Package and Position Your Consulting Services to Earn Higher Fees

Summary

In this video, Michael Zaperski from consultingsuccess.com discusses strategies to increase consulting fees and win more business. He advises against relying solely on an hourly rate, as it fails to convey sufficient value and may deter potential clients. Instead, he recommends creating packaged programs that offer clear benefits and transitioning to value-based pricing. By focusing on the results and value delivered to clients, consultants can charge higher fees, increase their income, and potentially reduce the amount of time spent on projects.

Takeaways

• 💼 Charging an hourly rate can limit your earning potential and may not convey enough value to clients.
• 🚀 Consider creating a structured program or service package that offers a clear set of deliverables for a fixed fee, which can increase perceived value.
• 💡 Positioning your services with a focus on the results and value you provide, rather than just the hourly rate, can help win more business.
• 📈 Transitioning from hourly or daily rates to value-based pricing can open up new opportunities and increase your income.
• 🤝 Demonstrating the value you bring to clients, through clear communication and showing tangible results, can justify higher fees.
• 💼 Consulting clients may be more attracted to a well-defined program with a set fee rather than an open-ended hourly rate.
• 📊 The speaker suggests that by focusing on value, consultants can create business models that increase income with less travel and work.
• 🛍️ Offering a specific program with a set of services and a fixed fee can make clients feel more compelled and attracted to your offer.
• 🔑 Emphasizing the value you create for clients, rather than just stating your fee, can lead to higher compensation and client satisfaction.
• 📈 There is potential to significantly increase your income by shifting from an hourly rate to a model that emphasizes the value of your services.
• 🛑 The mindset shift from hourly billing to value-based pricing can change how consultants perceive their services and how clients perceive the cost.

Q & A

What is the main issue with charging an hourly rate for consulting services according to Michael Zaperski?

Charging an hourly rate, such as $450 per hour, may sound premium but doesn't convey much value or provide a compelling reason for clients to engage the consultant's services.

What alternative does Michael Zaperski suggest to simply stating an hourly rate?

Michael suggests creating a program or an offer that outlines specific services with a set fee, such as a program for $1500, which can convey greater value and attract clients more effectively.

Why might clients feel more compelled by a program with a set fee rather than an hourly rate?

A set fee for a program gives clients a clear understanding of what they will receive, making the consultant's services seem more valuable and providing a compelling reason to take action.

What is the potential downside of focusing solely on an hourly rate for consulting services?

Focusing only on an hourly rate can lead to clients feeling like every hour costs them a significant amount without seeing the value in what is being offered, which may deter them from engaging the consultant.

What is one of the key strategies Michael Zaperski recommends for consultants to increase their fees and win more business?

One strategy is to shift away from charging on an hourly or daily basis and instead focus on the value and results being created for the client.

How can consultants demonstrate the value they create for their clients?

Consultants can demonstrate value by clearly communicating and showing the specific benefits and outcomes that clients can expect from their services.

What is the potential benefit for a consultant in creating a new business model that focuses on value and results?

The potential benefit includes the ability to charge significantly more for their services, as they are creating more value for their clients, which can lead to increased compensation.

Can you provide an example of a new business model that Michael Zaperski discussed with a consulting client?

One example is creating a model that allows the consultant to double their business in a few months and potentially reach an annual income of $900,000, with less travel and work involved.

What is the importance of focusing on the value created for clients rather than just the fees charged?

Focusing on value allows consultants to build stronger relationships with clients, justify higher fees, and potentially reduce the amount of time spent on client projects, leading to a better work-life balance.

How can consultants assess if they can benefit from the strategies suggested by Michael Zaperski?

Consultants can reflect on their current business practices, consider if they are primarily charging hourly rates, and evaluate whether creating value-based packages or programs could benefit their business.

What steps should consultants take to start seeing results from implementing the strategies discussed by Michael Zaperski?

Consultants should evaluate their current offerings, identify areas where they can package services to convey more value, and begin communicating the benefits and results they provide to clients more effectively.