Two Key Elements to Increasing Your Margin
Leigh Powell is a Business Mentor and Strategist with and has worked with over 150 small businesses.
From the hundreds of Business owners he has worked with over the years, Leigh has found that small business owners price themselves at cost recovery plus a bit. The same business owners are often busy, working long hours and at night lose sleep knowing that their income is probably not enough for the time, experience and benefit they provide to their clients. and customers.
Time and time again, they want to know how to price their worth to others and how to better translate this value to price.
To build a bigger and better business, there are 2 key elements a business owner needs to focus on.
Leigh says " These elements will shape your communication with existing, and when prospecting for new. By translating “what you do” into “choose me and this is how your business will benefit”.
The key focus is to change your mindset from a Transaction to a Value Exchange."
Leigh shares his formula here-
First: Reflect and record the enormous experience you bring to the table
i.e. your investment in building your experience.
a. Time and training with an employer
b. Study and qualification and ongoing professional development
c. Experience in getting things right and wrong
d. Understanding the trends and do and don’ts (law, regulation) in your business/profession
e. Setting up your business, taking a risk and developing a proposition that works
Second: Your investment for standing in the shoes of your current and prospective clients.
This can involve having a different conversation with a client than you are used to
f. Developing a value proposition based on your client’s problems and how you can resolve them
g. Develop an Offer that talks to how your client will benefit by using your services eg.
- Better staff engagement (happy, retained staff with ideas how to improve things)
- Better client experience (repeat business and they become an advocate to new clients for your services) and
- Shareholder/owner experience (better margins/profit)
Third:Build your “Brag” sheet and privately convince yourself first of your extraordinary worth.
Then spend time in thinking through not -
what you do...
but translate this into “what you will achieve for your client” and make sure it is in their language.
So what are you worth and what’s your price?
Demonstrate (first to yourself) the Worth you bring to the table
Talk the (problem solving) benefits of choosing you in the language of your client
More than you currently charge, because you are worth it.
Leigh facilitates YTM's "Think Tank" program and provides Business Strategy and Mentoring .If you would like to arrange a time to discuss your business needs, he can be contacted here or call 0422 601 950.