At a recent conference, one of the attendees, Dave (not his real name), said, “I really liked some of your answers at the panel this morning. How much do you charge to speak?”
I said, “Thanks. I charge based on several factors—”
He interrupted me and said, “No, it's an hour—or maybe, a half-day max. But not a full day.”
“What outcomes do you want?” I asked.
“No, I just want to know how much you charge,” he said.
Time and Materials with No Context
He's asking for a time and materials estimate when I don't know anything about the context: who wants the information, the outcomes they want/need, and where they are.
But I don't work by time and materials. That creates a terrible dynamic, where the client wants fewer hours or a reduced hourly rate and the consultant wants more. I create projects with the client so I can focus on our value-based outcomes.
I tried again. I said, “It really depends on what you want for outcomes, where the presentation is, if it's a workshop, a panel, or just me talking. I prepare differently for all of these, because I want to deliver the outcomes you want and need.”
“I just want to know how much,” he said.
I could see his frustration. And that meant he was not the economic buyer and would never give me the information I needed. So I gave him a Very Large Number and knew we would both be disappointed.
Later, I realized what I had done wrong. I missed a golden opportunity to both build my authority and our relationship. That relationship might even offer him a way out of these ridiculous conversations about cost when I don't know the context. (I hate when that happens.)
I could have related his question to problems I am sure he has right now.
Relate This Question to The Requestor's Problems
Notice that Dave did not ask me any questions about value. Nothing about the benefits—not the tangible, the intangible, or the peripheral benefits. (See How to Describe All the Value When You Want to Influence for a quick example of the various benefits.)
Since he persisted and this was a technical leadership conference, I could have answered Dave's question by turning around his question with the oh-so-typical estimation questions. I could have approached the problem this way:
- Let's take something I bet you encounter all the time. Do your managers ever ask you: “How long will your next project take? How many people or teams does it require?” If so, how do you reply? (That's a management trap. See Practical Ways to Lead and Serve (Manage) Others for much more information.)
- Then, do they ever ask you: “If I ask you to do it in half the time, will it take half the number of people or half the money?”
That relates his question to me with something that happens to him—and helps him realize that he's asking me something he can't answer either.
While Dave might have become more frustrated with me, I bet he would have stopped and we could have had a real conversation about his context.
However, he wasn't the economic buyer because he asked the cost questions.
These questions work because economic buyers rarely worry about the cost of anything. Instead, they worry about the value. Will the value be worth the cost?
Economic Buyers Worry About Value
Even if leaders don't know how to see the Cost of Delay, they know about it. (See the series that ends with Positive Effects of Using the Cost of Delay to Rank All the Work, Part 4.)
That's why I always create consulting projects where we focus on outcomes and value. Even if people want me to speak. That's because the outcomes drive the kind of presentation and how I present. I can:
- Offer a virtual one-hour presentation with an additional hour of Q&A. (I often separate the presentation from the Q&A so people can think through their questions and ask meta questions.
- I could offer that same content in-person. Then, I can add smaller/large meetings and do ask-me-anythings. Or meet with senior leaders about their concerns. Or facilitate further conversations.
- Sometimes, people need short or long workshops. It all depends on the outcome—the value—the client wants.
Each of these is a “talk.” And each offers different value for different people, including the client and me.
But I can't know what to offer with zero context.
Context Creates the Relationship
The more I discuss the context and the outcomes with the potential client, the more likely I am to create a valuable proposal and experience for the client. The client feels they got a lot for their money.
If you discover that your potential clients just want a number, as poor Dave did, you can be sure of these things:
- Dave is not the economic buyer. He might be the coach or technical buyer, but he does not have the ability to say yes.
- Dave's company treats him the way he is treating you. (Which is a total shame, because Dave is one smart cookie.)
- Unless you charge them a lot of money, they won't listen to you. Because they're so focused on what goes out (the money), they're not worried enough about what comes in (the value).
I missed that opportunity with Dave. But you can learn from my mistake.
Consultants: focus on the value you can create with a client. That value helps you relate and connect with the potential client. And relationship requires you understand the context and build a relationship.
This is one of an intermittent series of consulting tips.