The joy of pricing
How to put the fun into discussing fees with your client
“It was fun”
A couple of weeks ago I helped a recruitment agency launch their new pricing model. As you can imagine, I was keen to hear what consultants thought of their new approach.
The first consultant I spoke to replied, “It was fun.”
Now I hope you get great pleasure from doing your job, but I’d hazard a guess that you wouldn’t describe the experience of discussing your fees with your clients as ‘fun’.
Here’s three reasons the right pricing model is so enjoyable to talk about with clients.
Reason 1: You offer choice
One of the most powerful pricing models is the ‘Good Better Best’ approach. We see it all the time as consumers, in everything from coffee cup sizes to aeroplane tickets, and for good reason - it works.
When you offer your clients a choice of services, you’re more likely to present an option that meets their needs. By contrast, a single option (“I can fill that role for you”) is usually a middle-of-the-road solution - and that isn’t fun for anyone.
Reason 2: You’re consultative
By introducing a choice of services, you’re starting a conversation with your client about what they need from their recruitment process. And because you’re the expert, they’ll ask you for advice on which approach they should take.
Rather than pitching hard to win their business, you’ve turned into a consultative partner who can advise them on the best process for them. Which is a much more fun place to be.
Reason 3: Your prices make sense
Recruiters often struggle to justify their price to clients. Perhaps the best (i.e. worst) example of this is the instant drop from 25% to 15% rates the moment the client questions the rate.
When you offer a range of services, at a range of prices, you’re telling your client that the price relates to the level of service. Pay more, get more. It makes sense.
If you want to enjoy talking about your services, simply reply to this email and I’ll explain how I can help you.
Jon
P.S. When I ask recruitment leaders about their pricing and negotiation, they usually mention another F-word: ‘fear’.
They tell me even highly experienced consultants - who are clearly experts in their sector - are afraid of pitching prices to their clients.
It makes sense. After all, we’re beaten down on price again and again (and then some more). In fact the more experienced you are, the more you’ve been beaten down on price.
But there is a better way. A way focused on value, not cost. A way that feels more consultative. More justified. More… fun.
If you want to enjoy talking about your services, simply reply to this email and I’ll explain how I can help you.