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consultant
support How
to bill more than $100,000 in one year
Below
is a transcript of an on-line conference
with Peter Meyer discussing how to bill
more than $100,000 in one year. The
session occurred on December 19,
1995. Peter
is an internationally known writer,
speaker and consultant. He is known for
his work in team management, productivity
and time management. He has written for
magazines such as Business Horizons,
Business & Economic Review, and has
been profiled in Entrepreneur 12/19/95
10:19:56 PM Opening
ÒpetermayuerÓ for
recording. PeterEva
: That is the 7 step process PeterEva
: What I'd like to do is to start with a
few comments PeterEva
: and then entertain questions. PeterEva
: Is that OK? JoSoCal
: please go ahead. PeterEva
: Thanks Joe. The first point is that the
process only works if we do not offer
solutions PeterEva
: early. In fact, we talk about ourselves
for about 90 seconds in the first 4
steps. PeterEva
: Why? The point is that customers buy to
get a solution, and we are not that
solution, we are PeterEva
: only a path to it. In the same way that
I do not care about how a hamburger gets
to my plate PeterEva
: my customer really does not care how I
got educated or about my past. They care
about whet PeterEva
: her I know their problem and can solve
it. PeterEva
: If I talk, how can I know about their
problem? I cannot. The entire process is
designed to PeterEva
: cause me to listen. Only after I have
listened to I have the RIGHT to offer a
solution. PeterEva
: Whew, my fingers are tired. Any
questions yet? JoSoCal
: Yes... I have a few... PeterEva
: OK, let me continue PeterEva
: Joe, go ahead Janet
AC1 : ? PeterEva
: Joe first I think JoSoCal
: Ok... JHeffner
: ? JoSoCal
: In your description of the process, you
said that you do a design
session... JoSoCal
: is it too soon to ask what is covered in
there? PeterEva
: Never too soon PeterEva
: The idea here is that you have done a
survey PeterEva
: From that survey you now know more about
the problem as others see it than
anyone PeterEva
: else in the customer
organization PeterEva
: So, you start a design session with a
review of what you know and think you
know, and PeterEva
: then you ask for agreement and
correction. You will get both. In short
order you will have JoSoCal
: Doesn't the survey require quite a bit
of time invested by you before you even
know you have JoSoCal
: the job. (sorry for cutting you
off) PeterEva
: what you need - an agreed upon set of
success criteria. PeterEva
: Let me finish this thought and then come
back to that. PeterEva
: With the success criteria you can get
the people in the room to start to build a
solution. I PeterEva
: always offer a stalking horse to start.
The key is that you have shown that you
know the PeterEva
: problem as well as they do. This
requires that investment that Joe asks
about PeterEva
: And yes, you need to make it. However,
if your close ratio is better than 75% and
you can PeterEva
: get a premium for your time . . . .
. PeterEva
: (Does that answer your question
Joe?) TomPrz
: ? JoSoCal
: I guess it depends on the nature of the
engagement... PeterEva
: How so Joe JoSoCal
: Many times the potential client wants to
formalize an arrangement before they will
"air JoSoCal
: their dirty laundry" to an outsider.
Remember, an investment of your time is
also an JoSoCal
: investment in their time. JoSoCal
: Who else has questions? PeterEva
: Yes, and we owe it to them to be careful
of their time JoSoCal
: JHeffner? JoSoCal
: and TomPrz? PeterEva
: The point is that if we are clearly
listening more than talking at the
beginning JHeffner
: Prelimary research and cold calling
don't seem to go together? PeterEva
: we will find that many of the barriers
we are used to start to fall
apart PeterEva
: Jheffner - I agree there. Many of us do
not cold call at all, and live off of
refs. Some do PeterEva
: not do that yet. JoSoCal
: TomPrz? JHeffner
: Your first step is cold
calling? TomPrz
: Please talk a little more about
prospecting, before that first call. How
do you select PeterEva
: No, it is prospecting. That includes the
research on warm prospects TomPrz
: for folks who want to talk, not
listen? JoSoCal
: how's that for a segue??? PeterEva
: Tom, who does not want to be
heard? TomPrz
: Incredible. Pay me tomorrow. PeterEva
: On the other hand, how many people give
you time to talk, or talk to you too
much. PeterEva
: When was the last time you were called
on by someone who actually
listened? DPoretzLtd
: all the time PeterEva
: When you are that person, it gets a lot
of attention! Janet
AC1 : ? TomPrz
: So ... tell me again how to find folks
who want to talk to me about what I
sell? PeterEva
: I would suggest that we do not do
that PeterEva
: Instead, we go to clients and ask what
they need. The key question is "what keeps
you up DPoretzLtd
: ? PeterEva
: at night?" If you know, you can start to
talk about business issues and then you
are in PeterEva
: the right conversation. PeterEva
: However, you run the risk of finding
problems you cannot solve. However, that
is a risk that TomPrz
: Um ... you're going to clients with that
question? How did they get to be
clients? PeterEva
: most of us can deal with PeterEva
: Tom, I do this before they are
clients. Janet
AC1 : You know nothing about them and go
an ask what they need> PeterEva
: If I have an intro, I may simply say -
so, I have helped Tom to really solve some
issues, JoSoCal
: Peter, I think Tom is trying to figure
out how to get that FIRST
client. TomPrz
: RIGHT! RDEFRONZO
: Peter what you ratio of calls that
become clients vs not? Janet
AC1 : Or the new client PeterEva
: but they are not your problems. So, what
are your concerns with growth? PeterEva
: I am still on Tom's question. If you
have no client reference, you can still do
some PeterEva
: research, or do what I have
done. JoSoCal
: One way that I have found that works is
firmly defining your target market, find
other non- PeterEva
: I have called people I did not know and
asked about their business. Primarily in
your JoSoCal
: competing professionals with the same
target market, develop the relationship
with them and PeterEva
: target market as Joe says JoSoCal
: then get the referral. PeterEva
: Whew, fast here. JoSoCal
: DP, you had a question? PeterEva
: However, if you know enough to start the
conversation, you know enough to say you
do not DPoretzLtd
: just a comment -- PeterEva
: know enough about the
prospect. PeterEva
: DP DPoretzLtd
: I think that a consultant
CONSULTS DPoretzLtd
: the premise is that you have
EXPERTISE DPoretzLtd
: if you have expertise, you should have
built that while AT THE SAME
TIME, DPoretzLtd
: you'be built your REPUTATION DPoretzLtd
: if so, the prospective client will
initiate the call DPoretzLtd
: if not, maybe you're NOT REAFY top be a
consultant DPoretzLtd
: and you should build your reputation and
expertise while in the employ DPoretzLtd
: of a corporation , etc PeterEva
: My premise is that we add value.
Expertise DPoretzLtd
: my premise as well PeterEva
: is essential, and can be used to get a
call PeterEva
: with someone you do not know. Then, the
process will cause you to listen to find
out PeterEva
: what value is to THAT person.
A DPoretzLtd
: I also think that many (too many) people
become consultants before they are ready
to be successful at DPoretzLtd
: it PeterEva
: after all, value is different for each
of us PeterEva
: Tom, this all implies that you can call
someone and say - Hey PeterEva
: I have some expertise, and I know your
industry. If you have concerns, I can
listen PeterEva
: and maybe help. BUT I do not know that.
Will you gamble with me that I can help
us PeterEva
: both?? PeterEva
: Gutsy, but it can work TomPrz
: Thanks. PeterEva
: Yr Welcome JHeffner
: ? PeterEva
: Janet - you had a ? PeterEva
: Then JHeffner? Janet
AC1 : Take JHeffner JHeffner
: What about all those folks who don't
know what they don't
know? How can you help them? PeterEva
: By asking them for information they
should have. PeterEva
: For instance, if they do not know about
networking, you might start a string of
questions PeterEva
: that focus on the business issues
involved and then lead to how we
trade PeterEva
: info. PeterEva
: The key is not to manipulate JHeffner
: ...is your specific area of
help...computery stuff? PeterEva
: So, if you ask, do not anticipate the
answer so much you can not deal with
it. PeterEva
: No, I am in exec development and helping
consultants. Both as intangible as you can
get Janet
AC1 : ? PeterEva
: Janet . . . Janet
AC1 : At what point DO you discuss
fees? PeterEva
: In the design session. There they team
(the stake holders and you) PeterEva
: have designed a solution. This means
that you are identifying ALL the costs to
that PeterEva
: solution. And, those costs include time,
money, people. JoSoCal
: ? Janet
AC1 : But by that point you have given
them the answers they need haven't
you? PeterEva
: If your fees are only 100K, and the
project cost is over 250K, then you are
peanuts. PeterEva
: Yes, you have all developed the answers.
AND PeterEva
: You are part of the team. That means
that they will go to the person who
knows PeterEva
: the issue the best, and them the best.
That is YOU. Janet
AC1 : What's to keep them from
implementing the solutions without you (or
your fee) PeterEva
: Sounds hard, but it works. PeterEva
: Lets think about that. If the problem is
the one that keeps an exec up at
night, PeterEva
: And you are now in the very middle of
the solution PeterEva
: Who would be silly enough to try and go
forward without your value. PeterEva
: If you offer no value PeterEva
: Then you do not deserve the
money. Janet
AC1 : What I'm getting at is that very
often the value of the consultant is
getting to what the real
problem PeterEva
: However, this usually is not the case.
You understand the problem better than
anyone else Janet
AC1 : IS PeterEva
: by now. PeterEva
: Sorry Janet - continue please Janet
AC1 : the value of the consultant is often
getting at what the problem is and
identifying what Janet
AC1 : needs to be done to correct it. It
seems you are saying to do all those
things Janet
AC1 : before even discussing your
fee. PeterEva
: Yes. Exactly Janet
AC1 : What do you do after identifying the
solutions? Janet
AC1 : What that gets them to pay your
fee DPoretzLtd
: ? PeterEva
: By then (step 4) the team wants to move
forward PeterEva
: So, I type up the notes from the desigh
session PeterEva
: and then that is the proposal. It
includes all costs PeterEva
: Janet, does this answer your
question? JHeffner
: ? PeterEva
: DPoretz, I think you are next DPoretzLtd
: another comment: if you are afraid that
you give all you can in the first meeting,
it's likely that DPoretzLtd
: you have little more value to offer -
and they should NOT
retain you Cryscass
: ? DPoretzLtd
: If they understand that you will add
value in the process, they WILL hire
you- DPoretzLtd
: and you can leave the meeting retained
-- without ever providing a written
proposal PeterEva
: The key to all of this is that the
process causes you to understand what is
of value PeterEva
: JHeffner is next I think. JHeffner
: Doesn't a lot of what you are saying
depend on their trust in your
reputation? PeterEva
: Right up until you start
listening! PeterEva
: As soon as you start listening, and they
can see that, they care not for PeterEva
: your reputation. They care if you know
and care about THEIR problem. PeterEva
: In other words, what works is not
worrying about us, but about them. That is
what is JoSoCal
: Dow PeterEva
: both attractive and what causes
solutions. JoSoCal
: sorry... slipped on the keyboard....
Doesn't there need to be an initial
(although brief) .. Janet
AC1 : ? PeterEva
: I have to stop, my battery just died. I
will be back in 2. Janet - can you
cover? Janet
AC1 : sure JoSoCal
: credential session, so they at least
know that you are someone worth even
discussing their JoSoCal
: deepest, darkest business issues
with. Janet
AC1 : We'll post that back to the screen
when Peter returns Janet
AC1 : While we're waiting, I think where
we differ is in JHeffner
: :::passing out pizza::: JoSoCal
: I think that is where the referral from
another trusted professional establishes
the ... Janet
AC1 : how much gets given to the client
before saying here's what I'll do for how
much. JoSoCal
: credibility so that you don't even need
to address it. JoSoCal
: Then you can focus on listening like
Peter suggests. Janet
AC1 : The referrals and name in the
industry would be important. JoSoCal
: DP, from our previous conversations, and
from tonights, it seems that you suggest
that Janet
AC1 : Welcome, Solid boss.. our guest for
tonight, Peter Meyer Janet
AC1 : will be right back.. JoSoCal
: unless you have the reputation where
potential clients call you, you should'nt
be consulting Janet
AC1 : he had to change a computer
battery Solid
boss : Thanks Janet Just kinda popped
in. DPoretzLtd
: nope - but I do suggest that the degree
of success as a consultant is directly
related to the Janet
AC1 : Of course you DO have to watch for
those potential clients who want to pick
your brain and not pay. DPoretzLtd
: degree of your repuattion, expertise,
and network Janet
AC1 : Peter.. PeterEva
: My apologies. I am back JoSoCal
: welcome back Peter. PeterEva
: Thanks. CMSCOMMUNI
: any one ever experiment with network
marketing JK749
: yes CMSCOMMUNI
: how do you like it Janet
AC1 : joe was asking ... Doesn't there
need to be an initial (although brief)
. JK749
: The concept is sound, if you work it
properly and treat it as a
business. Janet
AC1 : credential session, so they at least
know that you Janet
AC1 : are someone worth even discussing
their Janet
AC1 : problem Janet
AC1 : (go ahead) PeterEva
: Yes. But I used to take far too long
over this CMSCOMMUNI
: I am working in ACN/LCI PeterEva
: I think that we should not be talking
about pedigrees, but about JK749
: I'm not familiar with that PeterEva
: what we have actually done to help
others. In other words, for
companies PeterEva
: like yours, I have done this and that
(use specifics) PeterEva
: and I do not know if that applies to
you. However, tell me more about
how PeterEva
: your business is different . . . .
. JoSoCal
: Peter, you were gone when I suggested
that this part of the conversation
(credentials) JoSoCal
: is most effectively done FOR you by
another professional who is trusted by the
client and... JoSoCal
: can give you the referral into the
decision maker. PeterEva
: Oh yes! JoSoCal
: Which is why a strong personal network
of business professionals is ESSENTIAL to
building a JoSoCal
: strong consulting practice. PeterEva
: I agree, especially if those
professionals can talk about
specifics JoSoCal
: ? PeterEva
: I would rather you told someone that I
showed you how to get three deals
you PeterEva
: thought impossible by following a
process PeterEva
: I would prefer PeterEva
: you to say that I was able to help you
offer a higher price when asked
for PeterEva
: as discount, and get that higher price
(using real numbers.) PeterEva
: Does that help? JoSoCal
: Yes.Before you are retained do you
actually discuss solutions to problems or
identify issues Janet
AC1 : ? JoSoCal
: that need to be addressed. Many times I
feel that coming up with solutions prior
to going . JoSoCal
: through a problem entirely can come
across as a "know-it-all" not open to
ideas. PeterEva
: I discuss old problems, old solutions,
for about 90 seconds. Then we go to
their PeterEva
: problems. PeterEva
: No one else's matters PeterEva
: I make that clear from the first second.
Other solutions do not mean PeterEva
: I know the problems that you face. I
must listen to find out. PeterEva
: Does the distinction make sense
Joe? JSA51a
: Hi, looks like I just made
it. JoSoCal
: But didn't you say that in the design
session you come up with solutions, which
is prior to JoSoCal
: talking fees? PeterEva
: Yes. However, it is after we have
listened (the survey) and listened in
detail. If I know PeterEva
: how each stakeholder PeterEva
: defines success, then I know much more
than most. PeterEva
: That earns me the right to discuss
solutions. Until then, I do not
feel PeterEva
: that I have that right. PeterEva
: So, discuss past quickly, then listen a
lot, then jointly discuss
solutions JoSoCal
: Ok, but many of the situations that I
come across are very complicated and
coming up JoSoCal
: with the solutions is really a project
unto itself (Phase I, so to
speak). Janet
AC1 : That's exactly what I was getting at
before :) PeterEva
: Yes, so then the success criteria is
understanding the problem. If PeterEva
: during the survey you find this to be
the case, PeterEva
: start to ask people how they define
success, and PeterEva
: many times that results PeterEva
: in you asking people to set criteria for
the intermediate steps. PeterEva
: In other words, the complexity makes it
hard to define the ultimate criteria, so
you PeterEva
: do as Joe suggests, and define the first
phase. Starting PeterEva
: with the success criteria for that
phase. JoSoCal
: So the key is to define "success" in
bite-size chunks, not necessarily knowing
how big each PeterEva
: Does that PeterEva
: whoops JoSoCal
: bite will be, but knowing that the whole
meal must be "eaten". PeterEva
: Yes, like the elephant. PeterEva
: Does that help? JoSoCal
: Thanks, who has other
questions? Janet
AC1 : How do you decide what to
charge? PeterEva
: Three things contribute JoSoCal
: As much as they can afford
<g> PeterEva
: 1 - I have min fees JHeffner
: ? PeterEva
: 2 - If I do not offer value at those
fees, I have to PeterEva
: say sorry PeterEva
: 3 - I look at what the client gains, and
make sure that my fees are in relation to
that. If PeterEva
: I am too cheap - I get lost in the
deal PeterEva
: Janet, does that help? Then JHeffner I
think Janet
AC1 : Take JHeffner JHeffner
: Can you give us one specific example of
how your process worked? PeterEva
: Yes, we just finished the process for a
company in NJ JSA51a
: Excuse me, PeterEva what is your
expertises? PeterEva
: We got there from a reference, and got
ignored. PeterEva
: I got to the SR VP by asking what
problems kept him up
(literally) PeterEva
: We talked, and then I did a survey. Took
3 days, and they paid for it. PeterEva
: At the end of the survey we did a design
session. PeterEva
: Just a sec JSA Janet
AC1 : ? PeterEva
: At the design session, we got the
comment that our price was fair and they
needed, and PeterEva
: they meant needed to bite the bullet.
The key was when I asked the SR VP if I
knew PeterEva
: his business well enough. PeterEva
: He smiled and said we do it. PeterEva
: The proposal was a single sheet of
paper. PeterEva
: JSA - my expertise is exec development
and working with consultants on this
process, JHeffner
: How did you get him to go for the
survey, though? PeterEva
: usually live. PeterEva
: JHeffner, it was easy. I asked him his
success criteria. Then I asked if his team
had the PeterEva
: same ones. And then I asked him how he
knew. And then I asked him if they were
key PeterEva
: to the solution to the
problem. DPoretzLtd
: ? PeterEva
: He was suggesting a survey before I was
done. Janet
AC1 : Before you said you did the survey
and proposed solutions before talking
about fees.. this sounds PeterEva
: DPoretz, before I change subjects, let
me ask JHeffner
and Janet if we are complete Janet
AC1 : different PeterEva
: No. I did not discuss fees until the
design session. Janet
AC1 : so how did y ou get paid for the
survey? PeterEva
: The Sr VP bought the survey without
knowing the price. He PeterEva
: knew the cost of not solving the
problem, but that was not
enough. PeterEva
: What mattered to him is that I offered
to give him the money back PeterEva
: if I did not help him. He accepted
that. PeterEva
: Does that help Janet? Janet
AC1 : Somewhat. :) Take DPoretz PeterEva
: DPoretz, please go ahead DPoretzLtd
: how many people in your consulting firm?
and do you think there is a significant
benefit in doing DPoretzLtd
: business as a firm with people other
than just yourself? PeterEva
: 2 partners, many many contractors.
Yes DPoretzLtd
: what are those benefits? PeterEva
: I know so very little. If I do not use
others, then I do not give good
value PeterEva
: Giving good value is all I can ever hope
to do. That requires others DPoretzLtd
: but if you narrow narrow narrow your
expertise, you can get higher value added
fees as an individual PeterEva
: I can only get the highest value if I
can solve the biggest problems
clients PeterEva
: face. DPoretzLtd
: well, I'm not certain i agree PeterEva
: Would you pay $6K an hour for expertise
or solutions? DPoretzLtd
: i don;t charge by the hour JSA51a
: I know I would pay for
solutions PeterEva
: Actually the answer is not so critical
as the focus on solutions. I
apologize DPoretzLtd
: i am retained quarterly for expertise
that leads to solutions PeterEva
: Then, you deserve the $$ as long as you
deliver that path to solutions. Good
work! DPoretzLtd
: question remians: PeterEva
: Yes DPoretzLtd
: assume that is the case -- is there
benefit in adding people? JSA51a
: ? PeterEva
: I am not sure. There is benefit in havng
them available to you, especially if
you PeterEva
: 12/19/95
11:31:21 PM Opening
Òpetermayuer#2Ó for
recording. cannot
spell as I cannot. But really, all I want
is access. Does that answer your
question? PeterEva
: Just a sec JSA DPoretzLtd
: nope PeterEva
: DPoretz, I am sorry PeterEva
: can you restate it? DPoretzLtd
: i reallt wonder if there is equity
build-up possible in a consulting
firm PeterEva
: Not the way I do it. DPoretzLtd
: in other words -- what is the value of
growing the firm's TOP line? DPoretzLtd
: if there is no equity build-up, then you
want to go for the best BOTTOM line
possible PeterEva
: Not sure. Perhaps my focus in so much on
enjoying clients that I am missing
that. DPoretzLtd
: and that is HIGH fees (from narrow
niche) and low overhead (less - maybe no -
people) PeterEva
: DPoretz. You have an interesting
point. PeterEva
: Should I go to JSA? DPoretzLtd
: to me, right now - it is a major issue
-- but move on - thanks PeterEva
: Thank you! PeterEva
: JSA, please JSA51a
: Excutive Development? PeterEva
: Yes Janet
AC1 : folks who just came in.. JSA51a
: Is this a training and development type
of thing? Janet
AC1 : IM's don't seem to be
working.. Janet
AC1 : We're talking with Peter Meyer about
how Janet
AC1 : to bill more than $100,000 in
1996 JSA51a
: And he seems to left the
room. Janet
AC1 : oops.. he might have gotten locked
up Janet
AC1 : I was a minute ago Janet
AC1 : he should be right back
on. PeterEva
: I am sorry PeterEva
: I got dropped. PeterEva
: JSA - you were asking a
question, JSA51a
: So is he talking about a training and
development plan? PeterEva
: Please go on Janet
AC1 : System seems to be haveing problems
tonight PeterEva
: Yes Janet. JSA51a
: Snow and blowing northerns PeterEva
: JSA, I am not. PeterEva
: Not snow either. PeterEva
: What we do is to identify PeterEva
: a problem with the exec, a
problem DPoretzLtd
: will be back -- take care PeterEva
: that the team is struggling with. We
show them PeterEva
: tools that will help solve
it. PeterEva
: Does that help? Cryscass
: ? PeterEva
: Crys - please JSA51a
: What type of survey do you complete,
open end, closed end or
interview PeterEva
: Hold a sec. Cryscass, mind if I take
this? Cryscass
: I didn't quite understand the "identify
a problem with the exec" part PeterEva
: OK, that first PeterEva
: Most organizations PeterEva
: have a set of problems that seem to
linger. It could be revenue, service, or
even process. PeterEva
: Some of those are bad enough that the
exec worries about them PeterEva
: a lot. I ask questions to get
there. PeterEva
: To partially answer JSA, I use High Gain
questions for that. PeterEva
: High Gain is a term from someone else,
but the idea is thta PeterEva
: we ask questions that cause people to
think. That gives new information, new
for PeterEva
: both of us. PeterEva
: Often, "how would you define success" is
such a question PeterEva
: Cryscass - does that help? Cryscass
: I think so PeterEva
: JSA - did I answer your
question? Cryscass
: It's more of a problem FOR the exec, not
with him - ha. PeterEva
: Cryscass - yes. Even if both are
true. PeterEva
: <grin> PeterEva
: JSA - did I answer your
question? PeterEva
: Any questions that I have not yet
answered? JSA51a
: 6 K an hour, what is the price for small
corps? Cryscass
: ? PeterEva
: JSA - I am not sure I understand the
? Cryscass
: Maybe you could help me understand your
process in a hypothetical for my
bus. PeterEva
: Cryscass - OK, then back to
JSA JSA51a
: I am a CFO or was the CFO for a small
S-Corps that is cash strapped right now,
so I was JSA51a
: wondering what price for small cash
strapped businesses? PeterEva
: Um, I would probably work out terms or
shares or % of profit for you. Cryscass
: I'm a CPA, and my value added to a small
corp might be to identify ways to improve
bottom Cryscass
: line or cash flow. PeterEva
: Cash strapped is not unique to small
business. PeterEva
: Cryscass, go ahead Cryscass
: But, to identify the potential solutions
could be a major effort. Janet
AC1 : Hehehe.. there are days when I think
it's synonymous with small
business JHeffner
: I thought that that was the definition
of small business! :D PeterEva
: Cryscass - are you suggesting that the
time to solution might be too
long? JSA51a
: Even when the Major Stockholders do not
wish to or cannot provide sales
projections? Cryscass
: I'm sort of combining the concerns
raised by Jo and Janet. PeterEva
: JSA - if the problem is really critical,
then we will work out a
solution. PeterEva
: Cryscass - go ahead Cryscass
: By the time I identify the solution,
lets say Cryscass
: accounts receivable are aged and too
high Cryscass
: If I point that out as the problem, they
may be ready and able to go to work
on Cryscass
: the solution Cryscass
: without me. PeterEva
: JSA - The idea is not to solve any other
problems PeterEva
: Cryscass, you are right PeterEva
: However, if you follow the steps through
the survey before you come to solution,
you will Cryscass
: Lets say it took me 3 or 4 days to look
things over and come to the
conclusion PeterEva
: find that you are deep into
understanding that the rest do not
have. PeterEva
: Please go ahead Cryscass
: First, I don't know before I look into
the business whether I can add a
value Cryscass
: Maybe there's a problem we/I can't
resolve Cryscass
: Maybe he can't compete with another corp
competitively. PeterEva
: Maybe PeterEva
: You will have to offer a
different Cryscass
: You can't get to that point, or the
conclusion/possible solution without
sometimes a Cryscass
: major investment of time PeterEva
: Yes. Cryscass
: and then, if the solution is in
identifying the problem, you've delivered
already Cryscass
: Why would they feel obligated to
pay? PeterEva
: 2 points. Cryscass
: yes PeterEva
: One is that we all gravitate to honest
people PeterEva
: That means that we will probably be
dealiong PeterEva
: with honorable people. If so, you may
get paid for work if the PeterEva
: only value you offer is to Janet
AC1 : MAY get paid? PeterEva
: help them solve the problem with someone
else. PeterEva
: Janet - if the person is not
honorable, PeterEva
: your chances of getting paid drop
anyway. PeterEva
: 2 - PeterEva
: We said earlier that it makes sense to
break PeterEva
: these things up into pieces. You may
find yourself adding REAL value PeterEva
: by simply PeterEva
: helping people understand their
problems PeterEva
: And that is very, very
valuable. Cryscass
: exactly PeterEva
: So, charge for that. Offer
that PeterEva
: Your success criteria are identifying
the problem and path to
solution. PeterEva
: If the path includes you, great. If not,
great. PeterEva
: If you meet the success criteria
of PeterEva
: identifying the problem, then you should
get paid. JoSoCal
: ???? PeterEva
: Joe, please go ahead Cryscass
: brb JoSoCal
: The topic of this meeting was billing
$100K next year... PeterEva
: Yes JoSoCal
: Typically consultants bill either on a
retainer basis or by the
hour... PeterEva
: Please continue JoSoCal
: if it is hourly, good rates might be
$250 - $250 per hour... JoSoCal
: that is $200 - $250 per hour
<g> PeterEva
: Got it. Go on. JoSoCal
: However, the key is setting the
rate... JoSoCal
: and this is where DP was coming from (I
think) JoSoCal
: 1) how does someone set an appropriate
rate and ... JoSoCal
: 2) at $250 per hour and 2000 hours per
year, that equates to $500,000 per
year. PeterEva
: Do you want me to answer 1
first? JoSoCal
: Why stop at $100K JoSoCal
: Sure. PeterEva
: Oh, 2 is easy. Don't stop as long as you
are having fun. PeterEva
: 1 - there are three things to consider,
but if you are doing a PeterEva
: design session, then you are
identifying PeterEva
: all the costs for the project, and since
you understand the success criteria,
you PeterEva
: understand the benefits to your
client. PeterEva
: Tell them all of this. PeterEva
: Then, look at the numbers, and decide
what is fair for you for the whole
project PeterEva
: Then, ask if it is fair. PeterEva
: If it is, then ask to get it. PeterEva
: Joe, does that help? PeterEva
: I am lucky in that my clients usually do
not have budget for me, so we PeterEva
: are able to look solely at the
problem. PeterEva
: It is much better for all that we
discuss business instead of
budget. PeterEva
: Again, thanks for your kind attention
this evening. JoSoCal
: Peter, 'tis a nice situation to be in;
however, the majority of consultants I
don't think JoSoCal
: are in that situation. PeterEva
: I agree. However, any of us can ask the
questions that lead to a business
discussion instead PeterEva
: of a budget one JHeffner
: Good nite! :) Janet
AC1 : Night everyone Cryscass
: Good night. 12/20/95
12:11:54 AM Closing Log file. articles
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