July 13, 2000
Decide who your clients are going to be when setting prices
Dr. Lynda Falkenstein
A: NOT MUCH. In fact, I think it's foolish and will soon cause you to lose money. Many otherwise naive professionals feel conscience bound to have sliding scales for their clients. Unfortunately, it costs you the same amount to deliver services to small clients as it does to larger ones. If you follow the practice of differentiated pricing, you'll soon be out of business.
It sounds to me as if your issue is not so much pricing as it is deciding who your clients are going to be and who they aren't. The "aren't" for you is the key.
Q: There are so many jokes out there about consultants. Do you have a suggestion how I can get people to take me seriously?
A: Tell them that the 1999 median income exceeded $175,000. To me, that's no joke! Secondly, and more importantly, the first step in being taken seriously by others is for you to take yourself seriously as a professional with a valuable service. If you don't believe it's so, don't expect that your public will.
Q: We are finally developing a company website with hopes that it will extend our reach in selling our services beyond this immediate locale. We are trying to do it "right" and I'm concerned that we make sure the right search engines will be working for us all the time. After all the time and money we're spending on this thing, I want to be sure it attracts lots more customers and earns its keep! Any suggestions you have for ensuring we get those search engines on the ball will be much appreciated.
A: Sit back. I don't think you'll like my answer, which is this: Contrary to popular opinion, the search engines aren't your website's best friend. In fact, I suggest that you build your website assuming they don't exist. Indeed, there are things you can do to up your ante that the search engines' spiders which regularly cruise the net for additions and changes will, in fact, find and tag your site. But, I believe, you are far better off spending time and money developing a system that gets the right people finding you.
A major problem with relying on search engines to get people to your site is that while many may show up, the vast majority are likely to be surfers. Surfers are rarely customers. For the most part, heavy reliance on search engines is similar to shooting crap in Reno. You can read all the books and try all the strategies to get your domain to come up first but it's still a gamble. I prefer strategies where the payoff is more predictable and the house odds are in my favor.
If you think I'm out of touch, consider Yahoo and Microsoft. They don't wait for search engines to point you toward their sites. Instead, they spend millions of dollars each year ballyhooing their names in print and non-internet media. Over the years, Bill Gates' public visibility has been far more significant for the company than any standard search engine.
The bottom line is, you've got to give people a reason to go to your website. Another reason to stay there. And another reason to come back.
Q: You frequently refer to "best marketing strategies cost the least." Since we spend tens of thousands of dollars every year in marketing, I wish you would give an example of what you mean. We would love to save $ in this department.
A: Thanks for the question. One of my favorite examples is what I call "middle-seat marketing." It works every time and I guarantee it won't show up in any Biz School curriculum. And of course, it's very simple. You just need a little courage (in some quarters known as chutzpah!). The next time you get on the plane, be sure you have reserved the middle seat. If you are a frequent flyer, the customer service people will do everything in their power to keep you out of it since most people don't want the middle seat and they will want to please you. Sometimes you will even get bumped to first class, lest they displease a preferred customer by putting you in the middle. But stay your ground. Sit in the middle seat where you have twice as much opportunity to talk to someone interesting--someone who might want your company's services or products. Plan to carry some eye-catching items so that those on either side of you can get a glance at what you do. If they don't pick up on how intriguing your work is, gracefully drop some promotional pieces. On their lap might be a bit much, but the issue is get the stuff out there. Too many business people keep themselves and their widgets wrapped up as best-kept secrets. You've got to let people know you exist. I've met endless number of fascinating people--and yes, significant clients in that middle seat!