what you consciously or subconsciously think. It’s about the client and their perception of the value of the outcomes you deliver.

John Ray: [00:02:34] One way to think about value pricing is that it allows you to evade and cancel out whatever self-talk hold you back. Shifting instead toward a client-based perspective on the worth of your services. That shift takes you from what you do to what the client needs, hopes, dreams about for themselves in their business and their family.

John Ray: [00:03:01] And then, if you and that client work together and bring about that lasting change, what’s the value of that transformation? When you price to receive just a small piece of that perceived value the client has visualized and agreed to, then you’ll invariably end up with better pricing for your service’s business. And your confidence changes because you’ve shifted toward allowing clients to determine your value instead of the voices in your head.

John Ray: [00:03:33] I’m John Ray on The Price and Value Journey. Past episodes of this series can be found at pricevaluejourney.com. And I’d be honored if you’d subscribe to the show, you can find it on all the major podcast platforms. You can also 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, 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 1,600 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: John Ray, overcoming self-limiting beliefs, Price and Value Journey, pricing, professional services, professional services providers, self-limiting beliefs, solopreneurs, value, value pricing

The Problem with Value Propositions

October 25, 2022 by John Ray

The Problem with Value Propositions
North Fulton Studio
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The Problem with Value Propositions

The Problem with Value Propositions

Value propositions can be helpful in your business if you craft them correctly, and there’s only one right way. It involves talking to clients . . . repeatedly.

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 term value proposition is generally credited to two McKinsey consultants, Michael J. Lanning and Edward G. Michaels. And they used the term in a 1988 paper entitled A Business is a Valued Delivery System. In the paper summary, Lanning and Michaels wrote, “A business is a system for superior value delivery. Choosing a superior value proposition and echoing it through the business system by providing it and communicating it. And managing this delivery is top management’s primary job.”

John Ray: [00:00:44] Well, how do you come up with a superior value proposition? Well, you talk to a customer, rinse, and repeat. And just keep doing that. If your value proposition is the product of sitting in a room with a whiteboard without any client interaction, all you have is your own opinion. Your value proposition is what you think, not what you know, from actual conversations that you could have had. Lots of money has been lost in business by not understanding the difference between think and know.

John Ray: [00:01:23] In their paper, Lanning and Michaels illustrate the point by pointing to IBM, who, at that time, dominated the business computer market. IBM did so with products generally deemed less advanced than the competition, yet IBM charged premium prices. Competitors explained this advantage as “superior marketing” coupled with a slick sales force who could talk customers into buying inferior products.

John Ray: [00:01:53] What Lanning and Michaels point out in their paper is that IBM was meeting the needs of customers at that time who valued reliability over the latest technology. IBM understood what clients valued and what they were willing to pay for that value. IBM understood that the value and a value proposition is the client perception of value. It wasn’t their perception of value.

John Ray: [00:02:22] If you simply internalize and run your practice based on the following two principles, you’ll not only have an effective value proposition, but you’ll be able to work through a lot of problems, including your pricing in your practice. Those two principles are (1) clients determine value, (2) a business is a value delivery system.

John Ray: [00:02:49] I’m John Ray on The Price and Value Journey. Past episodes of the series can be found at pricevaluejourney.com or on your favorite podcast app. And I’d be honored if you subscribe, if you haven’t already. And 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, 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 1,600 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: clients, customers, John Ray, Price and Value Journey, pricing, professional services, professional services providers, solopreneurs, value, value pricing, value proposition

Planning for a Year-End Price Increase

September 19, 2022 by John Ray

Planning for a Year-End Price Increase

Planning for a Year-End Price Increase

While planning a year-end price increase is great, tending to your pricing shouldn’t be a once-a-year activity if you’re a professional services provider.

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. Planning for a year-end price increase. As I record this episode, we’re a couple of weeks into the fourth quarter of the year, and it’s time a lot of folks plan for pricing increases and adjustments that you need to make in your practice starting in the new year, right?

John Ray: [00:00:25] Well, wrong. Well, actually, more precisely, there’s a mixed answer. Yes, you need to plan a price increase. Don’t be that business owner who delays a price increase for so long that the frustration builds to a boil, and then one day, you snap and jack up prices with no forethought.

John Ray: [00:00:47] At the same time, pricing should always be a regular part of the diagnostics and fine tuning you perform on your business throughout the year. That’s particularly true for professional services providers who’ve accepted a wide variety of clients over time, often at various price points and terms. In those cases, it’s easy to lose track of relationships where it’s noticeably clear you need to put their pricing in line, both with the value those clients recognize in your work as well as the current reality of your practice.

John Ray: [00:01:24] Now, there are only three ways to increase revenue in your business. You can sell more of your services to existing clients, you can add new clients, or you can raise your prices. You’re constantly evaluating your success at the first two, selling more services to existing clients or adding clients. That’s business development, sales, and marketing. But how much regular attention are you giving to your pricing?

John Ray: [00:01:54] For most solo and small professional services practitioners I’ve encountered, they spend 90 percent or more of their time on business development, sales, and marketing. And pricing is a can they keep kicking on down the road.

John Ray: [00:02:10] Here’s just one of the problems with that way of managing a practice. The most immediate way to change the trajectory of your practice profitability is to adjust your pricing. This statement isn’t up for debate. It’s an accounting fact. Adjusting your pricing has a much more immediate impact than any changes you can make in your business development, sales, or marketing. The effect of those pricing changes is also more predictable. So, what changes do you need to make in the regular diagnostics you perform on your business to better incorporate pricing in that mix?

John Ray: [00:02:51] I’m John Ray on The Price and Value Journey. Past episodes of this series can be found at pricevaluejourney.com. I’d be honored if you’d subscribe on your favorite podcast app. And if you’d like to connect with me directly, 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, 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 1,500 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: John Ray, planning, Price and Value Journey, price increase, pricing, professional services, professional services providers, solopreneurs, value, value pricing

Corporate Buyers Can Be Driven By Emotion, Too

September 1, 2022 by John Ray

Corporate Buyers Can Be Driven by Emotion, Too
North Fulton Studio
Corporate Buyers Can Be Driven By Emotion, Too
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Corporate Buyers Can Be Driven by Emotion, Too

Corporate Buyers Can Be Driven By Emotion, Too

You might assume, if you’re a consultant or some other professional services provider looking to do business with a major corporation, that that corporate buyers make decisions based on “logic,” not emotion. You might assume that the decision always comes down to price. If that’s what you assume, then listen to this story behind the phrase “nobody ever got fired for hiring IBM.”

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. Years ago, there were two major mainframe computer manufacturers. Those were in the days when mainframe computers were a big deal. IBM and Amdahl were the two players in the market. Of course, IBM was the market leader by far and away. And Amdahl was the upstart competitor.

John Ray: [00:00:28] Well, in those days there was a mantra among chief information officers of major companies that said, No one ever got fired for hiring IBM. You see, even if as a CIO, you believe that an Amdahl mainframe offered faster performance at a lower cost than the IBM equivalent. As a CIO, you were reluctant to propose a multimillion dollar corporate commitment to what was regarded as the upstart.

John Ray: [00:01:00] A choice for IBM was the safe, understandable decision. If you advocated Amdahl, on the other hand, your own decision making ability might be questioned. If something went seriously wrong, that Amdahl decision you’d promoted might necessitate an updated resume.

John Ray: [00:01:22] Decisions in favor of Big Blue were routinely made in corporate America in those days, even though IBM was invariably the more expensive choice. Why then, professional services provider, would you assume that enterprise buyers of your services are “more logical” than individuals and that with big companies it’s all about “price”?

John Ray: [00:01:48] I’ve heard this one more than a few times from professional services providers, like consultants, who work with major corporations. Corporate buying decisions, folks, are no different in this regard than choices of individuals. They are driven by both tangible and intangible considerations. In the IBM/Amdahl case, the intangibles of fear and risk avoidance routinely overcame “logical” price considerations.

John Ray: [00:02:22] For you as a professional services provider, it’s not a question of right or wrong or that big companies are dumb. Understand that uncertainty and fear are powerful emotions, which are invariably a factor in every buying decision, whether individual or corporate.

John Ray: [00:02:42] The question you need to answer objectively is whether you’re a safe choice or a risky choice. Is what you offer that buyer one that’s easier to justify if something goes wrong later? Is there a smaller downside? Do you help that buyer avoid or minimize risk? If so, you’re offering value. And that value, as IBM routinely proved in the salad days of mainframes, is worth a premium price.

John Ray: [00:03:16] I’m John Ray on The Price and Value Journey. Past episodes of this series can be found at pricevaluejourney.com. And feel free to email me if you’d like, 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 1,500 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: Amdahl, corporate buyers, emotions, IBM, John Ray, mainframe computers, Price and Value Journey, pricing, professional services, professional services providers, solopreneurs, value, value pricing

Navigating A Recession

August 31, 2022 by John Ray

Navigating A Recession
North Fulton Studio
Navigating A Recession
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Navigating A Recession

Navigating A Recession

It’s a mistake to do business planning based on the predictions of economists. A better approach to navigating a recession, or any other economic environment for that matter, is to stay close enough to your clients to understand the value they perceive in your service. More in this episode.

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. Navigating a recession or any other major economic event, for that matter, there’s lots of talk right now about recession and some conflicting views about whether we’re in one. Paul Samuelson, a Nobel Prize winner in economics, wrote that the stock market had predicted nine of the past five recessions. What he failed to point out is that economists have a similar track record, if not worse.

John Ray: [00:00:34] Asking whether we’re in a recession to determine what business moves to make in our individual businesses is the wrong question. The better consideration each of us must weigh is whether our clients perceive value which is in excess of the price they pay us for our services. When there’s a major economic shift, business owners face what you might call a value decision point on everything that they buy.

John Ray: [00:01:02] They’ll reassess their perception of the value they think they are receiving from the goods and services they purchase and compare that new perceived value to the price they’re paying. These value decision points come repeatedly over the life of a client relationship. Sometimes without us as service providers even knowing it’s happened.

John Ray: [00:01:26] Value decision points most certainly occur in a down cycle of business conditions, but they occur across the spectrum of macroeconomic events, whether it’s a recession, an inflationary period, a pandemic, or when the pendulum swings back toward prosperity. Sometimes value decision points result in changes to client perception of value, which are very minor. Other times, of course, they can be momentous, or, often, they are somewhere in between. Shifts at the micro level bring business owners to a value decision point as well.

John Ray: [00:02:04] One example is when you announce a price increase. The business owner or manager will naturally assess whether the value they believe they are receiving from the professional relationship they have with you still exceeds the new higher price. Another example is when there’s a service offering change, such as a change in personnel that are doing the work. It could also be that the micro level change has nothing to do with you, such as when there’s been a major internal blow to the business.

John Ray: [00:02:36] If you’re a solopreneur or a small firm professional services firm owner, the question is not whether we’re in a recession. The question for you is whether your client’s perception of the value they receive from your firm remains more than what you’re being paid. And that’s always the question in all economic cycles.

John Ray: [00:03:00] I’m John Ray on The Price and Value Journey. Past episodes of this series can be found at pricevaluejourney.com. If you’d like to connect with me directly with an email, 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, 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 1,500 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: economic recession, John Ray, pandemic, Price and Value Journey, pricing, professional services, professional services providers, recession, solopreneurs, value, value pricing

Raising Prices is Not Just About Making More Money

August 30, 2022 by John Ray

Raising Prices is Not Just About Making More Money
North Fulton Studio
Raising Prices is Not Just About Making More Money
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Raising Prices is Not Just About Making More Money

Raising Prices is Not Just About Making More Money

No, contrary to what some might think, raising prices is not just about making more money. For small and medium-sized business owners, better pricing allows for reinvestment in the business which benefits employees and clients.

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. Raising prices is not just about making more money. Occasionally, I run into people who, in a bad attempt at humor, tell me that I’m contributing to the inflation problem because of my encouragement to professional services firm owners to tend to their pricing. I also get a few who, in a backhanded way, accused me of giving license to business owners to be “greedy”. That’s a big load of buffalo bagels, folks, and that’s as kind as I can be about it.

John Ray: [00:00:36] What the uninformed don’t realize, or sometimes they don’t choose to understand, is that arguably the biggest challenge small business owners face, and particularly professional services providers who are pricing what’s between their ears, is adequately pricing their product or service. Because of this struggle, the entire business suffers. Because of inadequate pricing, employees don’t get the raises they should receive leading to unnecessary turnover.

John Ray: [00:01:09] The business itself doesn’t get the cash flow needed for reinvestment to improve customer experience or add client benefits. There’s not enough financial flexibility to allow the business owner to work on the business instead of in it. Maybe, most important, the business owner suffers personally. They experience a high stress level, which, untended, leads to burnout, problems at home, and worse.

John Ray: [00:01:38] Small business owners are not like a corporate behemoth squeezing out every little penny possible, such as the one with a website in which you’ll go check out an item, come back a few minutes later to buy, and you’ll find the price has gone up a few dollars because your online behavior that they’re tracking surreptitiously predicts that you’re ready to buy.

John Ray: [00:01:59] I talked to one of my clients recently about this subject. He said something that I love, that one of the benefits of better pricing is that you fall in love with the business all over again. I just love that. He went on to talk about how the stress of business ownership gets lowered. You create a better life and you get time back. We talked about how time is a vanishing asset which can never be replaced.

John Ray: [00:02:28] In reflecting on our conversation later, I also thought about giving back. Small business owners overall are extraordinarily generous. They come at life wanting to help people and solve their problems. This characteristic extends over to their community involvement. They love being able to give back. Many owners I know put funding a cause important to them high on the list of reasons for leaving corporate to start their own business.

John Ray: [00:02:58] Sure, there are some bad actors among small business owners, but I find they’re the exception. The preponderance of small business owners I know, if anything, are too selfless. And that’s one reason I’m passionate about pricing.

John Ray: [00:03:15] I’m John Ray on The Price and Value Journey. Past episodes of the series can be found at pricevaluejourney.com. And if you’d like to send me a note, 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, 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 1,500 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: John Ray, Price and Value Journey, price increase, pricing, professional services, professional services providers, raising prices, solopreneurs, value, value pricing

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