Are you too expensive?

So…..IMG_1415 has a prospective client ever told you that you are too expensive and what has been your response? There are, of course a number of responses that are possible:

  • Reduce your price, do the work, but resent how much effort you put in for little reward
  • Find ways to reduce the cost but let them know that the quality will suffer
  • Stick to your guns and say you cannot reduce your price any lower than it is, risk losing the business
  • Put together a business case for them which demonstrates ROI (return on investment)

 

When this has happened to me it has caused me to reflect and to ask myself the following questions:

  • Did I really understand their needs?
  • Did they really understand their needs?
  • If they think I am expensive, is my product/service really comparable to others who are much cheaper?
  • Is the quality I provide too high?
  • Did I help them sufficiently, to uncover how they could realise their return on the investment?

Some of my clients are already at the point, where they can easily put together a business case for learning, with real tangible outputs. In the past year I have collected some of their organisational objectives, that they have set for the training I deliver:

  • From the best companies survey in October 2016 to see an improvement of the personal growth factor of 2.5% from a baseline taken in October 2015.
  • By October 2016 to see 10% less bought in training in the period October 1st 2015 to September 30th 2016 compared to the previous year and seeing a cost saving of >= xxxxx
  • For the period January 1st to March 30th 2016 to see an improvement in the level 1 evaluations for those already training of 4%. (allowing a 3 month time lag to make changes in their existing training)
  • The normal ratio of 1:8 delivery:design days will be achieved. Currently around 10-12 days hence a time/cost saving
  • Client feedback will be more than “ok”
  • A decrease in the unit cost (£)
  • An increase in delegate numbers
  • An increase in demand for our learning interventions (more “touches”)

Can you spot which objectives you could use to put together a business case?

Here are my choices for great organisational objectives that can easily translate into some tangible measures:

  • By October 2016 to see 10% less bought in training in the period October 1st 2015 to September30th 2016 compared to the previous year and seeing a cost saving of >= xxxxx 
  • The normal ratio of 1:8 delivery:design days will be achieved. Currently around 10-12 – days hence a time/cost saving
  • A decrease in the unit cost (£)
  • An increase in delegate numbers – added value – more trainees and greater improvements through the organisation

For each client, I can help them put together a business case for implementing the training, but they have to know what they are trying to achieve, or I have to ask the right questions to uncover this. If they think it is a “nice to have” or “they haven’t had any training for a while” sort of thing …. with the best will in the world you are always going to look expensive!

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