Monthly Archives: September 2015

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Pricing Primer for Freelance Service Providers

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“The business world is driven by the desire to increase three elements: market shares, sales revenues and of course, profitability. Pricing is the key player in any strategy concerning the growth of these three goals.”   Mohammed Nosseir, Senior Marketing Adviser, Simon-Kucher & Partners, Middle East

Determining the pricing structure for intangible services provided is a real challenge for Freelance consultants. What is the value of our time and expertise in the open market? What if we promote our services, set the price and no one hires us? Should we lower our project fees? Can we ever raise prices?

Clients are motivated to spend as little as possible for the products and services that they require. However, they are known to pay premium prices when they “feel” that a particular product or service delivers exceptional value. That value can mean an expert solution to a business challenge; a long-lasting product that performs very well with little maintenance; the ability to meet a deadline; or other factors that have meaning to the decision-makers.

Often as not, different clients will have different priorities that define what is valued. It is the Freelancer’s job in the initial face-to-face client meeting to figure out what the client feels is important. That knowledge will achieve two objectives:

  • You will know the expectations that must be met (or preferably, exceeded) to justify a premium price.
  • You will know how to price, based on the time or other resources that will be devoted to meeting and exceeding client expectations and you will grasp the urgency of client needs, which impact your price.

Most likely, there are standard benchmarks and signifiers of high-value service in your industry and they should be incorporated into your marketing and operations, along with other value-addeds layered on as necessary. Knowledge of what competitors do would be most helpful as well, but it is very difficult to learn how competitors deliver their services or price them. Nevertheless, it is advisable to choose three or four to research. Visit websites to learn what services your competitors offer and how those services are described and packaged. Then, you can better identify potential competitive advantages for what you have and find a way to describe your goods.

It may sound like an obvious no-brainer, but part of your premium value-added that will be reflected in your pricing strategy should be your positive attitude and willingness to help prospective clients find the best solution to their business needs. Friendliness and the aim to genuinely want to offer good service go a long way in life and in business. Showing a good work ethic is likewise important.

For example when on an assignment, pay attention to emails. While I don’t recommend that one should be obligated to answer emails that a client dashes off at 3:00 AM (unless this is an urgent and high-revenue project), check emails through 10:00 PM and resume at 7:00 AM. If you can anticipate client needs, so much the better, They’ll think you’re a hero and will be happy to pay for the pleasure of doing business with you.

Step by step, client by client, focus on exceeding expectations on every project, building the trust and confidence that lead to a respected brand (reputation) as you do. You will receive referrals from satisfied clients (and you can also make referrals to your clients, enhancing your brand each time you do). Good brands create good word of mouth and that supports and justifies premium pricing.

As Mohammed Nosseir concludes, “Pricing has been, and will continue to be, the most complicated element in the marketing mix family…A proactive pricing structure will help companies…to maximize their profitability.”

Thanks for reading,

Kim

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Procrastination: Wrestling the Demon

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The Bible named procrastination as one of the Seven Deadly Sins, classified as Sloth, that is, persistently failing to do what one should do. Evil exists when good (men) fail to act. Entrenched procrastination most certainly has the potential to ruin one’s life and such procrastinators are able to adversely impact family members and colleagues as well.

Joseph Ferrari, professor of psychology at DePaul University in Chicago and a noted researcher in the field of procrastination, reports that the disorder takes several forms and that he and fellow researchers have identified two primary types:

1.) Chronic procrastinators, who are perpetually unable to complete tasks.

2.) Situational procrastinators, who delay taking action on tasks that are considered particularly loathsome.

Procrastinators are unable to learn from the negative outcomes of their avoidance behavior. That they have suffered previously from failing to fulfill responsibilities does not motivate them to get busy when the next important task appears. Procrastination is the “quintessential” breakdown of self-control, according to Ferrari and his fellow researchers.

At this point in the story, I would have liked to present a neat and clever solution to the problem, all artfully phrased to make me look smart. But I’m sorry to say that solutions for procrastination are weak. Situational procrastinators have the best prognosis and everyone falls into this category from time to time. The next time that you just can’t face up to doing whatever, set a personal deadline and find the discipline to adhere to it, so that you’re not frantically working to get things done. Just do it and move on.

But chronic procrastinators are a very tough nut to crack. I know this from personal experience, because many years ago I had a long-term relationship with such an individual. His inability to make good decisions, which included chronic malignant procrastination coupled with passive aggressive behavior, caused me to leave him. I guess he loved me, but not enough to get his act together. I will never get over the disappointment that he caused me.

Ferrari suggests that organizations can diminish the common tendency to wait until the last-minute to complete tasks by rewarding early action and de-emphasizing penalties for lateness, in the process shifting from the threat of punishment to the pleasure of reward and keeping the lid on stress along the way.

On a personal level, which is where the procrastination battle lives, Ferrari advises to refrain from enabling chronic procrastination…..”let the fridge go empty, let the car stall out. Don’t bail them out.” However, that approach to fulfilling responsibilities will sometimes adversely impact the other half of the couple and it is not always practical to allow that to happen. As I found out, chronic procrastinators are not good life (or business) partners because they do not hold up their end. You may have to terminate the relationship, because things are unlikely to get better.

If you are a chronic procrastinator reading this post, consider that we all have only so many years in life and it is important to get on with things. It is a given that sometimes we have to suck it up and do what we don’t like. But then it’s off your plate and you can think about the fun things.

Thanks for reading,

Kim

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Procrastination and Productivity

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Who among us has not allowed a deadline to approach because we just could not pull ourselves together and do what we needed to do? Some things we just hate to do. Sometimes, we can’t get started because we don’t know where or how to start. We fear that we are not up to the task. Other times, we really do have too many other important things on our plate and we feel overwhelmed. We fall victim to procrastination.

“What I’ve found is that while everybody may procrastinate, not everyone is a procrastinator”, says Joseph Ferrari, professor of psychology at DePaul University in Chicago and a pioneer in the study of procrastination. He goes on to say that (procrastination) “really has nothing to do with time management”. His research revealed that an inability to manage emotions is the root cause of procrastination.

When psychologists initially studied procrastination they adopted time and value as their metrics, asking “Why does this person not perform a simple cost – benefit analysis of doing what they must vs.ignoring their responsibilities”? Unfortunately some of us, and from time to time all of us, choose immediate and sometimes minor gratification over more significant rewards that pay dividends in the long-term.

So instead of going to the gym at 6:00 AM we lie in bed for another 30 minutes. When we might work out after work at 6:00 PM, we instead go out drinking with friends. We put off doing our taxes and sit around watching re-runs on television instead. Professor Ferrari and others feel that procrastination happens for two primary reasons:

1.) We put off the task because we are not in the mood to either start or complete it.

2.) We assume that we’ll be in a more appropriate frame of mind to complete the task in the near future.

Needless to say, putting off until tomorrow that which one should do today may bring on guilt, anxiety and defensiveness. To ease our consciences, we often make little bargains with ourselves and vow to clean up our act going forward (“If I go out tonight, I’ll work out for 90 minutes tomorrow”). That approach can work but for some of us, the avoidance behavior that is procrastination will kick in again and tomorrow there will be another excuse (“I have so much work to do, I can’t get to the gym and even if I do go, I’ll be too exhausted to do a good workout”).

Getting stuck in a procrastination pattern does one’s self-esteem no favors. Beneath the defensive attitude that may be thrown at those who dare question why you’re not doing what you should do is self-loathing. You feel like a loser because you know you’re screwing up and no amount of self-righteous denial can hide that fact from yourself.

Procrastination is not to be confused with positive behaviors such as caution, where you think first and weigh the possible consequences of moving forward to take action; pondering, when you examine a problem and discover solutions that you can expect will be useful; or prioritizing, when you assign a value to and rank your responsibilities and complete highly ranked tasks first and the least important tasks are done last, if at all. Procrastination represents a gap between intention and action.

Next week, we’ll look at common forms of procrastination and strategies that may resolve or ameliorate the problem.

Thanks for reading,

Kim

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Successful People Allow Success to Happen

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When you implement your fourth quarter Action Plan, be aware that there are some basic and necessary behaviors that you must adopt to create the conditions for the success of your plan.  It can be oh-so-easy to get pulled off your game by people and circumstances that make demands on your time, adversely impacting your energy levels and ability to focus as they do.

You must learn to be “healthy selfish” and strive to preserve your boundaries. Be prepared for some people to get indignant. You may even be attacked by those who feel the most entitled. It’s uncomfortable, but you’ll come to know who our friends are and are not. Consider the process a character development and leadership lesson.

Those who love and respect us give us space to do our thing. They touch base with us every once in a while. They step in to offer assistance and encouragement when we are in need. They never devolve into controlling and manipulative behavior.

I.    Just say no

If you are not able to take on a certain project or agree to a commitment, then respectfully decline. Perhaps you already have many irons in the fire and your schedule is filled. Perhaps you would rather take it easy for a while, resting and recharging your energy stores.

If a proposal doesn’t feel right, seems unorthodox or unsavory, you are not obligated to participate. Those who have vowed to sweet-talk (or arm-twist) you into this arrangement may become furious. Let them do just that. Then cut them out of your life. The last thing you need in your life are manipulators and bullies.

II.   Define boundaries

Everyone likes to be liked. We feel good when we help others and make them happy. But the price of acceptance does not hinge upon the “right” of others to violate our boundaries.  When you feel pressured or uncomfortable by a certain request, recognize that feeling as a sign that your boundaries are being violated.

Someone is attempting to “cross a line”.  Someone does not know his/her place, or role, in the relationship that the two of you are in, even if that someone is a parent or sibling. No one has a “right” to violate boundaries. Politely, but firmly and resolutely, push back and do not allow yourself to be bullied. If the violator persists, well, now you know who loves and respects you and who doesn’t. It can be a bitter lesson.

III.  Ask for it

What do you want? The sale? The assignment? Your team to work at 110% capacity? If you want it, then ask for it!

You must also be prepared to earn it, to demonstrate that you deserve the reward. If you expect your team to work at 110%, then you must work at least that hard and more. If you want the sale or the contract, then show the client why you deserve it and how hard you’ll work to earn it and then fulfill or exceed all expectations when it is awarded to you.

IV.  Release the negative

Mistakes are made and bad things sometimes happen. You may feel hurt and maybe resentful, too. Maybe you should let yourself wallow in those feelings for a while because after all, you are human.  However, you cannot allow yourself to remain stuck in the quicksand of negative feelings. Take a deep breath and then let it go as you step forward toward your vision of a successful future. You have goals and an action plan to help you reach them. Let that propel you out of the muck of resentment. Success is the best revenge.

V.   Walk, don’t run

OK so you’re on a roll, you have a timetable, you want to get things done. This is a one-page, 90-day action plan you’re working through, you say! Patience may not be considered a virtue and explaining things twice becomes an aggravation. Due diligence can happen some other time?

Stop. Breathe. Look at the big picture. Remember now, an ounce of prevention is worth many pounds of cure. Avoid cutting corners. Do not get slap-dash. Some on your pumped-up, charging team may get a bit frustrated, but make sure that your execution is accurate and that you are moving in the direction that will bring about the desired outcomes. Take the time to get buy-in of key stakeholders. You will be successful if you allow success to happen!

Thanks for reading,

Kim

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A High-Five Finish for 2015: Your One Page Action Plan

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Happy September! Summer is de facto over, even if Labor Day Weekend is as late as possible this year.  We are back to business as of today. There is one month left in the third quarter. Start your estimated tax form today and mail it no later than the 15th. Then for your next project, lay the groundwork for a strong finish to the year and develop an Action Plan that you can roll out as the fourth quarter rolls in.

To get started, revisit your long-term goals—maybe you developed those last December or January?—and pick three that stand out as priorities that deserve attention in the near term. These goals will become your focus. Ideally, you will select goals that will substantively impact the success of your organization.

Examples of good focus goals  include operational changes that streamline how you deliver services; customer service changes, such as billing system improvements; hiring an intern or an employee; lead generation initiatives; or a marketing campaign designed to enhance sales or up-selling opportunities. I suggest that you limit your focus goals  to a maximum of three, so as not to overwhelm yourself. The idea is to make a positive impact on your organization within 90 days.

If you have in your employ a leadership team that shares in decision-making, be certain to include them in the selection of focus goals.  It is important to seek out other perspectives when determining goals that will be given priority.  Moreover, the Action Plan will be less successful if you fail to Involve the leadership team and get buy-in for its aims and implementation.

Once you’ve settled on your focus goals,  agree upon which outcomes will constitute their successful achievement. What will signal that you’ve crossed the finish line? Those outcomes will become your success criteria,  milestones that can be objectively and quantitatively measured.

An assignment from a new client; a marketing campaign that has been launched; a new operational efficiency that is in place; an employee or intern who has agreed to`a start date; or a process to bring in new, high-ranking leads that is ready to roll would be first-rate and quantifiable markers of success criteria  for your focus goals.  Give yourself two to four success criteria  for each focus goal.

Identify also one key performance indicator  KPI  for each focus goal  that will allow you to easily determine if you are on track to meet that goal and as well give you time to consider refinements to your Action Plan, if needed. For example, if hiring an intern or employee is a focus goal,  completing the first round of interviews with three or four candidates by a given date would make a useful KPI.  If improvements in your billing system would involve the purchase of new software, the purchase of that software by a given date would represent a quantifiable KPI.

The last step in the development of your one page Action Plan is to create action steps  for the focus goals  and choose reasonable completion dates. Consider what you can or must do to substantively impact each one. Lastly, with your leadership team, decide who will “own” and assume responsibility for carrying out each action step.

Thanks for reading and enjoy Labor Day Weekend.

Kim