Archive for the ‘Value Is Not About Money’ Category

Dear Danielle: Is There a Formula for Raising My Rates?

By Danielle Keister | January 30th, 2019

Dear Danielle,

Happy New Year! I hope all your dreams will be actualized in 2019! My question relates to raising rates with current clients and if there a formula to follow. In the past I have used the script you provided in your blog post Raising Your Rates, and I must say it has worked like a charm. I love all the advice you provide on the blog in this category, especially about not letting fear get the best of you when you offer high quality service. Over the last couple of years, I have restructured my administrative consulting business. I offer a core service in two niche markets. During this time, I have retained five clients and have had great success. With each new client,I have incrementally raised my rates. This gets me to my question: The first client I retained almost two years ago is THRILLED with my service. Not only did I meet the contractual obligations, but went above and beyond. I really hit the ball out of the park with this client. They are often singing the praises about my administrative consulting firm. Since their two-year anniversary is approaching, I was planning on raising their rates. Is there standard protocol to follow (like tipping a server at a restaurant)? I thought I would raise my rates (REMOVED)%. This is a number I picked because when I see a vendor, utility, or dental plan increase by this amount, I think, “that’s fair,” but any higher, I feel like I am being taken advantage of. Next, I looked up the cost of living increase on Google. It is 3% each year for 2017 and 2018. That makes me wonder, would I be undercutting myself with a (REMOVED)% raise and should I increase to (REMOVED) %? Vacillating to the other end of the spectrum, I am obsessed with client satisfaction. I don’t want to raise the rate so high they feel taken advantage of. We have a dynamic relationship. Would seeing the numbers help? The client’s current retainer is $(REMOVED)/month. As I solicit new clients, they will pay $(REMOVED)/month for this service. However, I am not ready to lose this client. I truly value your guidance in this situation. Thanks again for all you do for our community! —Name Withheld for Privacy

Thank you, and happy new year to you as well! And thanks for the great question which I’ve been chomping at the bit to answer for you.

First, congratulations on your well-earned growth and success. That is absolutely wonderful to hear!

I also want to let you know that I am keeping your name anonymous and removed certain info from your question for reasons I will explain below.

The short, quick answer is that there is no formula for raising your fees. I know people love to be given formulas, but it’s not that simple.

It’s also highly illegal for members of a profession/industry to discuss rates or setting standards or minimums or formulas when it comes to pricing as these things violate antitrust laws. Those kind of conversations constitute what is termed “collusion.”

The state and federal agencies that oversee these laws take violations very seriously so we never want to run afoul of them.

It doesn’t matter how big or small a business is, whether they are sole proprietors or big corporations, or how much money they make, we are all subject to these laws.

As they will tell you: ignorance is not a defense. This means you can be prosecuted for violations whether you were aware or not.

This is why I am always trying to educate our industry on this topic. Read this post for a bit more in-depth info: Dear Danielle: Why Can’t You Just Give Us a Ballpark Figure When It Comes to Pricing?

So for all the other colleagues out there, the bottom-line is this: STOP asking others what you should charge!

Not only are you putting yourself in danger, you are putting others as well as our entire industry in jeopardy. Your pricing is for you and you alone to determine.

The good news is that we don’t have to discuss specific numbers to help each other learn and grow in our business smarts and profitability.

Here are the things I would want you to give some thought to:

Don’t compare what you do to a utility. You are not a commodity; you are a professional service provider.

Your value is relative to how you improve the life and business of each of your clients, not how much they pay for a box of cereal on a shelf.

Here are a couple of posts to help people better understand and remember what their real value is to clients (hint: it’s not how much/little clients pay or how much money you save them):

How has your work helped them advance, grow and improve in their business? What goals has it helped them achieve or get closer to? How much more time and freedom do they have since working with you?

When it’s time to raise your rates, be thinking along these lines and taking note of them, not just how much your workload may have increased, although that is certainly relevant as well.

People know that when they get more, they pay more. The benefit of connecting what they have gained by working with you, however, is that it helps keep them in a positive mindset toward fee increases, particularly when they are increased for more abstract reasons (such as cost of living) and not necessarily increased workload.

How you determine your fee increases and how much to increase them by is entirely up to you. There is no right or wrong way to do it.

I’m concerned that you have one-price-for-all.

If you are providing administrative support, you are providing a variety of tasks, functions, and roles for each client, each of whom is unique and whose support areas, needs, levels, and objectives are all going to be different from the next client.

When you are providing a value-based service, there shouldn’t be anything cookie-cutter about your pricing. Each client’s needs and support plan should be evaluated and determined on an individual basis. This is something I show people how to do in my Value-Based Pricing Guide.

It doesn’t tell you what to charge or give you a formula. It will show you what factors to take into account, how to identify/categorize support plan areas and set parameters and boundaries, and give you as systematic an approach as you can get for determining your pricing around your support plans that is fair and profitable for both you and your clients.

Capture their “before” picture at the start of every new client relationship.

When you consult with potential clients and onboard new ones, be sure to include a step where you obtain as complete a picture as you can of their current challenges, difficulties, pain points, and obstacles, as well as their desired objectives and outcomes BEFORE you start working together.

(If anyone reading this doesn’t have a consultation process in place, you NEED one now! Get my Consultation Guide for an easy, step-by-step plan that shows you exactly what to do before, during and after.)

Not only does this help you create case studies/stories for your website, it’s also incredibly useful insight to have when it’s time to raise your fees.

By better identifying what each client actually values and what they’re trying to accomplish through your work together, you can use that information to set benchmarks and emphasize those accomplishments.

They also inspire clients by helping them remember what life was like before they had your support and how far they have come and what a smart decision they made in choosing you.

Survey clients for their feedback and suggestions on a regular, consistent basis.

This is something else that is useful when presenting fee increases as it can help you connect the dots from your work directly to what the client’s values, goals and objectives are.

I recommend getting client feedback at least every year for established clients, and more frequently (e.g., every three to six months) for new clients.

One caution, though: Don’t raise fees at the same time of year that you survey clients for their feedback and suggestions. Do these two things at different times of the year.

Similarly, if you have my Value-Based Pricing Guide, you know that I also recommend reviewing every client’s support plan at regular intervals.

For new clients, you are going to do this more frequently because there is a lot of ramping up and getting to know the work and each other and fine-tuning of things in that first year of working together.

For them, I suggest reviewing their support plan internally every two to three months initially in that first year.

You want to make sure you are honoring the parameters you both agreed to and identifying any scope creep that you have not have taken in account and then adjusting accordingly at the next fee increase.

With established clients, you may decide that an annual support plan review is sufficient for your purposes.

Keep clients informed upfront all along the way with plenty of notice.

Let new clients know that there may be a period of adjustment in the first months/year of working together and that you will be reviewing their support plan every so many weeks or months.

If there are areas that have been or need to be added on or increased (or been eliminated or significantly decreased, for that matter), let them know that the fee they pay may be affected.

And let established clients know that their support plans are reviewed regularly as well (e.g., annually or every six months).

The key is to inform all clients upfront that their support plans are reviewed at specific intervals and that there will be periodic fee increases as you deem necessary or appropriate

You want them to understand that what they pay is relative to the support areas and parameters you have agreed to, and as those change and evolve or increase, you will be examining them and adjusting pricing accordingly.

At a very basic level, all I can say is this: You know your clients. You know what you do for them. You know when you feel like you are doing more than what you are charging for. You know how they are benefiting from your work. And you know when it’s time for raise fees for the profitability of your business and in keeping with the value you are providing.

When you start to feel those nigglings, that is always the correct time to review and adjust.

Always be reviewing and evaluating internally, and then on whatever regular schedule that you determine, implement your fee increases.

For Example

Let’s say you like to go through your annual feedback process with clients around May or June when business generally tends to slow down somewhat for everyone and they have more time to reflect.

You could then time your annual fee increases for January.

Whenever you time these events, I suggest you always give clients 30-60 days’ notice of any support plan adjustments/fee increases.

This gets them used to the idea, gives them time to ask any questions they have, and ensures no one is surprised or caught off guard. That’s the only thing that would really create ill will.

By giving courteous notice, it’s only going to help you adjust things in the best way possible for both you and each of your clients.

The bottom-line: Never surprise clients with things coming out of left field.

Everyone appreciates a heads-up so they can plan and budget accordingly, and your fee increases will be far more well-received.

Sometimes It’s the Little Things that Make the Highest Impact

By Danielle Keister | January 23rd, 2018

0 Comments

My target market is solo attorneys (specifically, those with a practice focus on business, intellectual property, and/or entertainment law) and believe it or not, even lawyers get writers block.

Pretty much everything they do involves writing so that can be a real business-killer.

And do you know what my clients tell me over and over is one of the most useful things I do for them?

Crazily enough, it’s simply starting a draft document or letter for them.

I set my clients up with their own branded templates for everything in their business: letterhead, envelopes, labels, pleading form, etc.

They could easily just open a template and start it themselves.

But quite often, because they can have so much other stuff on their plate at any given time, that simple step is too much for them to even begin and they get blocked.

So, whenever they need to start a complaint, write a motion response, reply to a letter, etc., they ask me to get the ball rolling. (Or, when I know one is needed, I just start one without being asked.)

And that simple assist of taking care of the back-end details so they don’t have to is what helps them break through the stuckness.

This is an example of why having an administrative partner is so useful to clients.

It’s not that they couldn’t do all or most of what we do for them themselves.

It’s that the mind plays tricks. It runs out of bandwidth when it tries to juggle too many details all alone.

With us as their administrative partner, we create a back-and-forth volley that helps them move through things step by step to keep their mind from getting overburdened and too ahead of themselves.

So it’s quite often the simplest of things we do that can have enormous positive impact and value for our clients.

Um, Hello?! Do You LIKE Being Devalued?

By Danielle Keister | April 12th, 2017

0 Comments

Telling people you cost less and that they’ll save money by hiring you is basically TELLING them to devalue you.

It’s a cattle-call to all the worst kinds of clients out there (you know, the cheapskates who want everything for nothing and think nothing you do is good enough).

You might think this is the sexy message it takes to attract attention, but what it gets you is the wrong attention from the wrong kind of clients.

All this talk about saving and lower costs and being affordable and cheaper than an employee, etc., puts people in poverty/scarcity mindset.

But you need for clients to stop clutching the purse strings in order to invest in you and themselves.

So, you’re defeating your purpose by making your marketing message all about the money.

Stop doing that.

Something worth having is worth paying well for. (And clients who pay well are worth having, believe you me. You want that for yourself, don’t you?)

Stop talking about the money, and start talking about all that clients gain from working with you.

My Challenge to You

Start a list of all the ways your clients’ circumstances are improved by working with you, all that they gain, how they benefit.

DO NOT list anything having to do with money or saving it in any way.

The resulting list (which you can keep adding to throughout the life of your business) is what your marketing message should be all about.

(Keep this list in a tool like Workflowy so you can add to it on the fly quickly and easily.)

Why Should I Pay that When I Can Get a Temp or Offshore VA for $5 Bucks an Hour?

By Danielle Keister | December 1st, 2016

3 Comments

Ever hear a client utter these words?

It’s probably the most grating sentence in our industry today.

But what if you knew exactly how to respond?

What if you offered your services in a way that didn’t focus whatsoever on hourly rates?

Wouldn’t that be a total game changer?

It’s not so annoying when you actually begin to love responding to that question (or when you no longer get it in the first place).

…If you frequently encounter price resistance with clients and want to know what to do about it;

…If you have trouble getting clients to commit;

…If you struggle with articulating your value to clients, talking about your fees, and feeling confident about them;

…If you find the whole topic of pricing difficult, I have the solution!

It’s my value-priced packaging and pricing guide, How to Price and Package Your Support Based on Hours & Expertise — NOT Selling Hours

This guide will show you how to:

Attract more clients, more easily;
Make more money;
Create an easier business to run;
And toss out those time sheets forever!

…all without discounting, bargaining, or justifying your fees whatsoever!

Dear Danielle: What Is the Best Approach to Physically Obtain Quality Clients?

By Danielle Keister | July 6th, 2016

0 Comments

Dear Danielle:

I am very new to the Administrative Consulting business although I have almost 20 years of experience supporting senior-level executives. I agree with you that we are so much more than “virtual assistants” and I would like to attract customers who understand that and value what we bring to the table, if you will. Therefore, my question to you is now that I’ve created a website and all other social media accounts, what is the best approach to physically obtain quality clients? Eventually, I may narrow my target but for now, my target is Small Business Owners. Thank you. —ND

Hi, ND. Welcome and thanks for reaching out. 🙂

Sounds like you’ve got the perfect background and a solid body of experience to offer clients. Wonderful!

Of course, there’s much more to business than simply knowing how to support clients and do the work, as you realize.

Learning how to run, manage and market a business and get actual clients (much less good ones) is a whole other skillset and area of education in and of itself.

This is why your question is more of a training one, rather than something that can be answered in a simple blog post.

It requires a more in-depth, systematic process of learning to understand the components, dynamics, and psychology involved.

To get that kind of knowledge and learning, I will refer you to my step-by-step self-paced training guide I created specifically for that purpose: How to Build a Website that WORKS!

This guide is centered around your website because your website IS the critical link in connecting your marketing and networking to actually getting clients, and not just any clients, but the kind of clients you want to reach: quality clients who understand your value.

This involves pre-educating your site visitors so they are in the right mindset, setting the right expectations, and prequalifying clients to help ensure you are productively spending your time in consultation with your most ideal and likely client candidates.

In the process of going through the steps and exercises, my guide also gives you a crash-course in inbound marketing because the two go hand-in-hand. You can’t set up an effective website and conversion system that gets results unless you understand all the components and mechanics involved.

Another thing I show you how to do in my guide is how to articulate your value and write your marketing message (and I have a clever system that helps you do that, no writing talent required; couldn’t be easier).

This is where having a target market is absolutely vital.

If there are any “secrets” in business and getting clients (and there aren’t), this is it.

And that’s because it’s not so much a “secret” as it is an area of misunderstanding and resistance for so many people.

You mention that right now your target is “small business owners.” But that isn’t a target at all, you see.

“Small business owners” is merely a demographic, and a very vague, general one at that which isn’t going to be helpful to you in any meaningful way whatsoever in creating a compelling marketing message and getting those ideal clients who value what you do.

It’s like saying “people” are your target market. That’s literally anyone and everyone in the world — which is the opposite of a target market (which by definition is a specific market).

A target market is simply an industry/field/profession that you cater your administrative support to. That’s it. However, it’s a vitally important component in getting those quality, ideal clients who understand your value that you wish for.

And this is where people struggle because they resist the idea that they actually expand their attractiveness and opportunities if they narrow their focus to one specific group.

Because here’s the thing: you can’t articulate your value in any truly meaningful, compelling way until you know who it is you are providing that value to. And that requires you to decide what industry/field/profession that will be.

Because it’s all relative.

Your value — what you provide, the solutions you offer, how you deliver those solutions and the results you create — all depends on who your audience (i.e., target market) is: who they are, what their commons interests, needs, challenges and goals are, what work they do in their profession, how their businesses are run, who their clients are, how they get those clients, and so much more.

You have to decide who it is you specifically intend to help in order to identify, understand and articulate your value in a way that speaks to these things as it relates to them. Otherwise, all you’ll ever accomplish (by trying to create a message for anyone and everyone) is being generic and forgettable.

To stand out, to create real meaning, to get focus and direction for your message and your marketing, you need specificity.

That specificity (i.e., deciding on a target market to cater your administrative support to) is what is not only going to get you more ideal clients who value what you do, it’s also going to make your business and marketing easier, you’ll have an easier time charging higher fees and making more money, and you’ll be able to get more clients more quickly and easily.

If you haven’t yet, be sure to download my free guide on How to Choose Your Target Market.

Start there, decide on a target market and then get my marketing/website guide, and you’ll be well on your way to getting those ideal, quality clients who absolutely understand how valuable you can be to them.

Dear Danielle: How Can I Turn this Employer into a Client?

By Danielle Keister | December 16th, 2015

0 Comments

Dear Danielle:

I work for a small business and the majority of my job is done offsite and remotely. When I came into the business there were no systems in place, no manuals or training tools available and patients accounts were all out of balance. I have worked to restore these areas in addition to the accounts receivables. I am no longer able to ignore the nagging pull to launch out and begin my own administrative support business. However, I feel that I can retain my current employer as a client. I am costing them more I believe. I have been paid by the hour as an employee and it has been a tremendous cost to get things up and running more smoothly. Now that I understand all the inner workings of the business, offered my advice as well as support, I feel my inside job has come to an end. There are many more factors to list but I don’t want to take advantage of your time. Please tell me your thoughts on this. How I should move forward? —Anonymous by request

Hi Anonymous 🙂

Thanks for your question.

If you feel you can turn this employer into a client, go for it.

Since you asked me, though, I’m going to let you know why former employers don’t make for the best of clients.

Employers tend to want to keep working with you in the same old ways. That’s a problem because when you are running a business, there is necessarily going to be a difference in when and how you work together. You can’t be at their instant beck and call the way you were when you worked for them as an employee. They had your undivided time and attention because you were their employee, being paid to be dedicated solely to them 9-5. But as a business owner, you have other clients to serve, other important duties to attend to (or you will have, and you have to operate and plan your business around that eventuality). You simply are not going to be able to work with them in the same way as you did when you were an employee, not if you are going to grow your business and have time and room to work with other clients. And that’s not a transition that many employers are able or willing to make.
Not all, of course, but generally employers are employers for a reason. Many very specifically want employees who are dedicated solely to their interests and to whom they can dictate hours, roles and duties. Likewise, some workloads simply require in-house dedicated staff. Contrary to popular belief, not every business/client is a good fit for what we do. Trying to fit square pegs into round holes is an effort in futility. Why bang your head against that wall when there are others far more suited to (and interested in) being clients rather than employers?
Past employers tend to resist changes. They only know you and the relationship they had with you in one context — employee. This can be problematic and make it incredibly difficult for them to see you in a new and different light, which is necessary if the business relationship is going to be successful. It is absolutely vital that clients understand the relationship in a business-to-business context and that there is going to be an entirely different dynamic at play. But past employers tend to be stuck in employer/worker bee mindset and want to keep you in that box and treat the relationship like that. What that means is, instead of extending you professional courtesy and respect and viewing you as their administrative expert and trusted advisor, many can be stuck in a pattern of barking orders at you and thinking it’s their place to dictate everything. A client who doesn’t understand he is a client, not an employer, has a whole different demeanor in his communication and behavior, and not for the better. And that just does not work in a business-to-business relationship.
Their preconceived notions or relationship with you can limit their thinking and keep you boxed in. When you start a business and consult with fresh potential clients, it so much easier to educate them and manage their expectations in the way you need them to be because you’re working with a clean slate, so to speak.

That said, if you think this employer has good client potential despite the above, there are things you can do to help facilitate a successful new business-to-business relationship:

Have a consultation process. If you don’t have one, you can get that with my Client Consultation Guide.
Never take shortcuts with your consultation process. What I mean by that is, many people think because they already know and have a previous relationship with a potential client (such as the case with a former/current employer) they don’t have to conduct a full and thorough consultation. And that’s a really bad idea. Because part of what the consultation process does (at least if you are following my client consultation process) is it helps give proper context for your new business-to-business relationship with each other. This helps employers-turned-clients understand the new relationship so they can treat it and conduct themselves accordingly. It helps these past employers view you not as their employee/worker bee, but respect you as a business owner, someone who is going to now be their administrative partner/expert and trusted advisor. It also helps them understand that there are going to be necessary and significant differences in how and when you work together.
Have a Client Guide ready to give to new or prospective clients. A client guide is a map, or decoder ring, if you will, written in friendly, positive, client-centric language that informs clients about how things work in your business, what your policies, procedures and protocols are, what your standards and expectations are for working together, and what rights and expectations they may have with regard to the work and results. This is another tool that helps facilitate a successful relationship moving forward and gives former employers/new clients proper context. It helps them see you as a business and no longer their employee. If you don’t already have one, you will get a free Client Guide Template included as a bonus when you purchase Set-01 (the Administrative Support Business Set-Up Success Kit) from the ACA Success Store.
Have a proper business website and direct your past employer/potential client to it. And by “proper” I mean it is set up and populated with content that will inform and educate prospective clients about what you do, how you do it and how it helps them. This is another way you pre-educate clients in the way you need them to be and set and manage proper business expectations and understandings in them, which in turn helps them view and interact with you as a business owner (and not their employee). If you don’t have a website yet or your current website isn’t getting good results, be sure to check out my Build a Website that WORKS guide. This guide tells you exactly how to create a business website that gets results — i.e., more consult requests and ideal clients.
Always use a contract. This is another area where people do themselves a huge disservice by taking shortcuts. They think just because they already know the person, they don’t have to go through those motions. But here again, a contract is another tool the use of which extends far beyond its mere practical application. Besides making sure the terms of the relationship are clear and in writing, just having a contract and going through the contract signing process helps former-employers-turned-clients understand the new business-to-business context, which helps ensure a successful working relationship moving forward.

There was something else I wanted to address that is a common misstep for new business owners: thinking your value is all about being cheaper than an employee.

Let me say this loud and clear: your job is not to be cheap.

Your job as a business is to deliver a service that improves the life and business of the client. And that costs whatever it costs.

Value, in the context of a professional service business, is not about discounts and savings and two-for-one specials.

Value is about how the results of your work improves their circumstances and makes business and life better and easier for the client, how it helps them achieve their overall goals and objectives.

This is a frequent topic on my blog so I have a little bit of homework for you. I want you to read these blog posts to help you overcome the scarcity/poverty/employee mindset that new business owners are so commonly susceptible to:

In fact, I have a whole category on my blog on this topic that is extremely eye-opening and empowering for everyone: Value Is Not About the Money

And remember that you are not your ideal client. You can’t base your business decisions and fees on what you would pay or could afford to pay.

Because that’s not how your ideal client thinks or operates, and you’ll never build a financially solvent, sustainable or successful business if you stay stuck in that mindset.

Your ideal client is one who is quality-minded and can well afford professional services. This client values administrative support because he understands this is the work that will help achieve his big picture goals and objectives. This client therefore wants a highly-skilled administrative expert and partner (not an order-taker) who will lead, guide and advise him in the administrative process with a view toward results.

As Seth Godin so elegantly put it recently: “You are not a task rabbit. You’re a professional doing unique work that matters.”

You Are Not in Business to Be “Money-Saving”

By Danielle Keister | June 19th, 2014

4 Comments

You’re not in business to be “money-saving.”

You’re in business to make a positive difference in the lives and businesses of your clients.

And that costs money.

If you make your message all about being “money-saving,” if that’s the very first and foremost thing you’re talking about, that’s code for “cheap.”

And guess who that attracts? Cheap clients who don’t want to pay for anything.

If you make those people your clients, you will always be broke.

So, ask yourself. Are you in business to be cheap or are you in business to make a difference in the lives of your clients?

If it’s the latter, then focus on that message, NOT on discounts and savings and free this and that.

When you do that, you’ll get clients ready and willing to pay well because they aren’t there for the free or cheap buffet, they are there to have a difference made in their business.

You Are Not an Expense

By Danielle Keister | July 22nd, 2013

2 Comments

You are not an expense.

You are an investment.

An expense is money down the drain.

An investment is something that yields returns greater than the money spent.

And that’s exactly what administrative support yields for clients. It yields greater returns in the form of more time, more bandwidth and creative space, more energy, greater focus, less stress, faster progress, better business, smoother operations… the list goes on.

Stop talking about savings and discounts and free this and that, and start talking about what your clients GAIN from working with you!

Dear Danielle: Is Telling Clients How They Can Save a Good Thing?

By Danielle Keister | June 12th, 2013

4 Comments

Hello Danielle!

I have a question for you. I am working on starting my own bookkeeping business, and while I know you are focused on Admin Consulting, I trust and value your opinion. On a business website and other marketing materials, you say to not compare yourself to replacing an employee or saving clients money because that will attract the cheapos, but would you say the some thing for an independent bookkeeper? I can see it working both ways, but I don’t want to attract the wrong type of client. Business owners are concerned about the cost of a bookkeeper and many can’t afford one in house, so telling them how they can save by using an independent bookkeeper would be a good thing, right? Anywho, I wanted to run this by you and get you thoughts if you have a moment! Appreciate all your posts (blog/Facebook/etc). —Candace Moore

Hi Candace 🙂

I don’t normally spend time answering questions that don’t have to do with Administrative Consulting. I can’t, you know? I have my own business to run and other priorities, etc., so I have to keep my time and energy focused. And my interest, obviously, is the Administrative Consultanting profession.

But what appealed to me about your question was that you recognized that, and weren’t taking me or my time for granted. And I really appreciate that about you. So thank you.

In answer to your first question, yes, it’s still definitely true for ANY business. You are not a staffing agency or a temp agency and all those comparisons do is set wrong expectations and understandings. It actually MAKES clients think you are some kind of substitute employee.

And that’s not how you need clients to think of you when you are in business to provide a service, not staff their business.

My answer to your second question is NO, that’s not a good thing. You’re focusing on the wrong clients with the wrong message. People who can’t afford in-house support is their problem. You can’t make their poverty issues yours or work with broke, cheap-minded clients or you’ll keep your business impoverished as well.

Plus, it’s just the wrong angle to take that keeps them thinking in terms of expenses and costs, instead of properly investing in their growth and success. Which is what you are: an investment, not an expense.

You never want to use money as the bribe. That’s not the value, and if you focus them on costs/savings/discounts/freebies, that’s what they will ALWAYS be focused on. You can’t afford to be in business to be their cheaper substitute.

Be thinking of these things instead:

WHY do clients need bookkeeping services? What are all the reasons/pains/challenges that cause them to seek a competent bookkeeping service? How will their life and business be improved by working with you, a competent bookkeeping service? How does having that service positively impact their life, their business, their financial circumstances? How do you imagine that might make them feel?

The answers to these questions are what your value is, not the money or the savings. Speak to those things.

How Billing by the Hour Is Killing Your Business (and What You Can Do About It)

By Danielle Keister | February 26th, 2013

4 Comments

Here’s a video I made a few years ago to help people understand how billing by hour (selling hours) is keeping them broke and killing their business.

This can be a difficult concept to understand at first. For many folks, it’s not until they’ve been in business for a bit that they realize the dilemma. It’s usually then that things finally “click” and they get it.

Then, there are people who understand the problem immediately and want to avoid it altogether in their practice.

Whatever camp you’re in, my Value-Based Pricing and Packaging Toolkit will show you how to stop selling hours (and selling yourself short) and learn how to price and package your value and expertise instead.

I’ve been practicing and studying this methodology since the 90s and been teaching it to our industry since 2004. I introduced the concept and adapted the methodology for our industry and I’m really the only person in our industry uniquely qualified to show you how to implement in your practice.