Set Fees Based in Value, Not Time Spent

Consider establishing fees based on value of the services you will provide and not on the time you spend on the project. Clients will judge the wisdom of your services based on their own agenda. They want to know if your services will help solve a problem, or if using your services will benefit them equal to or more than the cost of your services. Your fees must reflect value to the client.

You must be willing to estimate the total time needed to get the job done when you are quoting fee on a time and materials basis. Just telling the client you charge $200 an hour plus expenses is not always sufficient. Howard Shenson recommends you let the client know the number of hours you will take to produce the desired results. To properly estimate requires careful analysis and attention to details, says the late Shenson, the consultant’s consultant.

Dr. Darryl

L. Darryl Armstrong

ARMSTRONG and Associates

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Charge for Travel Using a Per-Diem Basis

You may want to consider charging a per diem for your travel expenses (hotels, meals and incidentals) rather than direct reibursement. Most clients prefer the simplicity of per-diem expenses and this arrangement avoids any criticism about how you spend expense dollars.

Think about having multiple per-diem rates, the late Howard Shenson, the consultant’s consultant suggests. You would have one per-diem for expensive cities and another for smaller markets. Set per-diem rates and define the quality of your life on the road in a way that is consistent with the style and expense that your client feels is appropriate. People are more comfortable when you do things the way they do them.

Dr. Darryl

L. Darryl Armstrong

ARMSTRONG and Associates

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Get something back when you giveaway a “freebie”

So now you are a successful consultant!

As a professional in the field of consulting, you will be frequently asked to give your clients “little favors” and since you can rarely collect a fee for them, the best term we can use is that these are “freebies.”

These “freebies” can include everything from answering a quick question by telephone to sending them copies of articles and documents. The list can be quite endless.

 However, these free services can be turned into a profit center for you with the “one-minute commercial.”

Here’s the secret.

When asked for a “freebie” or a favor, quickly respond with one of these answers:

• “I will be glad to take care of that for you … if you will make a deal.”
• “I’ll help if you make an agreement with me.”
• “It’s free, no problem … but there is a catch.”
• “Sure, I can help … but you must make me a promise.”

So, what is the deal? What is the Catch? What is the promise?

Well, it’s simple really … They simply promise, agree or make a deal to call you first when they need the services you provide. Add some spice to your one-minute commercial by also getting them to promise or agree to recommend you to others or to provide you a testimonial (which you can offer to draft for them).

This one-minute commercial can be fun for you both, and is a powerful sales tool for your firm.

However, we recommend you use this technique only when you have done something for free or extra for a prospect or client.

Dr. Darryl

L. Darryl Armstrong

ARMSTRONG and Associates

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Exemplary Public Relations for Starbucks

In the January 15, 2008 issue of Bottom Line Personal, there is an article about a man who wrote a book entitled, “How Starbucks Saved My Life.” 

The book is about a man who was a former six-figure advertising executive, and by age 63 was divorced, unemployed, nearly broke, and diagnosed with a brain tumor. 

Because he was in desperate need of health insurance and a regular paycheck, he took a job serving coffee at Starbucks for $10.50 an hour.  He ended up loving the job.

Today he is healthy, has sold his life story to Hollywood ( and it appears that Tom Hanks will probably play him in the film) and yet still plans to work at Starbucks because he enjoys the job. 

This type of public relations for a company simply can not be bought at any price!

This type of public relations is simply priceless and it couldn’t come at a better time for Starbuck’s, who has raised its prices twice in the past year and is facing major competition from McDonald’s and Dunkin Donuts. 

It also showcases a company that has created an exemplary working environment.  Simply, great work environments attract great employees, who offer better customer service, which makes for better sales.

Now this my friends is the best of all worlds.

Dr. Darryl

L. Darryl Armstrong

ARMSTRONG and Associates

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Don’t Jump at the Opportunity to Cut Your Fee

Don’t accept a request for a reduction in your fee unless the client is willing to reduce the scope work.Bargaining makes you less desirable and creates the wrong image. If you communicate w willingness to accept less, you are letting the client know that you are hungry and desperate or that your initial fee was inflated.

Some clients aren’t happy and may not do business unless they can bargain. In such cases, again, cut your fee only in exchange for a reduction in time and resources provided. This approach allows you to save face and permits the client to get the deal he seeks.

Be especially cautious and reject offers to cut your fee or to provide services because of “exposure” and “potentially beneficial contacts” you will receive from the project.

“Potentials” don’t pay the mortgage! Think: When is the last time doctors, dentists, or lawyers reduced their fees for you? Set a fair and justified professional fee and stay with it!

Dr. Darryl

L. Darryl Armstrong

ARMSTRONG and Associates

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Put a Client’s Fears to Rest Before Beginning Work on the Project

Be sure to identify the fears that prospective clients have about working with you. It takes some effort, but they will be reluctant to use your services until you have:

1. Identified their fears
2. Discussed their fears with them
3. Laid their fears to rest

For example, one of the greatest fears that a client can have is do you have the ability to produce the desired results on a timely basis?

Always provide the client with a schedule that identifies with precision, when the various elements of your work will be completed. The schedule may change once work is underway, yet it serves as a reassurance to your client that you have concern for their most important priority — timely completion of the project.

Dr. Darryl

L. Darryl Armstrong

ARMSTRONG and Associates

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Help the Client See You as a Source of Value and Not a Threat

(My apologies to all - the post I sent out last night had some spelling errors that have now been corrected. This happens when I write it on the road and forget to spell check and reread it. Thanks to Susan Gaffney-Evans for pointing this out. D.) 

BNA — It’s sometimes hard to do yet I highly recommend you not accept a client who doesn’t value your services or with whom you have a personality conflict. Frankly, and I know this from experience, these clients will create more problems in the long run no matter how hard you try to be of service to them.

When working with the client’s staff, you will probably be perceived as a threat. You can reduce the degree of the threat feeling by ensuring that the client properly introduces you and explains your role. You can further reduce the threat by communicating the fact that you want to work with the staff to ease the tension and motivate them by showing how their role will benefit them as well as the company.

Your continued success will greatly depend on your ability to bury your own ego and let the key players in the client’s organization get recognition for your accomplishments. Those who are important for future business referrals will know that you are responsible for these achievements.

Don’t allow your relationship with a client to deteriorate into one which is adversarial. Your role is to serve the client first and only. Keep your lines of communication open and honest. If they do deteriorate, stop providing services until the communications are patched up.

Always be viewed by your clients as giving the most you can give. Always give them extra value - or what we call lagniappe. You will benefit by having others understand that you will always give more than is expected.

Dr. Darryl

L. Darryl Armstrong

ARMSTRONG and Associates

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Let Clients Know You Will Make Them Self-Sufficient

The late great Howard Shenson was a mentor of mine and a great consultant who helped many of us develop and grow our businesses. He was always quick to point out that a truly good consultant worked diligently to ensure that their clients would become self-sufficient.

People are often reluctant to become your client or to refer business to you if they perceive that the engagement could be long-term and expensive. You can increase the potential to get their business by taking the time to communicate clearly and articulately to them that your operating philosophy is to train them to be self-sufficient.

Your clients, and your potential clients, need to know that the process you will engage with them is one that will help make them self-reliant and that will free from the the need to obtain desired results by continued involvement with outside consultants.

Dr. Darryl

L. Darryl Armstrong

ARMSTRONG and Associates

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Myre Understands How to G-Market His BBQ Sauce

Christopher Understands G-Marketing — Buzzy Fine Foods

Christopher T. Myre is a professional chef recently transplanted from San Diego, Ca. to Wilmington Island next door to Tybee Island, Ga. He has applied his culinary interest and expertise to a unique BBQ sauce called “Buzzy’s Fine Foods.”

Myre knows how to market using the time-tested tactics of g-marketing.

Recently as we visited at the Tybee Dog Park he told me of coming back from Northern Georgia and stopping for gas. Now picture this, here Myre sits with his van all decked out in newly-painted graphics promoting Buzzy’s Fine Foods and who pulls in next to him but a trailer carrying a smoker — in the shape of a — pig!

As I have always said, there are no coincidences.

And you bet Myre whipped out a bottle of his new BBQ sauce, gave it to the the fella and exemplified what guerrilla marketing is all about. Take advantage of every opportunity that is presented to you!

If you want to be a good guerrilla marketer follow your gut, take advantage of every opportunity that is presented, and always have your product close at hand. I m pretty sure Myre will get some business from this encounter of the most pleasant kind.

In fact we are taking some of Myre’s sauce home with us to Newsom’s Country Store. If you want to try his new product contact him at ctmispelon@hotmail.com and read more g-marketing ideas at our website listed below.

Until next time,

Dr. Darryl

L. Darryl Armstrong

ARMSTRONG and Associates

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Charly’s at Tybee Island - Excellent Service and Delicious Food

 As you know, if you are reading this blog as one of the regular 1200 or so folks that we reach out to periodically, I am always on the look out for memorable customer service especially examples of exceptionally good service. I am pleased to report I have found good customer service and good food.

It’s rare that you find the two combined. We found both this Thanksgiving  at Charly’s Restaurant located next door to the Tybee Island, Ga. Post Office.

Now, I am not a restaurant critic and I don’t want to be one. Simply, I know what I like and I have pretty exacting yet rather simple tastes. When I get good food and good service combined with special attention from the management then I am a happy camper. So, it was this Thanksgiving Day for us at Tybee Island, a coastal island out from Savannah.

We are at the beach this late in the year and at the holidays because we  had to delay our vacation plans until November 20^th to get to the island for a working vacation.

I was somewhat concerned and maybe even a little hesitant to be here during the holidays. Thanksgiving and Christmas were my Mother’s two favorite holidays and it just doesn’t seem to be the same without her here to enjoy them with us. Combine her love for these days with her love to cook and entertain family and you have the makings for a sad day when she is not around.

Mom was a pretty critical woman when it came to food and service. However, I believe Mother would have been proud of Charlie Vonashek, the proprietor of Charly’s Restaurant. I think she would have even enjoyed visiting his new establishment as much as we did.

Let me tell you I am a  lover of turkey and dressing  and my Mother’s turkey and dressing was one of my all time favorites.  So when Mr. Charlie offered a sample of his dressing I was skeptical. (However, this is an excellent guerrilla marketing tactic.)  Mr. Charlie makes a fine dressing  - not as good as Mother’s but then no one could match her recipe  - but pretty darn good and that’s not all.

I had his turkey and special dressing, mashed sweet potatoes and green beans and let me tell you they were down right Thanksgiving good.  Kay had the roasted half duck with orange butter sauce and it was equally delicious. And to top it off they have a full service bar with a nice selection of wines, beer and liquor. They pour good stiff drinks and they have free limo service, if you need a ride to or from the restaurant - a really nice touch and a great guerrilla marketing idea.

Jim and Ann Knipe, my surrogate parents here, hosted us for this Thanksgiving feast. They are the type of  “parents” for whom I am most grateful. Their daughter, son-in-law and their son joined us.

Our dining was in a small and lovely decorated dining room where we could have a conversation and actually hear one another.  The walls of the restaurant are lined with original art work by Patti and these originals are all available for sale. Both of these are excellent “branding” strategies for a new establishment.

This brings me to the service and the memorable experiences.

From the minute you arrive until you leave, Charlie is greeting and visiting - not intrusively but accommodatingly. (Another good branding tactic.)

Now Charlie, who is from a Czech-Polish family was born and raised in Cicero, Illinois (for those of you who may not know your Midwest history this was the home of Al Capone in his hey days) yet it seems that Charlie outed the Army here in 1971 and loved the Savannah area so well he stayed to work for Gulf Stream and cut his teeth in the restaurant business on his former operation known as Skippers.

Much of the southern hospitality that I am sure attracted him here to begin with and that  he has experienced the past 35 years has obviously taken hold on him and the way he conducts his own business.

His guest services staff was polite, efficient and courteous and they saw to it that everyone had a memorable guest experience.

Vonashek and his team at Charly’s have the right ingredients and recipe for a great restaurant. They understand personalized customer service, good food at a very reasonable price (no entrée is over $20), and they are focused on being successful while helping their customer’s have a good experience.

Simply stated, we will go back and we recommend this establishment.

Charly’s Restaurant is located at 106 South Campbell Street, Tybee Island, Ga.  They are open Wednesday through Sunday from 6 to 10 p.m. You can make a reservation by calling 912.786.0221.

Do let us know about your customer service experiences at this and any other establishment. We are always looking for examples.

Dr. Darryl

L. Darryl Armstrong

ARMSTRONG and Associates

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