RR#063 Drive Up Your Consulting Prices With This Simple Strategy

Risk and price are inversely related.

This is easy to see in the used car market.

You’d likely pay more for a car if an independent mechanic says it's in good shape.

You’d probably pay even more to buy a car from a close friend who you know has taken great care of it.

And you’d pay even more for a car that comes with a bumper-to-bumper warranty.

Why? Because risk and price are inversely related.

This is as true when selling services as it is selling used cars. But when you’re selling services, you are the risk.

No one knows how good you really are until after they hire you. Before that, they only have your marketing and sales pitches to rely on.

There are some tried-and-true ways to reduce risk.

One is by using social proof like testimonials, case studies, and other forms of third-party validation. This is like having a mechanic vouch for a car. But some people might question if it's real or relevant.

Another way is offering guarantees, like money-back or promising to work until they get the results you promised. This acts like a warranty on a used car. However, a lot of people question whether you’ll really follow through.

So, how can you reduce risk even further? Or better, eliminate it entirely?

This is where Diagnostic Productized Services, like paid audits or assessments, come in. They're like letting your potential clients take the car home for an extended test drive.

With a Diagnostic Productized Service, clients get a firsthand experience of your skills and expertise. They get to see what you’re capable of before they commit to a long-term engagement.

This dramatically reduces - or even eliminates - risk.

Starting with a Diagnostic Productized Service means you don’t have to negotiate a full engagement without having proven what you’re capable of.

Just as importantly, you get a chance to look under your client’s hood, diagnose root causes, and confirm it’s a situation you can (and want to) help with.

Using this strategy in my consulting business helped me in 3 important ways:

1. A productized service was easier to explain, which made it easier to market and sell. So, I had more opportunities.

2. I was able to earn 10x more — literally. Partly because the process of delivering the productize service got insanely efficient. And partly because we didn’t talk “rates” until after I’d proven my worth.

3. Clients respected me more because the diagnosis I provided almost always revealed high value issues they didn’t know they had. That meant hiring me for what I knew, not just what I did.

Want to cut through uncertainty, boost your worth, and command higher prices? Consider Diagnostic Productized Services.

To learn more about how this strategy can help you break your income plateau, watch my latest video where I dive into it in more detail.

Watch full video

Remember, the less risk clients perceive, the more willing they are to invest in your services. An the more they’re willing to pay. With Diagnostic Productized Services, you have the tools to reduce that risk and supercharge your consulting practice.

P.S. - Wanna take it on the road? Tune in on Repeatable Revenue Podcast here.