If….

- You do great work at bargain rates and are not appreciated.

- You see less talented, less caring, more costly competitors getting the clients and fees you deserve.

Read on.

By Scott Channell

Bumped into a lawyer friend of mine recently. "Good Garry" related a common and totally avoidable story. A broke old school buddy had approached him to handle a difficult adoption matter. After 80 hours of effort to help an old friend in a jam, and receipt of a token payment of $50, his friend called him and said he had a "chance" to have another lawyer represent him for $2,500.00 and could he immediately send the file across town to "Moneybags Malone".

This all too common scenario suggests a few common fantasies embraced by overworked underpaid service providers. Let's review, understand and learn 3 strategies to avoid this from happening.

FANTASY #1: A great job done at a low rate will be recognized, appreciated and rewarded with additional business and referrals.

FACT: Effectively selling your services and effectively delivering your services are two totally different matters. In fact, it is best if you conceptualize them as two totally unrelated matters. More below.

FANTASY #2: Being quickly and easily available is always a good thing.

FACT: Scarcity makes you more valuable. Potential clients desire you even more.

FANTASY #3: People who tell you they are "broke" actually have no money.

FACT: Mostly, what is being said is "I have no money I am willing to give to you", a big difference.

SELLING YOUR SERVICES IS ALMOST TOTALLY UNRELATED TO THE PROFESSIONAL COMPETENT DELIVERY OF YOUR SERVICES.

Remember, people decide what you are worth before they hire you. Before you start working for them, the client has formed a perception of your worth, and will continue to see you through that filter. Clients will think of you consistent with that perception, which is difficult to change, regardless of how great a service you provide in fact.

We are socialized to believe…

Those who get paid the most are the best.

Those who work for less are second rate.

This is why it is unrealistic to think that once hired at a reduced fee, that you will get an additional engagement at full rate. When the client has real money to spend, or they are in a bind and need expert help, they will typically seek out and spend their money on those "worthy" of their investment and confidence.

This is why my friend lost out. He had established his worth by working for nothing. When his school buddy had money to spend, he chose someone who didn't work for nothing… someone "worthy". I will give you a few strategies to work at cut rates without cheapening yourself below.

THE LAW OF SCARCITY: CLIENTS PLACE MORE VALUE ON TIME THAT IS IN DEMAND.

Makes sense. If someone has superior skills they are in demand, busy, and not always easily accessible.

That school buddy had only a "chance" to hire that other lawyer. That perceived lack of access increased the perception of worth.

Moral: Even if you are twiddling your thumbs and spending hours staring at the phone, help the client to perceive you as valuable… linger over your calendar trying to fit them in somewhere, or explain how fortunate you have been in business and how you have so much to do you would be concerned about taking on a new matter.

MANY PEOPLE WHO TELL YOU THEY CAN'T PAY YOU FULL RATE, ARE REALLY TELLING YOU THEY ARE UNSURE ABOUT YOUR VALUE.

I learned this lesson well 25 years ago. In the interests of humanity (and to keep my landlord happy) I would cut rates to those who couldn't afford full ticket for my services. But after seeing many of them start to drive new cars, jet off to exotic vacations and even buy houses, I realized that I had it wrong.

They were hesitant to pay me as they did not full appreciate the value I had to offer. So I evaluated and restructured my initial client interviews to fully and effectively communicate my full value well before the issue of fees ever arose.

I asked them good questions to demonstrate my knowledge, referred to great results previously achieved, the people I knew professionally, related testimonials received by previous clients, explained all that had to be done to achieve the result they wished, made note of how I handled things differently than my competition, and shook my head very slowly… as I explained that my calendar was already full… and I didn't have much time. An Oscar worthy performance.

If they doubted my value walking in the door, they soon had no doubt. Few dared to suggest that someone so expert and in demand should work at a reduced rate.

A STRATEGY FROM SCOTT TO COMMUNICATE VALUE WHEN WORKING ON THE CHEAP.

Always give your client a bill at the full rate. Show a discount if agreed upon. Make note of the fact that payment is due when able if that is your arrangement. But always bill the client at full rate so they can see your full value and do it at regular intervals.

The saddest part of my initial example is that "Moneybags Malone" is a borderline incompetent uncaring service provider who is more expert at manipulating potential clients perceptions of the value of his services than actually handling their matters.

Don't we all know too many of these "Pied Pipers" and isn't there a lesson to be learned from their existence? The effective selling of services is totally separate and distinct from the effective delivery of services. We all should strive to be superior at both.

Best wishes for marketing success,

Scott Channell

copyright 2004 Scott Channell