The Pricing Dilemma in Consulting

Price serves as the medium through which transactions occur, intertwining both mechanical and psychological elements.

When I first ventured into consulting, I was anxious about attracting clients, which led me to set my fees at the lower end of the spectrum. Surprisingly, this strategy did not result in rapid client acquisition. In fact, I often lost clients just as quickly as I gained them. It was perplexing; they seemed reluctant to spend even a moment longer with me.

Frustrated, I decided to seek feedback from a client's Marketing Director. Over coffee, he expressed surprise at my inquiry, stating, “No freelancers have ever asked me for feedback before.”

This was my first warning sign.

He continued, “I had no expectations of your work, Aldric. We were merely looking for freelancers.”

This marked the second red flag.

He added, “The team didn’t view you as a consultant because you were priced so low. You have the skills, but it’s time to adjust your rates.”

This feedback hit me hard, like a wake-up call.

Transforming Your Mindset for Success

“People treat you the way you treat yourself. When you undervalue yourself, they will too.”

― Michael Bassey Johnson, The Infinity Sign

In consulting, the focus is on quality—quality of service, products, and thought leadership.

Quality, in my practice, means the ability to address complex client issues. For instance, in a recent engagement, a client was struggling with stagnant revenues and customer growth.

Upon investigation, I discovered that the organization operated on a flawed assumption: they believed their revenue issues stemmed from a lack of customers.

I challenged this perspective by proposing a shift to a subscription model for their laundry services, allowing sales professionals to promote additional services without pestering customers for repeat purchases. This strategy worked, resulting in a 20% revenue increase within six months, even as their customer base remained unchanged.

The CFO was thrilled. As our consulting engagement concluded, she asked for an extension, but my schedule was full for the next three months. To my surprise, she insisted I return afterward, offering a 20% increase in contract value by day’s end.

This experience emphasized a vital lesson: clients recognize and reward the value you provide, regardless of the price.

Shifting Your Perspective: Affordability vs. Cheapness

Affordability is subjective and often influenced by client perceptions.

Your work's quality should guide your pricing strategy. Clients can discern genuine expertise.

As my mentor advised, “Clients will invest in solutions that alleviate their problems. Focus on addressing significant challenges, and you’ll find your services are seen as affordable, no matter the cost.”

Final Thoughts

Honor your work as a consultant. Clients will reciprocate with the respect you deserve.

When you undervalue yourself, you attract clients who view you as cheap, leading to mundane assignments rather than exciting opportunities.

Reflect on your consulting fees. Are you undervaluing your knowledge and experience? Are you attracting the types of projects you want? What impression of your work quality are you conveying to clients?

Take the time to contemplate these questions. By doing so, you will know how to elevate your one-person consulting practice.

About the Author:

As a content contributor, I share insights drawn from my experiences in daily life and business. Our life experiences shape our unique perspectives. Feel free to connect with me on LinkedIn and Twitter!