Package and Position Your Consulting Services to Earn Higher Fees
Summary
TLDRIn 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.
Outlines
💼 Increasing Fees Through Value-Based Service Packaging
Michael Zaperski from consultingsuccess.com discusses the importance of packaging and positioning services to increase fees and project earnings. He observes that many consultants, including international tax consultants, often rely solely on an hourly rate, which may not convey enough value to the client. One consultant charges $450 per hour but fails to offer a compelling reason to engage their services. Zaperski suggests creating a program or service package that communicates greater value, such as a specific program with a set fee of $1500, which could be more appealing to potential clients. He emphasizes the need to shift from hourly rates to value-based pricing to capture more earnings and win more business.
🚀 Transitioning from Hourly Rates to Value Communication
In the second paragraph, Zaperski continues the discussion on fee structuring by advising against reliance on hourly or daily rates. Instead, he recommends focusing on the value and results delivered to clients. He shares a story of a consulting client who was generating over $200,000 a year but wanted to reduce travel and spend more time with family. By transitioning to value-based business models, Zaperski helped the client create opportunities to double their income to $400,000 in a few months and potentially reach $900,000, with less travel and work involved. The key takeaway is to communicate the value created for clients in all interactions and to price services in a way that reflects the significant value provided, allowing for higher earnings and client satisfaction.
Mindmap
Keywords
💡Packaging Services
💡Positioning
💡Hourly Rate
💡Value Proposition
💡Compelling Offer
💡Consulting Success
💡International Tax Consultants
💡Business Models
💡Client Projects
💡Value-Based Pricing
💡Compensation
Highlights
Michael Zaperski from consultingsuccess.com shares advice on increasing service fees and earning more per project.
Consultants often charge an hourly rate, which may not convey enough value to clients.
An example of an international tax consultant charging $450 per hour is given.
Charging an hourly rate can leave money on the table due to lack of perceived value.
Suggestion to create a program instead of just an hourly fee to increase perceived value.
A specific program offer can make clients feel more compelled and attracted to the service.
The mindset shift from hourly cost to the value provided is crucial for higher fees.
Transitioning from hourly to value-based pricing can open up new opportunities.
A consulting client's story is shared, illustrating the shift from hourly to value-based pricing.
The client's goal to double their business and reduce travel is mentioned.
Creating new business models that focus on value and results rather than hours worked.
The potential to significantly increase income with less work and travel is highlighted.
Two recommendations are summarized: creating packages and focusing on value communication.
Demonstrating value to clients instead of just stating fees can lead to higher charges.
The importance of delivering more value to capture more compensation is emphasized.
Encouragement to reflect on current practices and consider the suggested approaches for business growth.
A prompt to take action and expect positive results from implementing the advice given.
Transcripts
hi it's michael zaperski
from consultingsuccess.com and i want to
share with you how you can package and
position your services
to increase your fees and earn more with
every project
you take on i was recently speaking
with several international tax
consultants to look at getting some
help in certain areas of our business
and one thing that i saw consistently
across the board which i've seen with
so many consultants is that they just
put out their
hourly rate i had one international tax
account
who told me i charge 450 if you want to
come in
to to talk about your your issues
then we can do that and i lower my
initial rate
my hourly rate for that first
consultation but my fee is four hundred
fifty dollars an hour
now fine four hundred fifty dollars an
hour for some people
that might sound like uh a premium
however it's actually not
and what i mean by that is that if you
just stick to
an hourly rate you are leaving a lot of
money on the table
now 450 an hour actually
sounds like a lot right for someone to
be making 450
an hour to many people that sounds like
a big figure
but the problem with that is that when
you just put it out and say that your
fee is 450
an hour it doesn't really convey a lot
of value
it doesn't really give you a compelling
reason to buy
from that person so instead what i want
to do is offer you
a couple of ideas that will help you to
not only earn higher fees but also that
will help you to win more business
because
buyers will see them as higher value
so in this case specifically what could
this international tax account
have done if you're a consultant
watching this right now what can you do
if you're currently using
an hourly fee what can you do to convey
greater value and win more business well
the first thing is
think about creating a program so rather
than saying my hourly fee
is x dollars right 450 dollars 250.
thousand dollars instead create a
program
create an offer so if this international
tax account had said
you know michael uh i have a specific
program
where i will take you through these
things one two and three
and the fee for that is fifteen hundred
dollars
i would have been much more compelled
i would have felt much more attracted to
that
offer however all they said was my fee
is 450
an hour and to me that sounds like a
premium
fee but it didn't give me much of a
reason to take action on it because
right away my mindset shifts to well
every hour that i use you cost me 450
dollars
but i wasn't seeing the value from that
so my the second recommendation
suggestion that i have for you actually
is connected to another story
just this morning i was speaking with a
new consulting client of mine
that is going through my coaching
program and we talked about
what they're doing right now they're
currently generating a little over two
hundred thousand dollars a year
but they want to grow and they're
feeling like they are spending too much
time
working on client projects not enough
time near their family and their loved
ones and in their local area because
they're traveling so much
so what did we do well we looked at
their current situation and their
current situation
has them charging on an hourly
and daily basis so
my recommendation to them and the same
to you
is to shift and transition away from
charging on an hourly basis
and a daily rate basis and instead focus
on the value and the results that you
are creating
and as soon as you do that a whole host
of opportunities
and options uh come in front of you this
specific client
we were able to create two new business
models for them
on that call that now will allow them to
reach four hundred thousand dollars to
double their business in the next couple
of months here and then going forward
a model that will actually help them to
generate nine hundred thousand dollars
and now the interesting thing about both
these models that they will require a
lot less
travel actually a lot less work
in the business that this consultant
will need to do
so again the two recommendations just to
summarize here for you
if you want to increase your fees
is to move away from just saying that
your hourly fee or your daily
rate is by creating packages by creating
a program for your services that conveys
a lot more
value and then to shift again away from
the hourly and daily
through the second approach which is to
make sure that you communicate
significantly more
value in everything that you do focus
your communications with buyers and
clients around the value that you will
create for them
show them demonstrate that value instead
of just saying what your fee
is that will allow you to charge
significantly more because
you are creating more for them and as
you deliver more
value for your clients you too can then
capture a lot more of that value
in terms of your compensation
so think about how those two
steps how those two approaches can play
into what you are currently doing
and ask yourself can i benefit from one
of them
what steps do i need to take right now
to start
seeing those results in my own business
and when you do you'll be pleasantly
surprised
you
Посмотреть больше похожих видео
How To Charge For Design & Creative Work (Full Sales Masterclass & Roleplay)
How To Make Your First $1,000 Online In Less Than 14 Days
The Key To Selling High Ticket Graphic Design
HOW TO GET MORE CANDIDATES (MY SOLUTION)
99% Of Creatives Lose Money With These Pricing Mistakes
Why Premium Pricing is Key for Service Businesses | Dr. Francis Jezek
5.0 / 5 (0 votes)