TGIF! I am the author of the SMB Consulting Best Practices book and I like to hold vitual book readings!
Price is the great economic rationing device. Set it too low and your overwhelmed with business and perhaps not enjoying as high of return on investment (ROI) as you might have. Set it too high and you’re dance card isn’t full and you might have to endure the public shame of coming down on your prices. Ouch! Few decisions you make as an SMB consultant are more important than pricing. Let’s tread carefully here.
Never say no!
The great thing about traveling around and providing workshops is that you meet some great people. Often, the acquaintances provide insights you didn’t previously possess. Such was the case recently in Bellevue, Washington, when a member of the audience, a long-time technology consultant, shared with me how he handles pricing. His theory and practice is to never say no to a client, but simply raise his bill rate. He reports he originally undertook this practice to ward off undesirable engagements and annoying clients. The funny thing is, says he, many prospects then stepped up to the table and paid his inflated rates. This set a new baseline for his overall billable rate schedule by allowing him to “test the market” without huge consequences. It also allowed him to earn an exceptional ROI if he indeed had to work under unpleasant conditions. His attitude for that type of work? “At least I get paid well for it!”
Harry Brelsford, CEO at SMB Nation
MBA, MCSE, CNE, CLSE, CNP, MCP, MCT, SBSC (Microsoft Small Business Specialist)