Recently, there has been quite a body of discussion around regarding pricing, sales and marketing. Some people will never accept my philosophy in respect to pricing and value, nor do they have to.
But here is what I have observed in recent times, you draw your own conclusions and make your own decisions:
People are claiming that the current economic turmoil necessitates the reduction in prices to continue to sell your services. Really?
1. What have you done to build your business in the last three months?
2. Have you attended a professional association meeting for your own education?
3. Have you attended a function where your buyers attend so you could network?
4. Have you spoken at an industry meeting where your clients are members?
5. Have you submitted an article to publications that your clients would read?
6. Have you attended a seminar that will help your career?
Procrastination is a bigger threat than the economy to those of us in professional and personal services. Those of you who have hit the items on this list above or other comparable items have profited appreciably compared to those who haven't.
In July last year a Business Coach joined my
Mentor Program and we redesigned her proposal templates, reworked her sales approaches and increased her fees. In September she won a coaching contract with a client organisation for $82,000. This was the largest proposal she had ever written in her career. Another Member generated an additional $135,000 in revenues during October-December last year (2008) by heeding my advice and offering retainers to his existing clients.
She's displayed the preparedness to implement while she has listened; while he paid attention to advice even though it was outside of his normal comfort zone. Was price an issue? Yes, it was, to both of them. But once they had made the first sale to themselves, the next sale, which was to their clients wasn't nearly as difficult.
In the last quarter I've had people approach me and ask if they could attend some of my programs for free; or they will say they can't afford to attend but plan to in the future. Asking someone for their value for free is just simply begging. They are really asking to take money out of your wallet and deposit it into their wallet. (The same principle applies to non-profits and not-for-profits, which want you to do free work because of the "exposure" you'll receive.)
Neither you nor your clients should expect something for nothing, else you would be providing free help 50 hours per week and never find the wherewithal to feed your family.
As
Adam Randall said yesterday in response to one of my
other threads here: "You get what you pay for".
But you don't have to spend money to educate yourself; however, you do have to invest time. You can learn by downloading free articles and audio from my websites; from reading my blog; and from participating and asking questions on forums such as this one.
Are these challenging economic times? Yes.
Do we need to re-examine our value offering to clients and potential clients? Perhaps.
Do we have to find new and innovative service offerings to stand out from the crowd? Maybe.
Must we reduce our prices or do things for free to survive this downturn? Definitely, not!
If you think business is tough now, it will be more like trying to teach an elephant how to do the Pride of Erin in treacle if you start cutting your prices arbitrarily.
Invest in yourself with education and ensure your clients invest in you for the value you can deliver for them. My response to people who ask me when is the best time to begin their coaching with me never varies: Today.
Have confidence in yourself and stop working for free!
Here's to a sensational 2009 for all of you.
Rgds,
Ric
Have confidence & stop working for free! 
