How do you quantify a solution that is entirely service based? When you show the prospect the price, how do you show a return on their investment when they aren’t receiving a tangible good?
Anytime we show a price to a client we need to prove that the price is far less than then amount of value the client will receive. When value is greater than price the prospect will buy. But this can become incredibly tricky if the prospect has never used a service like yours before, or perhaps up until this point they have done your service in their business for free.
A great example is companies that are trying to sell social media agency services. Most companies start out by completing all their social media in house on their own. Prospects will often look at this as a “free” service they have been able to provide themselves for years. Why then would they need to pay someone to do something they have done for free for themselves?
The best way to show value is to look creatively. What is the value of the person’s time that is doing the social media in house? Break down their hourly wage based on monthly revenue. Find out how many hours they devote to social media, and show them a savings or a break-even based on what your company will charge.
Take it a step further by showing them the potential revenue the prospect can bring in if you were able to sell a small product online. With a historic or predicted conversion rate you were able to provide your clients, you could say that a “2% conversion for a $10 product would bring you in $X”. If that additional revenue brought in is greater than the cost of your services, the client will be more excited about moving forward.
The prospect will then be able to compare their “free” time to your solution. Ensure they understand that their time isn’t really free. It should be better spent on revenue generating activities, or other visionary, value-add, tasks within the company. Then compare it to the cost of your services PLUS any additional revenue you can help bring in for the client.
For even more tips and tricks I use check out my website at http://KimOrlesky.com/courses and see what others had to say about my Cold Calling Fearlessly course.
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