Pricer’s Points: To Capture Your Value, You Must Communicate Your Value | Tim Williams

The work and solutions provided by your firm have likely created millions of dollars of value for your clients. How much of that value have you captured?

When we leave money on the table, it’s not just because we have under-priced the work. It’s also because we have under-communicated our value. Worse still, we have likely not focused on value at all; rather, we engage our clients and prospects in discussions about our costs (hours and hourly rates). We construct, explain and defend the fee we’re charging based on the costs of our inputs rather than the value of the outputs or outcomes.

Don’t count on your client — especially if it involves a professional buyer like procurement — to make these arguments on your behalf. Professional buyers will focus on costs — that’s their job. It’s your job to focus on the value.

In addition to the tangible value you create for your clients, there is always an accompanying amount of intangible value. When you help solve an important business problem, you’re also helping your client enhance their growth prospects, protect their reputation, reduce their stress, and secure their future. These are not inconsequential benefits.

When describing what your firm does, the language and context are immensely important. Pricing expert Hermann Simon tells the story of two young immigrant masons in California who were able to provide more perceived value to homeowners by describing themselves not as masons but as “European bricklayers; experts in marble and stone.” One of these youthful immigrants was an Austrian named Arnold Schwarzenegger.

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To Capture Your Value, You Must Communicate Your Value | Tim Williams.