A business
coaching article:
Customers want you to
ask
for the money.
by Cathy Goodwin, Ph.D.
Many years ago, I was the
one starting a small
business. I ran a part-time resume service out of my New York
apartment. One client showed up on time for her first appointment,
nervously clutching her notes.
"Can we just talk for
awhile?" she asked.
"No," I said firmly,
amazing myself. "If you want
me to work on your resume, there will be a charge. You can decide not
to hire me. But we can't just sit and talk."
I remembered this incident
several years later,
when I greeted a neighbor in our local coffee shop.
"I've got a friend
visiting," she said. "He's
thinking of starting a business and he wants to talk to you. You do
business coaching, don't you? We'll see you tomorrow when you walk the
dog,"
"I'd be happy to talk to
him for a few minutes," I
said, "but if he wants to work with me, I'll have to charge. This is
what I do for a living."
Customers
are rarely evil people who want to steal services. My neighbor
did not realize that consultants earn real money for "just talking"
about business.
Like most customers, she
had no idea what
she was
asking.
Coach Jane asked me to
make a few changes to her
website. In return, she offered "a couple of half hours of coaching or
something." After peeking at the source code of Jane's site, I emailed,
"This project will take two to four hours. Here's what I will charge."
Jane knew nothing of web
design (a mistake -- but
that's another article). She honestly thought I could accomplish her
goal in less than an hour.
Customers
bring their own experience to your service. One
veterinarian will clip your cat's claws after giving booster shots;
another charges extra. Some hairdressers charge for a conditioning
rinse or blow-dry; some say it's part of the service.
Customers
bring expectations when they move. Pricing practices vary
geographically. If your customer has just moved to your city, he won't
know what to ask. He'll just fume quietly when he sees the bill.
Finally, customers can be naïve.
Janet ordered artwork for her brochure. When
the designer offered an option for "one-fifty," she Assumed he meant a
dollar and fifty cents! Fortunately, she clarified the difference
before signing an order for one hundred and fifty dollars
Janet's designer was
uncomfortable talking about
money -- but not uncomfortable handing her a bill. Then it was Janet's
turn to be uncomfortable.
The
time for a frank discussion of costs and contingencies is before
you deliver the service.
A consultant once informed
me, on our second call,
"I rewrote your copy. That will be an extra fifty dollars." I refused
to pay and will never recommend her firm.
A
written schedule of fees and terms can avoid bad feelings. You
can always offer discounts or extras to cement relationships with loyal
customers.
And when you ask a
customer, "Would you also like
to have...." mention the cost. Otherwise, I believe, she has every
reason to expect it will be free.
Note:
After I
wrote this article, a building contractor pointed out the McDonald's
tactic: "Would you like fries with that?"
Well, if you're charging the same as a side of fries, you're safe!
But a building contractor, web designer, coach or consultant usually
prices on a different order of magnitude.
I can live with an extra
$3 but another $30 or
$300? Tell me first!
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