Transcript ilene

Setting And Maximizing
Price On Your Consulting
Services
… A QualityWare Example
Ilene Butka, President
QualityWare Associates, Inc.
1279 Route 46 East, Building B
Parsippany, NJ 07054
T: 973-257-5515
F: 973-257-5516
Introduction
In business since 1994
 17+ years of specialized experience
 I love what I do
 I am extremely ‘good’ at it
 Consider myself to be ‘technical’… not a
‘marketeer’!
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I. Butka / QualityWare Associates, Inc.
Demonstrate, via examples…
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How I determine my price
How I determine my price structure
How I ensure my price is fair and competitive
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How I negotiate my price
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I. Butka / QualityWare Associates, Inc.
What Affects Your Price?
VALUE of your service
 DEMAND for your service
 TRUST you foster with the client
 Your REPUTATION
 Professional REFERENCES
 ETDBW
 Competition
 Economic Conditions
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I. Butka / QualityWare Associates, Inc.
My Service / Expertise
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Provide specialized consulting services to highlyregulated industries
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Government / Aerospace
Medical device manufacturers
Pharmaceutical manufacturers
Blood banks
Expert with quality standards, methodologies,
FDA regulations
Help clients interpret, understand and comply to
regulations re: development, test, validation, &
implementation of computerized systems.
I. Butka / QualityWare Associates, Inc.
How to Maximize Your Price #1
Communicate the VALUE of Your Service
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De-emphasize COST / PRICE; What do
you bring to the table?
– I provide 17 years of specialized experience
– I provide resources and experience client may
not readily have
– I provide client with no-nonsense, real
solutions
– I provide client with immediate, tangible
results
I. Butka / QualityWare Associates, Inc.
How to Maximize Your Price #1
Communicate the VALUE of Your Service
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Emphasize VALUE of doing business with you
– Get drug/med device to market quicker = additional
revenues, client beats their competition
– Address non-compliance weaknesses to lower risk of
FDA citations
– Reduce FDA review time so product gets released
quicker
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Emphasize RISK of NOT doing business with
you
– Time to market delays = lost revenues
– FDA citations = costly fines
– Noncompliance = consent decree
I. Butka / QualityWare Associates, Inc.
How to Maximize Your Price #2
Understand the Demand of Your Service
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“How much is your service worth?”
– Only what the client is willing to pay!
If your service is not needed, you will not
be able to sell your service…at any price!
 Suggestion: Be sure you are providing a
service that is needed!
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I. Butka / QualityWare Associates, Inc.
How to Maximize Your Price #3
Foster TRUST with the client
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$$ become much less the issue when…
– Client trusts you
– Client has confidence you will complete the
assignment on time / within budget
New clients – Fixed price to demonstrate my
ability to complete assignments on time / within
budget
 Existing clients – have a working history with me
and accept my T&M contracts
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I. Butka / QualityWare Associates, Inc.
How to Maximize Your Price #4
Build a Solid Reputation
Critical to small business longevity
 Your Reputation will follow
you…everywhere!
 Solid reputations bring you more clients
effortlessly
 Solid reputations
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– Add to your ‘value proposition’
– Justify your price
I. Butka / QualityWare Associates, Inc.
How to Maximize Your Price #5
Rely on Professional References
Critical to small business longevity
 Bring more clients…effortlessly
 Magically… Eliminates rate negotiations!
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I. Butka / QualityWare Associates, Inc.
How to Maximize Your Price #6
Be ‘Easy To Do Business With’ (ETDBW)
– A Definite ‘MUST’ in bad economic times
– Distinguishes you from your competition
– Demonstrate how you will SOLVE their
PROBLEM
– Suggest OPTIONS – Be FLEXIBLE!
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Don’t reduce your price; Reduce the effort
– If you are ETDBW, $$ is less an issue!
I. Butka / QualityWare Associates, Inc.
How to Maximize Your Price #7
Know Your Competitor’s Price!
Your price can be higher, but your price
needs to be (at least) close to your
competitor’s highest price
 Periodically, review:
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– Professional salary surveys
– Talk with other professional colleagues
– Investigate new opportunities to re-confirm
rates
I. Butka / QualityWare Associates, Inc.
How to Maximize Your Price #8
Be Flexible - Respond to Economy
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Despite currently ‘bad economic times’, I
have found that the following are mosthelpful to negotiate the best price:
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TRUST, TRUST, TRUST
ETDBW, ETDBW, ETDBW
Referrals, Referrals, Referrals
Emphasizing ‘Value’
De-emphasize ‘Cost’
I. Butka / QualityWare Associates, Inc.