Over the last week, we’ve talked about how we have to price the customer, not the project. We’ve also looked at how letting the customer make trade-offs can help us close more deals and make more money.
Today, we will talk about how charging more money helps us win better clients and provide us with work we enjoy more!
What happens when we charge more?
I had a client who did website design and digital marketing.
She had one group of clients willing to pay $12K – $20K for a site build (that was their value). The sites were straightforward, but getting the content together was always a battle. The projects tended to drag on for 6 – 9 months and usually ended somewhat contentiously.
She had another group of clients who were willing to pay $100K – $300K for a site build and digital marketing strategy to go with it. The sites came together quickly, but she had to manage a lot of technical details to satisfy the IT and compliance departments in the client firms. Those other departments were truly frustrating to deal with and often dragged the process out by 9 – 12 months!
I asked her which of these client types did she want more of? “Hands-down, I want the $300K clients!”
It was about more than just the price.
The clients who were paying more were also more engaged. They trusted her expertise and valued all her work to get things through IT/Compliance.
Even though the clients were challenging, it was “worth it” to her. Plus, instead of ending contentiously, they appreciated her help. Even at these prices, her work earned a definite positive ROI for the clients!
Clients who pay more are more likely to appreciate your efforts. They have a more significant expectation of value, so they tend to trust you more. This often creates better relationships for you and them!
Oh, and that client who started focusing on the more significant projects? Her business grew by 5X with only 50% more employees, and she sold the firm for 1.5X revenues!
What’s the moral of the story? Find clients with expensive problems who value your work — it’s not just more profitable, it’s also more fun!