GAG v2024

PROVE THE ROI OF THE SERVICES YOU OFFER

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To be successful in negotiating full fees and high margins your team must be extremely confident when you discuss the costs involved in utilizing your services.  What your client wants is a return on their investment (ROI).  You can’t charge full fees if you present substandard talent.

CLIENTS MAY TAKE ADVANTAGE OF YOUR TEAM IN THE FOLLOWING SCENARIOS:

  • They are not comfortable with the fees and bill rates they are quoting.
  • They believe that they need to reduce your fees and bill rates to compete.
  • Their willingness to negotiate too quickly.
  • They sense desperation which could lead to deep discounting.

Clients can sense uneasiness, and some will take advantage during negotiations. You are in business to generate profits, and your team is responsible for writing profitable business each time they are involved in negotiations.

TEACH THESE STRATEGIES TO STRESS THE VALUE OF YOUR SERVICE

The following eight strategies will help your current clients and prospects realize the costs involved in providing top talent is really a wise investment that provides a measurable return.

  1. Share expectations with your clients to show what they can expect from you.  This can increase the perceived value of your services.
  1. Quote your fees and bill rates with confidence. There is a tremendous shortage of top talent which increases the value of your services.  For temp and contract, stop quoting mark up, only discuss the budgeted bill rate.
  1. Position yourself as a consultant a vendor. When you are perceived as a consultant who is a workforce | workplace expert, your fees will increase.  Some firms are being offered 30-35% to gain the status of a “priority search” in this market.  Others are paying engagement fees up front or agree to work on a retained vs. a contingency basis.
  1. Understand the benefit to you if you generate increased profits. When you understand the WIIFM (What’s In It For Me), you will be more willing to get out of your comfort zone and master the art of negotiating. When you negotiate low, you decrease  your income.
  1. Don’t wait for business to be called in. Go out and get business from clients who will pay the profits you deserve.
  1. Target prospects you know represent your best business as a result of the revenue modeling you have conducted. These targets are more likely to pay higher fees.
  1. Focus a portion of your marketing presentations toward referred Referred business usually results in higher profits as well as quicker decisions.  There is an inferred level of trust and rapport because they were referred to you by someone they trust.
  1. Be cautious when clients provide you with “their” contract vs. signing yours. These documents are often not in your best interests.  Often, you can cross out sections of these contracts, initial them, and clients will still utilize your services.  This is something that you also need to discuss with your owner.

Share these strategies with your team and  when they implement them, you will increase profits while them increases their income – so it’s a WIN/WIN.