How to Package and Price Consulting Services with Michael Zipursky
Nov 20, 2024In the latest episode of "Keep What You Earn," Shannon dives deep into the intricacies of packaging and pricing consulting services with Michael Zipursky. For those looking to scale and increase profitability, this episode is full of indispensable insights.
Shannon starts by emphasizing the importance of recognizing patterns in client issues. Michael explains how consultants can leverage these recurring problems to design structured programs or frameworks, a process known as productization. This improves efficiency and simplifies the expansion of services. Instead of creating custom solutions for each client, consultants can offer repeatable frameworks, which makes training easier and profit margins more predictable. Many large consulting firms have already adopted this approach to ensure consistent results and reduce administrative burdens.
One of the biggest challenges discussed is scope creep. As clients start trusting their consultants more, they often request tasks outside the original agreement, which can strain resources and affect the consultant's ability to deliver optimal results. Shannon shares her experiences of workplace pressure eroding both morale and profitability. Michael advises addressing scope creep by suggesting new engagements for additional work, complete with formal proposals that include pricing and timelines. This helps maintain project focus and allows clients to evaluate if their new requests are truly a priority.
Effective communication is crucial in consulting. Michael stresses the importance of having deep, meaningful conversations to understand client needs. This helps consultants shift from merely delivering services to offering transformative outcomes. Clients appreciate consultants who guide them in evaluating new ideas, making smart investments, and standing their ground on project scope. Such interactions lead to stronger client relationships and reaffirm the consultant's role as a trusted advisor.
Specialization over generalization is another key theme. Michael notes that many successful consulting firms started with a narrow focus before broadening their services. Shannon echoes this, sharing her journey from targeting the fitness industry to expanding to other sectors. Specializing allows consultants to add significant value, stand out in a competitive market, and achieve better business results.
Michael offers crucial advice on articulating value, an area many consultants struggle with. He points out that consultants often focus too much on deliverables rather than transformative results. The key is to shift from selling features and time to selling outcomes and impact, differentiating services in a crowded marketplace.
Charging based on time can limit scalability. Michael argues that focusing on value and ROI typically results in higher earnings and better differentiation from competitors. By engaging in value-based conversations, consultants can shift client perceptions from viewing services as an expense to seeing them as an investment. Shannon supports this with her own experiences, noting that articulating the value of intangible services leads to better client buy-in.
As the episode wraps up, Shannon invites Michael to share more about his work at Consulting Success, a platform dedicated to helping consultants build scalable, strategic businesses. Michael highlights resources available on their website, including a 32-page guide with popular articles and strategies, and encourages listeners to connect with him on LinkedIn for further insights.
Michael Zipursky specializes in helping entrepreneurial consultants grow profitable, scalable and strategic consulting businesses. After advising organizations like Financial Times, Dow Jones, RBC, and helping Panasonic launch new products into global markets, he started Consulting Success and has since helped over 1000 consultants from around the world in over 75 industries add 6 and 7 figures to their annual revenues. In addition to their coaching and trainings programs, over 45,000 consultants read his weekly consulting newsletter and over 50,000 download the Consulting Success Podcast each month. He's also the author of several books on consulting.
Website: https://www.consultingsuccess.com
LinkedIn: https://www.linkedin.com/in/zipursky/
YouTube: https://www.youtube.com/channel/UCcZvQqRud5hOIfHt62vpGmAb
What you'll hear in this episode:
06:11 Go deep first, then expand your expertise.
06:54 Specializing effectively targets necessary consulting clients.
12:39 Deep, meaningful conversation vital for buyer commitment.
13:55 Focus on value-based pricing for clients.
17:18 Balancing value vs. transactional work challenges perception.
21:47 Productization combines customization with efficient standardization.
26:19 Productization enables scalable, efficient team training.
28:00 Productization boosts profitability, clarity, and employee morale.
33:43 Evaluate priority of new proposal for client.
34:46 Evaluate resource needs; discuss project timing impacts.
40:21 Learned from mistakes, set boundaries, prevent repetition.
If you like this episode, check out:
Acquire Cheaper and Better Customers (Financial Priority Formula Part 3)
Lowering Your Price to Sell More?
Want to learn more so you can earn more?
Join Gusto today and get a $100 Visa Gift Card
Visit keepwhatyouearn.com to dive deeper on our episodes
Visit keepwhatyouearncfo.com to work with Shannon and her team
Watch this episode and more here: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ
Connect with Shannon on IG: https://www.instagram.com/shannonkweinstein/
The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
