(Free) Breaking The Time Barrier

[Andy Black]

A few people have mentioned this one recently and I read it last night.

It's only an hour to read, and covers value versus cost based pricing.

www.freshbooks.com/ebooks/breaking-the-time-barrier

What's your biggest take-away?

What will you different going forward?

​

 

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[Almantas]

Thanks Andy, for sharing this great book. If you find any other relevant books like the one you just shared, please let me know! My takeaways:

Importance of a fixed fee based on value

Instead of charging per hour consider charging a fixed fee that represents the value of the impact your service delivers. The value should be based on the impact your service creates for your client's business, for example: your designed website will result in 100k more annual sales. Fixed fee based on value means you're selling value instead of a time.

Cost vs Value

Trustworthy clients rarely care about costs. What they do care about is the long-term monetary value your service provides, so that's what you should be asking them to pay for. However, there will be grinders who prioritize costs over value no matter what - such grinders will be weeded out if you follow fixed fee based on value.

Before taking a project have a clear understanding of your client's needs

Most clients do not understand what value your service provides, so have a professional conversation with your client about their business needs and priorities. Identify what monetary impact your service will have for a client and adjust your fixed fee accordingly. Plus, by exploring client's business and how your service can provide most value, you will make client trust you and perceive you more as a friend rather than a desperate salesman. To put it simply, build high-value relationships with your clients, because it will play a huge role in helping you provide service that helps your clients reach and possibly exceed their company financial goals and put more money in your pocket as a result.

There was a lot more of delicious wisdom syrup inside of that book, so I highly suggest everyone to read it!

 

[Andy Black]

I was advised way back in 2009 to find out a.s.a.p. whether the prospect in front of me sees the value or the cost in what I do.

If they see the cost, then disengage as fast as you can and keep moving till you find someone who sees the value.

Someone who just sees the cost isn't going to change. Don't waste your breath.

Sales is a screening process.

 

[Get Right]

Nice read, really hits at helping you understand how you are providing value.

Thanks!

 

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[Almantas]

I was advised way back in 2009 to find out a.s.a.p. whether the prospect in front of me sees the value or the cost in what I do.

If they see the cost, then disengage as fast as you can and keep moving till you find someone who does see the value.

Someone who just sees the cost isn't going to change. Don't waste your breath.

Sales is a screening process.

Author hints that many clients are misinformed and blind when it comes to realizing the potential your service represents. Would you say that spending some extra time on a client in order to properly explain him what value your service provides would be considered as a waste of time?

 

[Andy Black]

Author hints that many clients are misinformed and blind when it comes to realizing the potential you service represents. Would you say that spending some extra time on a client in order to properly explain him what value your service provides would be considered as a waste of time?

Gosh no, it's not a waste of time at all.

It's up to me to show the value they will get, and paint a picture of how we get there too.

They have to be able to visualise it, and see how it can work for their situation.

The giveaway is when they ask the costs *before* we've discussed what they need. I consider that a red flag. That person is now already in my "sees the costs" box and I'm ready to pull the chord.


The best conversations I've had have often been quite brief. We chat. I find out whether I can help them. If I think I can, I describe what the end result could be. I also describe the process of getting there.

I'm looking to see if their eyes light up. I'm looking to see the cogs whirring as they visualise what that could do for their business.

If they THEN ask about the costs, it's because they're trying to work out if they can get a positive ROI.

If I have to educate them on spending more to make more then it's a lost cause and I'll politely back away.

Just my 2c. I don't even consider myself a salesman, but someone trying to help them. That could be why I do quite well at it.



EDIT: Also, I'm pretty sure I price too low, so this is a work in progress for me too.

 

[Nicoknowsbest]

Price, value and cost:

The key to sell your services successfully is to make people see the value in what you deliver, and not the cost.

Pricing your services based on the impact on your client's business is a game changer. When I started out, I was only competing on price, just to keep the momentum going. I was stuck in the "vicious circle" within a week, jumping from one "low-end" job to another and dealing with "low-end" mentality people.

Lesson on pricing I live by: don't overthink it, put it out there and get it wrong. I got it very wrong and finally got why.

Never compete on price.


Conversational selling:

These exploratory talks are great. This is what genuinely caring about others and helping them looks like.

I came home from a meetup of local business owners and startups last night with a wallet full of business cards, because I cared.

When approaching people, I always let them talk first.

I listen.

I try to see where they could need help. When I identify a pain point, I offer to help, without expecting anything in return.

Now, the conversation shifts and I explain what I do and how it could help them.

I give them some free taste, make some suggestions.

Most likely, they ask: "Can you do it for me?"

I get my foot in the door with offering to do their logo/website/etc., but could end up doing a whole package for them.


Moving from "just another guy doing XYZ" to becoming the "guy to go to for XYZ":

The mindset described and the approach of becoming the "go-to-guy" for specific skills in your local area will give you a jump start.

The dog walker in the book is a great example.

This is how you differentiate yourself in a competitive market and avoid becoming a commodity.

 

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[Tobore]

I was advised way back in 2009 to find out a.s.a.p. whether the prospect in front of me sees the value or the cost in what I do.

If they see the cost, then disengage as fast as you can and keep moving till you find someone who sees the value.

Someone who just sees the cost isn't going to change. Don't waste your breath.

Sales is a screening process.

It's truly a great book, Andy.

WHAT I LEARNED:

I liked the book's "value over cost" view. It's very similar to the "benefit over feature" view in copywriting.

It's truly remarkable.

For me, it helped me broaden my perspective and better position my offers. Here's an example:

Say you're a graphic designer, instead of thinking, "I'm a graphic designer" and I "design logos" for companies.

you could be: A pharmacy industry branding expert" who helps pharmacies create "recognizable brands" in 6months or less.

- This differentiates you from everyone else who design logos.

- It increases your perceived value.

- It helps you think of more ways to make businesses in that industry and turn you into a sort of consultant/expert.

ON CLIENTS:

Currently, I'm working with a certain client who, I think, sees only the cost. I've screamed my lungs out trying to show him how much he's leaving on the table.

It seems some business owners won't take necessary actions even if it could save their business.

Nevertheless, if you're brand new, I believe it's best to just find a way to give a free/*holy shit* offer if they continue to shut their eyes.

You could ask for a certain percentage to cover the cost of production (eg: hosting/domain/template etc.)

For new agencies, one half-hearted client helped/converted into a happy client, is better than none.

But as with any relationship, walk away if anyone refuses your best offer.

 

[ZF Lee]

The book did have some good ideas on mantaining pricing stance. But I felt that Slowlaners do quite the same thing. For example, professionals such as surgeons charge high fees, and that is well deserved as cutting into people's bodies is risky. Lawyers charge at high magnitude as court cases can go dirty. The stance of the book still requires the individual's presence....how should we mantain a Fastlane automation to disengage from time?

 

[Tobore]

The book did have some good ideas on mantaining pricing stance. But I felt that Slowlaners do quite the same thing. For example, professionals such as surgeons charge high fees, and that is well deserved as cutting into people's bodies is risky. Lawyers charge at high magnitude as court cases can go dirty. The stance of the book still requires the individual's presence....how should we mantain a Fastlane automation to disengage from time?

Every service follows a set of repeated processes.

I believe one way to remove time from a service is by focusing on your core competences and making several packages your clients would pay monthly for.

You have to totally avoid any customization for each new client - except its a package on its own.

Note that doing the above could require you to hire more hands and/or build a team.

 

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[ZF Lee]

Every service follows a set of repeated processes.

I believe one way to remove time from a service is by focusing on your core competences and making several packages your clients would pay monthly for.

You have to totally avoid any customization for each new client - except its a package on its own.

Note that doing the above could require you to hire more hands and/or build a team.

A package on its own....yes, something replicable.
McDonald's serves the same burgers. Microsoft produces the same computers. That would be easier than trying to be the man and his son with their donkey...

Yes, building a team. Scaling up once the market gives a good verdict. Unfortunately, just because it's viable doesn't means that everyone is doing it.

'Just because it is common sense doesn't mean that everyone is doing it.' Michael Masterson, Ready, Fire, Aim.

 

[Tobore]

A package on its own....yes, something replicable.
McDonald's serves the same burgers. Microsoft produces the same computers. That would be easier than trying to be the man and his son with their donkey...

Yes, building a team. Scaling up once the market gives a good verdict. Unfortunately, just because it's viable doesn't means that everyone is doing it.

'Just because it is common sense doesn't mean that everyone is doing it.' Michael Masterson, Ready, Fire, Aim.

You get the point, eh.

 

[ZF Lee]

You get the point, eh.

Now I will have to put it in action before a wantrapreneur dagger stabs me :/

 

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[Andy Black]

Here's one of many ways to start divorcing your time from your revenue when you're providing a service:

• www.thefastlaneforum.com/community/threads/andytalks-to-random_0-about-growing-a-local-lead-gen-business.70852

@Random_0 also talks about charging 3x the price for doing the same work.

 

[B V Marlon]

EDIT: Also, I'm pretty sure I price too low, so this is a work in progress for me too.

I think that's a natural tendency, it's something I know that I've done in the past.

Thanks for posting the link to the book, it's definitely opened my eyes to several possibilities.