Great comments, I agree with many of the things you are writing!

But I have more to share, and I think this is important.

The reason behind this post is that several consultants build their prices based on assumptions. They look at what competitors are charging, they look at what clients “may” pay. And often they are so scared of losing a potential client that they charge fees that are not sustainable for them. They charge too little compared to the time and energy and experience and value they are putting into their work. That’s why so many excellent and valuable consultants have a hard time paying their bills. (It may sound funny, but that’s a tough reality).

So one of the first steps that I suggest is to look at what is your absolute minimum fee you need to charge, in order to cover your expenses and have a margin. That’s how much your time is worth TO YOU.

Then the second step comes: How much is your work worth TO YOUR CLIENTS?

How much money do your clients save by working with you? What happens if they don’t work with you? What short, medium and long-term impact does it have on them in terms of money, health, peace of mind, etc. How much is that worth?

Once you become aware of the true value of your work, you start recognizing how much your work is truly worth. This gives you the confidence and even the boldness to CHARGE WHAT YOUR WORK IS WORTH.

Why would you buy a Mercedes S-Class car, when a small Smart car can also take you from A to B?

People buy more than just the product and service itself. People buy experiences and emotions.

As a consultant, you provide a service that helps your clients not only save money, but it also gives them peace of mind. Not just now, but probably over the next 2 to 5 years. How much is that worth?

Imagine two consultants who charge the same “client-approved” fees. One helps the client set up an office in China within 6 months. The other one does the same, within 6 months as well. After a while, the first client starts getting a lot of troubles and is forced to close everything down and move away from China after 12 month. The second client’s office works fine and the business florishes. And this because the first consultant did not work accurately, while the second one worked very accurately and got the right people on board.
As a client, would you be ready to pay more for the second consultant?

Of course, as you say, this only works if the consultant is capable of transmitting this higher perceived value to her/his clients.

It would be great to read your thoughts on this!

Have a great day,
Myriam

1. Calculate what fee is YOUR CLIENT ready to pay

2. Calculate the annual income as per Myriam post (working hour x hourly fee – expenses)

3. Are you happy with this income?
a. If you are happy: keep the job
b. If NOT: find another job

Dramatic ah? Unfortunately it is true. No matter what you think, you are worth no more than your client perceive.

Increase the fee and you are out of the market. You will be forced to find another job in the worst moment of your career. So why you don’t change the job now?

And if you think you would keep your job, no matter what (I did), you can think to change the way you work. Maybe you want to take a time management course in this website (I am not paid any commission I swear) or rethink your offer or start giving interview on tv to became famous.

It could be quite frustrating at the beginning, but it is even more frustrating rising the fees only to lose your clients.

Work less, spend more time on rising your brand. Doing what you like usually works as well. If you are an expert and passionate, clients will pay more.

Because … no matter what the client think, you are worth more than your client perceive. You just need to convince him.

Cheers
Stefano

http://www.tlaw.eu

Thank you! I’m happy you found it inspiring and hope it will help you get started with your own Plan B.

All the best to you,
Myriam

thank you for the “plan B” article. Inspiring text, written in a simple yet efficient way. Concrete plans and steps are useful but this kind of reflexion (where we are/where we want to be) is a must and certainly the first step to everything.

best regards,
dora