If you see bending your knee on the field at a football game as a peaceful act of protest protected by the First Amendment, then you side with the NFL. If you see that same act as a sign of disrespect to the flag, the country, and to the military men and women overseas, then you side with Trump supporters. It’s all perception. In selling and presenting, as in the news, different perceptions frequently arise, particularly when it comes to the subject of price. If your fee is seen as a burdensome cost, it is unlikely you will close your sale. If it is seen as a worthwhile investment to achieve a desired outcome, the business is more likely to flow to you. Here is one of the best ways to turn cost into value for everyone’s satisfaction.
Do the Math
Example 1. You sell a product or service, like advertising, marketing, social media, that is meant to generate revenue. Ask…
- What is the dollar value of a new customer in the first year?
- What is the average number of years a customer will stay with them?
- What is the cost of replacing a customer?
- What percentage of their business is referral from existing clients?
For example, if your fee is $X and the value of a new client in the first year is $3X and over a lifetime $6X and they get on average one referral per existing client, that is another $6X, which is $Multiple X over time, etc., then your fee of $X looks incredibly reasonable, if not downright inexpensive, for the bottom-line growth they will experience.
Always talk in the client’s industry terms, i.e., conversions for the digital world; fees and returns for the investment world; rack rates for the hotel industry; back office/front office for the securities world; etc.
Example 2. You sell a product or service that reduces some factor, like new hire onboarding time or trade reconciliation errors. Ask…
- How long does it take to do XYZ now?
- What does this cost in terms of (lost business, missed deadlines, client satisfaction, client turnover, overtime, etc.)?
- What would savings in these areas mean in terms of revenue, productivity, head count, etc.?
Similarly, if your fee is $X and they are losing $Multiple X because of the existing situation, they are able to “see” your fee as a necessary investment instead of a burdensome cost.
What They See is What They Think
Help them “see” value. It’s a bit like the famous vase/faces optical illusion in this post. What do you “see” when you look at it: the faces or the vase? What do your clients “see” when they hear your fee? Cost or Value?
Anne Miller
Words Matter – Make What You Say Pay!
Random Recommendation
Uncomfortable speaking in public? Do what Virgin CEO Richard Branson does!
Make Sure Your Presentations are Perceived as Winners!
Call today for individual coaching or team workshops and learn how to turn information that tells into a sto
ry that sells. 212-876-1875 amiller@annemiller.com
“Anne and I recently worked together on a speech I gave at a large conference. She helped me turn a series of somewhat interesting points into an expertly crafted, compelling and actionable story. Together, we built a storyline with attention-grabbing headlines. We worked and re-worked the language, making sure every word was important. Finally, Anne coached me on the delivery. The result was so exciting – I’ve never been so well received in a speech before. Thank you, Anne!” Kate Griffin, Vice President, CFED.org