All prices are contextual.

All prices are contextual; provide value context, or your client will."

That's one insight shared by Ethan Williams on Prof. Joe O'Mahoney podcast.

It emphasises that consulting fees are best framed by the value they offer clients. Consultants need to highlight project outcomes and impact. Otherwise, clients may miss the unique benefits they bring.

Yet, it's easy to get caught in a deliverables trap.

Decisions come down to cost comparisons. You'll end up competing on price. And leave money on the table.

5 of Ethan's suggestions on what to do instead:

1️⃣ ⇥ Understand the client’s perspective on value..
↳ Elicit the client's goals and challenges.
↳ Set fees based on the value they expect to achieve.

2️⃣ ⇥ Use pricing as a tool to highlight unique benefits.
↳ Rate cards with no other context will encourage price comparison.
↳ Show how your approach delivers the outcome better than other options.

3️⃣ ⇥ Frame fees in relation to outcomes, not inputs.
↳ Describe the anticipated outcomes of your work and link these to your pricing.
↳ Focusing on outcomes makes clients less likely to see you as a commodity.

4️⃣ ⇥ Anchor prices with options to provide comparative context.
↳ Tiered options show the benefits at different fee levels.
↳ Choices give clients a frame of reference that shifts focus from cost to a value comparison.

5️⃣⇥ Support value claims with data where possible.
↳ Make sure you compare value to metrics that matter to clients.
↳ Provide data, projections, or case studies to support your claims about value.

These are useful ideas.

And there were a whole lot more insights. So, get a Front Row seat and listen to the whole podcast.

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