May 11, 2017

How do you value price research?

What’s the value of research? Or planning? Or design?

These things seem harder to value price than stuff that directly affects the bottom line, but really they aren’t any harder.

(NOTE: see my previous messages about tangible vs intangible benefits)

The way to determine value of anything you offer to clients is simply to ask the client why they want it done at all. (i.e., try to talk them out of hiring you with a Why Conversation)

Examples:

• If you’re a software architect, you’d ask, “Why not skip the architectural phase?”
• If you’re a research scientist, you’d ask, “Why not proceed without doing research?”
• If you’re a branding consultant, you’d ask, “Why not do the logo yourself?”

If they answer with some form of

“I don’t know.”

...then there’s no value.

If they answer with some form of:

“Because [VALID BUSINESS REASONS]”

...then there is value (and you can estimate how much).

Not all clients will place the same value on your expertise. Ideal clients will value it highly.

PRO TIP: It’s easier to find clients who value your expertise than to convince ones who don’t that they should.

Yours,

—J

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