How much is what you offer worth? Step by step how to put a price on what you do
If you are a manager of your own company or are thinking about starting your own business, this is a special article for you. But if you are not (nor do you intend to be) I would tell you not to discard this strategy because little by little companies begin to evaluate their collaborators in the same way that they would with their suppliers or strategic partners, and even areas such as Human Resources or IT are considered internal suppliers and must work with the same parameters as they would with external clients. So this strategy can be very useful to start evaluating what you offer in your company in a different way.
Before, assigning value to a product or service was as simple as calculating the cost of its components and adding a markup or expected profit. But in recent years, the value of a product or service began to be measured in a more novel way using more subjective concepts such as added value and perceived value.
Here I share with you a "step by step" of 3 factors to consider when wanting to know and quantify the value of your services:
Number 1 - Everything is measured in results.
It does not matter if the service you provide is advice, training, auditing, coaching, consulting. It frankly doesn't matter to your client. What will motivate him to feel that your service has added value is knowing what he is going to get, that is, what his results will be.
So if you dedicate yourself to training (inside or outside a company) it really doesn't matter that you show your services as trainings for Leaders where they will learn how to manage a project, how to use the technical tools of the project, how to calculate IRR and NPV (variables of the project), etc. But you must find and enhance what benefits or results will bring that person to be more capable.
For example: by obtaining better tools for Leadership, this person will have greater control of his projects in charge, he will be able to make better decisions, he will be a better guide for the collaborators who work with him, generating synergies in the team and not only achieving the best economic results for the company but favoring teamwork, a better organizational climate and even reducing turnover. How does the training look now? Do you see how the idea of added value changes?
Number 2 - Make the results tangible
This word is really rare but I want you to understand what I mean: to make the results tangible and concrete enough, even expressing them numerically if possible. How much money are you going to earn? How much money are you going to save? Tax savings? Waste reduction?
Continuing with the previous example, the skills obtained by the Leadership team will allow to earn 2 additional points in the margin of each project, additionally it is expected that the systematic management of projects within this framework of action will generate between 5 and 10% increase in employee satisfaction, measured through the organizational climate survey carried out annually. You see it? Simple too. Translate benefits into numbers and you will capture the attention of even your most analytical customers.
Number 3 - Know the perceived value
Here is the most subjective part of the matter. But just because it's subjective doesn't mean it's totally out of your control. The perceived value has a lot to do with the current situation and the customer's need. If what you offer is a training with the benefits of the example, in a company where the economic results are caressing the terrain of the loss, probably this service and its benefits will have a higher perceived value than it would be for a company seeking improvement Continues but does not have your operation at risk.
A step-by-step of 3 factors that help you put a price on your services and know what variables you must master in order to talk about "value" with your clients.
