Over the past year or so I have become frustrated with prospects who evaluate whether they will hire us by asking how much we charge by the hour. Yikes! Without any embarrassment, I will say that I am one of the most knowledgeable ACT! consultants in the world. My qualifications are unequaled in the industry. Our consultants have been with Cornerstone (and certified by ACT!) for a minimum of 10 and up to 20 years and have helped hundreds of all types of companies be successful in getting the most out of ACT!. Our experience and knowlege means that we can work with clients faster and offer a more complete and satisfactory solution. Yet we are many times still asked about (and evaluated on) our hourly price.

Are they price conscious or value conscious?

This week I am attending a private workshop with 11 other consultants from various locations throughout North America. We have banded together to work with 2 experts (Ed Kless and Ron Baker - author of Pricing on Purpose) to help us redefine how we can provide amazing service to our cients that truly helps them transform their business. So for five days we are wrapping our brains around re-engineering our businesses. We are focusing on changing from an uncertain hourly-based pricing model to a customer-friendly pricing model for each of our businesses. The goal is to work carefully with our clients to arrive at individualized, customized pricing for specific services. Most consultants work by the hour. While Cornerstone has used this method in the past, I know that a better method of pricing exists in the form of what is known as “value pricing.” 

I want to change because charging by the hour tends to focus our thoughts on time and procedure instead of your objectives and desired results. After over twenty years in the business, I believe that most customers care about how they are served and about the results that are being achieved rather than what amount of time was spent. I'm sure that many believe that the billable hour method creates incentives for unnecessary procedure and increased expense. I believe the value pricing method is the method of the future from a client satisfaction standpoint. So, my goal is to determine the best way to provide a kind of price for each of our services so that

• our customers reach their goals,
• without any financial suprises,
• are delighted with results that can potentially transform their business, and
• neither of us have to watch the clock.

With a model like this, we both win. Our customers get the results they were dreaming of at a price we agreed upon prior to the start of the product. We get paid fairly for our services, as well as having the satisfaction of seeing our work make a dramatic difference in their busines. No hourly bill. Consulting the way it should be. 

I'm drinking the Kool-Aid.