A few years ago I was working up a proposal for a prospect. This particular proposal was for designing a new accounting system and documenting the process. This type of work is actually pretty easy for me and I love doing it (yes, I’m a nerd). I decided what I would charge for the project and put the proposal together. And then I presented it to my “Value Council.” What is a Value Council? For me it’s a group of professionals that help me construct valuable proposals and price them accordingly.
When I first started my business I had a hard time pricing new projects. It was easy to get in the trap of thinking about a price because the work is easy, it may not take long to complete, or I’d done this this type of work many times before. But my thought process was wrong. It’s not about ME. It’s about the CUSTOMER. A value council can help you see that, and help you price for it.
So how does it work? I meet with my value council before I send out a new proposal. This can take anywhere from 15 minutes to 1 hour, depending on the complexity of the project. Meeting with them became very valuable because I was forced to answer questions like:
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If this work is easy (like I said above) why are they hiring you and not doing it themselves?
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Do you think the prospect cares if it takes you 5 hours or 20 hours? No! And just because you can get it done faster doesn’t mean it should be cheaper. They are buying your value, not your time.
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Since you’ve done this work before, don’t you think that gives you more knowledge to serve the prospect better? If so, shouldn’t they pay you for that knowledge.
Having someone make me answer those questions helped my business tremendously. They have helped me see the value in what I do AND get paid for it.
I would highly recommend every business owner forming their own value council. Consider asking your CPA, mentor, or someone you trust. Then see how your bottom line thrives!
If you found this valuable and would like more information contact Joy at joy@lizottecpa.com