Ohhhhhh ... interesting. Now I see why I never heard back from a potential client I submitted a proposal on workflow redesign. I had billed such a high figure following the value-based fees route, without taking into consideration the fact that I wasn’t the only one who could do it. The client glean insight from my proposal and consulted someone else. Hard lesson for me there. So the message is deep: do not think only in terms of the quality of the skill you provide, also put into consideration the scarcity of that skill. And bill accordingly! This lesson right here transcends consulting. It is at the heart of any value exchange!
We hope you will enjoy the "Consulting Fees | Why Value Based Fees Rarely Work in Management Consulting | Consulting Business" episode. Let us know what you think and what future topics you recommend we cover in the upcoming episodes for this series.
Thanks for sharing! I have agreed that the value-based pricing only works if you bring 'specially unique' insight to clients and they are willing to pay for it. Similarly, how much you are based is not only the function of your skill but also the function of supply and demand of market. In addition, I also find it's important to have passion for what you do and have mentor to share with you such insights. Love to hear more about the insight in consulting/industry business in the future. Great content, FC!
Thank you for sharing this. I hadn't thought about this way of thinking or looking this, in this way. This really gives me something to think about. Thank you.
@@firmsconsulting You're welcome. The one question that I have for you though - for those that are looking to become consultants or those who would work freelance -- what would your advice be in regards to dealing with clients who don't pay? Suppose that you are trying to implement a ROI or value-based compensation structure as a freelancer, so you try to sell your consultancy as being a value proposition to them, do the work, and then you don't get paid -- beyond legal tort laws, how else would you suggest to deal with a situation like that? Would you suggest that there would be clauses in the contract such that in the event of non-payment, you might, for example, take ownership of the original IP? Or what would you suggest in regards to how you might handle a situation like that where a client isn't paying you for the value that you've brought to them? Thank you.
Same here Ewen. I had totally ignored the economics of the market (supply vs demand) and it made me lose work I most likely would have gotten had I taken into consideration the concept of supply vs demand.
Ohhhhhh ... interesting. Now I see why I never heard back from a potential client I submitted a proposal on workflow redesign. I had billed such a high figure following the value-based fees route, without taking into consideration the fact that I wasn’t the only one who could do it. The client glean insight from my proposal and consulted someone else. Hard lesson for me there.
So the message is deep: do not think only in terms of the quality of the skill you provide, also put into consideration the scarcity of that skill. And bill accordingly!
This lesson right here transcends consulting. It is at the heart of any value exchange!
Well said.
Thanks for sharing your experience and how this FC episode helped you learn a new dimension - scarcity of the skill!
Thanks for sharing, market avalability is definitely worht to consider when setting up your carreer plan.
You are very welcome, Jose
very true, supply and demand concepts we should learn for career planning!
We hope you will enjoy the "Consulting Fees | Why Value Based Fees Rarely Work in Management Consulting | Consulting Business" episode. Let us know what you think and what future topics you recommend we cover in the upcoming episodes for this series.
Thanks for sharing! I have agreed that the value-based pricing only works if you bring 'specially unique' insight to clients and they are willing to pay for it. Similarly, how much you are based is not only the function of your skill but also the function of supply and demand of market. In addition, I also find it's important to have passion for what you do and have mentor to share with you such insights. Love to hear more about the insight in consulting/industry business in the future.
Great content, FC!
Glad you found this episode helpful, Fluorine.
thank you very much for the super helpful content!
Thank you for sharing this. I hadn't thought about this way of thinking or looking this, in this way.
This really gives me something to think about.
Thank you.
Hi Ewen, Thank you for your comment. Glad it was helpful!
@@firmsconsulting
You're welcome.
The one question that I have for you though - for those that are looking to become consultants or those who would work freelance -- what would your advice be in regards to dealing with clients who don't pay?
Suppose that you are trying to implement a ROI or value-based compensation structure as a freelancer, so you try to sell your consultancy as being a value proposition to them, do the work, and then you don't get paid -- beyond legal tort laws, how else would you suggest to deal with a situation like that?
Would you suggest that there would be clauses in the contract such that in the event of non-payment, you might, for example, take ownership of the original IP? Or what would you suggest in regards to how you might handle a situation like that where a client isn't paying you for the value that you've brought to them?
Thank you.
Same here Ewen. I had totally ignored the economics of the market (supply vs demand) and it made me lose work I most likely would have gotten had I taken into consideration the concept of supply vs demand.
Thanks for the episode!
You are very welcome, Thao
Very resourceful presentation. ..have learnt alot
Glad to hear that
Thank you for the video!
Glad it was helpful!
Interested episode, thank you for work!
You are very welcome
👍
Another FC episode filled with practical tips!