| There are some buyers out there who | | | | the price you have to flinch and the seller is likely |
| understand value but there are many of them | | | | to reduce the price. Yes, likely, but who says that |
| who understand only price. A few years ago | | | | you have to be a typical "likely" seller. When the |
| when I was doing a course for my Certified | | | | buyer flinches you can also recommend an |
| Management Consultant accreditation, I had some | | | | appointment with a neurologist. Check what the |
| debates with one of the instructors. He kept | | | | buyer's step is to this. Or if you're not sure what |
| saying that my idea about value was a delusion, | | | | to say, just say what - according to Alan Weiss - |
| and the reality of consulting was the number of | | | | can be said in almost any situation: "What's your |
| hours I spent working with the client. His idea was | | | | point?" You will see some major league |
| that clients must be able to derive huge value | | | | back-pedalling on the buyer's end. After all, they |
| from my services, but I could only get paid for | | | | expect you to argue and defend yourself and |
| the number of hours I actually worked because | | | | your fees.But defence can be dangerous, as |
| of the obscure nature of "value".I may be wrong, | | | | General Patton explained in his address to his |
| and unlike him, I don't have an MBA, but I believe | | | | troops in England, on 5th June 1944."I don't want |
| if the client derives huge value from my help, a | | | | to get any messages saying, 'I am holding my |
| deserve more than a competitive(ly low) hourly | | | | position.' We are not holding a Goddamned thing. |
| rate. I got into business to overcome the typical | | | | Let the Germans do that. We are advancing |
| wage slave syndrome as an employee, and it | | | | constantly and we are not interested in holding |
| would be plain silly to become a self-employed | | | | onto anything, except the enemy's balls. We are |
| wage slave. I also believe that I shouldn't be | | | | going to twist his balls and kick the living shit out |
| penalised just because I don't take much time and | | | | of him all of the time. Our basic plan of operation |
| effort to create that new value for the client.1. | | | | is to advance and to keep on advancing |
| Nickel-And-Dimers Waste A Hell Of A Lot Of | | | | regardless of whether we have to go over, |
| Your Time Have you ever noticed how easy it is | | | | under, or through the enemy. We are going to go |
| to come to agreement with prospective buyers | | | | through him like crap through a goose; like shit |
| who actually have an intention to change and now | | | | through a tin horn!" I believe in win-win situations, |
| is just looking for a fit with a consultant with | | | | but you can create win-win only with win-win |
| whose help and guidance to go through the | | | | people. It's a mentality. I also believe that you |
| changing process?Now contrast this to | | | | have the right to - figuratively speaking of course |
| Nickel-And-Dimers, who want to make sure all Ts | | | | - wipe the floor with buyers who are pushing |
| are crossed and all Is are dotted even before | | | | you.The other problems is the so-called |
| making a shred of commitment.When Carl | | | | satisfaction. And Nickel-And-Dimers usually have a |
| Rogers, a pioneer in social psychology was asked | | | | very twisted notion of satisfaction. They believe |
| about the most important aspect of human | | | | that if they buy a car from you, it is their |
| interaction when there is a strong difference of | | | | statutory right to receive free driving lessons |
| opinions, he said this: "Unconditional positive regard | | | | from you and at the end of the day you pay for |
| for the other person. It's about holding the other | | | | their driving licences. Then they try to convince |
| person in a positive light and assuming that his/her | | | | you that it is also your duty to service that car |
| interest is for the best interest of the discussion | | | | for free until you die.As Jim Rohn says, "Liars lie, |
| and the relationship, regardless of what the | | | | cheaters cheat and the perplexed are always |
| person actually believes at that moment."A few | | | | perplexed." And complainers always complain. The |
| months ago the business development manager | | | | tendency for complaining is more than skin-deep. |
| of a web design firm told me "I've forgotten | | | | Just think of a tiger. It's not just the fur that's |
| more about marketing than you will ever learn. I | | | | striped, so is the skin. And it's striped in the same |
| just don't have time to do it." Yet, instead of | | | | pattern. You can hardly change that. Then let's |
| implementing proper marketing (which he's | | | | stop trying.5. Nickel-And-Dimers Prevent You |
| apparently a master of), his firm peddles its | | | | From Attracting Great Clients Nickel-And-Dimers |
| services using three call centres (Los Angeles, | | | | take up so much of your time and effort that it |
| India and China) to cold call harass people to find | | | | can prevent you from attracting great clients. |
| new business. It seems the worst | | | | There are several facets of this problem. One is |
| underperformers claim to know the most about | | | | that they demand so much of your time and |
| everything.Remember, low-level prospects usually | | | | attention that you simply have no time left to |
| drop to an even lower level as clients. Send them | | | | diligently execute your marketing plan. For a while |
| on their way with an imaginary recreational kick in | | | | your practice is carried forward by momentum |
| their butts, and move on with a lesson learnt.2. | | | | from past clients, but since you're not planting |
| Nickel-And-Dimers Like Bragging About The | | | | today, tomorrow's harvest is doubtful. |
| Special Deals They've Received A few years ago | | | | The other problem is that the quality of your |
| a friend of mine worked with a large | | | | service falls. One reason for that is now your |
| manufacturing company, and some six years later | | | | time is occupied by taking remedial action to |
| that manufacturing company referred one of their | | | | please Nickel-And-Dimers. And this action not only |
| vendors to my friend. Yes, the manufacturing | | | | eats up your time, but also eats you up |
| company was a Nickel-And-Dimer and they were | | | | emotionally. And the real problem is that you act |
| bragging to their vendors that with the right | | | | out these emotional problems on great clients. |
| pressure they could arm-twist my friend to give | | | | Yes, you may want to argue here, but don't. Life |
| them very very good per diem rates. The | | | | is holistic and non-compartmentalised. If you're |
| vendor expected my friend to give the per diem | | | | hurt, then you will show that hurt feeling both at |
| rate he was charging the manufacturing company | | | | work and at home. Personally I wouldn't want to |
| six years before. It was a retarded situation. He | | | | be operated on by a surgeon whose teenage |
| was given a fait accompli: "Either you give us the | | | | daughter has just run away with the Hell's Angels, |
| same rate you gave them or you're out." And | | | | or whose family dog has just been eaten by a |
| sadly my friend did, simply because the immediate | | | | crocodile in the back garden swimming pool.Clients |
| smell of money was more attractive than the | | | | come to you not merely for the service you |
| gut-wrenching stench of a slowly decomposing | | | | provide (accounting, doctoring or lawyering). They |
| project that was waiting for him down the | | | | come to you for the overall experience. And |
| road.And it was waiting all right. The client | | | | experience is a highly emotional thing. If you're on |
| demanded detailed reports on everything. My | | | | an emotional roller coaster, your clients receive a |
| friend had to write reports on report, memos and | | | | roller coaster of an experience. It is your job to |
| meetings. He had to document every second of | | | | keep yourself on even keels, so your clients |
| his time. Really. The client demanded a time sheet | | | | receive a consistent experience with you.6. |
| from him in 15-minute segments. He would hand in | | | | Nickel-And-Dimers Like Delaying and Forgetting |
| the time sheet and the client would decide which | | | | Payments Now you've secured everything. Really. |
| segments got paid and which got deleted. On | | | | The fat is in the fire, the die is cast, the gun is |
| average, 35% of his time sheet got unpaid. When | | | | loaded, the fuse is burning, the sausage is sizzling, |
| he asked the client why, the client just shrugged, | | | | the stew is simmering, the jig is up, the fate is |
| "I don't think it was necessary for the project." | | | | sealed, the stamp is licked, the goose is cooked |
| Imagine, here is this egotistical, stupid idiot who | | | | and even the cat is out of the bag. It's time for |
| hasn't been able to solve his problem for himself, | | | | payment. And this is where the trouble |
| and then when the hired help does the work, he | | | | started.Nickel-And-Dimers left their wallets at |
| decides what's needed and what's not.The | | | | home, they have to check the price with their |
| problem is that when Nickel-And-Dimers brag, | | | | spouses, dogs, cats or the spirit of their long-dead |
| they don't brag about the great service they've | | | | parrots. All in all, by now they've got everything |
| just received. No! They brag about how cheap the | | | | they wanted from you, and as far as they're |
| service was. And just as birds of the feather | | | | concerned, you burn in one of the most |
| flock together, so do Nickel-And-Dimers. So, if | | | | pestilential pits of hell in screaming agony, before |
| you accept work with one of these business | | | | they give you even a penny.Of course there are |
| cretins, rest assured that you will be favourably | | | | cases when Nickel-And-Dimers actually start |
| inducted into the world if Nickel-And-Dimers, and | | | | working with you. You were generous and |
| many of them want your help. And from here on | | | | trusting enough to give them instalment |
| it's a downwards spiral. Bad projects attract each | | | | payments. But the payments are not coming. The |
| other. The world will soon know that you're the | | | | cheques seem to be in the mail every time you |
| Nickel-And-Dimers specialist and more of them will | | | | call but never seem to arrive. Then they get |
| come.I believe money is the walk of the talk. | | | | irritated by your calls to collect your money and |
| When you ask people to invest in their own | | | | threaten you that unless you stop making these |
| futures, you quickly learn how serious they | | | | "collecting" calls, they simply cancel the project |
| actually are by whether or not they cough up the | | | | and you'll never see your money.A few years |
| dough.3. Nickel-And-Dimers Ruin Your Market | | | | ago I started working with a high-tech firm and |
| Reputation And Your Credibility In The Eyes Of | | | | the very first cheque the president wrote me |
| Great Clients While Great Clients and | | | | bounced. When I asked him what happened, he |
| Nickel-And-Dimers hardly ever flock together, still, | | | | told me that he suddenly took all the money |
| Great Clients can hear from the good deals | | | | from the company's bank account to put down |
| Nickel-And-Dimers got cut for themselves. How | | | | the downpayment on a new BMW. When I asked |
| do you think it will impact the perception Great | | | | him when I could expect a real cheque, he went |
| Clients have about these deal-cutters. Why do | | | | on his usual delusional journey about bills and |
| you think people haggle with car salespeople and | | | | expenses and tough times. When I asked him |
| realtors but not with lawyers or doctors?Car | | | | about why he bought the car, he said it was a |
| salespeople and realtors are notorious for "cutting | | | | special deal and he just couldn't resist.So, here is |
| deals": "Buy now and I'll give you a special deal." In | | | | this guy with two cars in the driveway and no |
| spite of the "special deal", most people hate this | | | | money in the company's kitty. And he's just too |
| approach because they know what the special | | | | busy hiding from his vendors and dodging |
| deal really is: No big deal. Just a previously inflated | | | | payments.7. Nickel-And-Dimers Demand Huge |
| price shrunk back to normal with lots of fanfare | | | | Upfront Commitments From You Before They |
| and manipulation.My friend, Katie (not her real | | | | Commit To Projects Nickel-And-Dimers expect |
| name) is a web designer. She got a call from Fred | | | | you to jump through many loops before they |
| on a web design project. With lots of pep talk and | | | | make, not even a commitment, but a mere |
| promises on future projects, Fred convinced Katie | | | | decision. Just think. The ultimate Nickel-And-Dimers |
| to design a site with a serious drop on her fees. | | | | are governments. Have you ever checked their |
| Fred manipulated her by telling her how good this | | | | retarded processes of hiring consultants? A few |
| would be for her portfolio. By the way, I've | | | | years ago a colleague, to the demand of her local |
| always believed that this "portfolio stuff" is highly | | | | government in order to win the contract, dropped |
| overrated. Smart clients want to see value not | | | | all her clients. She started working on the |
| portfolios. Well, she accepted the deal. And then | | | | government contract and then two months later |
| two more.Then she found out that Fred was just | | | | the committee pulled the plug on the project. We |
| a broker between her and some real buyers. Fred | | | | know that the most amount of work goes into |
| knew that the lower price he could demand from | | | | projects right at the beginning. Nevertheless, after |
| Katie, the more money he would pocket. I have | | | | putting in all the initial work, all she got paid was a |
| nothing against brokers per se. I too broker | | | | pro rated hourly fee.But at least that was paid |
| projects here and there. Over the years, thanks | | | | for. But she was expected to climb the proverbial |
| to my military training, skydiving and other | | | | mountain of broken glass and rusty nails barefoot |
| experiences, I've become a damn good project | | | | and butt-naked just to win the contract. And she |
| manager and I have an innate talent to have | | | | even relinquished all her clients for this "big gig". |
| people work together as a - real - team towards | | | | And the big gig bombed miserably. Then it took |
| a common objective, so I co-ordinate large | | | | her a good six months of living on her savings to |
| high-stake projects with functional experts. But I | | | | get some clients back.So, be very careful about |
| do have a problem that the greedy bastard Fred | | | | what sort of commitments you make upfront. |
| increased his money by lying to a good designer | | | | Make sure that every commitment is a mutual |
| about future projects.And rest assured that Fred | | | | commitment. For instance, if the prospect |
| will brag to his friends, that "If you need a | | | | requests a proposal from you to think more |
| super-cheap web designer, let me know. My | | | | about it, then ask for a small payment, which |
| contact is super-cheap and super-good." Yes, she | | | | later you can lump into the project. The payment |
| is super-cheap because she was manipulated by | | | | shows the prospect is serious.8. Nickel-And-Dimers |
| this scumbag, and she is super-good because | | | | Demand Extensive Proposals Just To Steal Your |
| doing excellent work is part of her DNA. By | | | | Intellectual Property For In-House Implementation |
| genetic design she doesn't rest until she produces | | | | Nickel-And-Dimers tend to call it the bidding |
| "WOW!" calibre work. And these are the people | | | | process but realistically it's nothing more than |
| slime balls like Fred are seeking for "contract | | | | euphemism for the theft of your intellectual |
| work".Then she participated in my Fee Audit and | | | | property. These people demand detailed |
| Protection Plan programme and learnt that clients | | | | information on everything and then with your |
| don't pay for portfolios but for value. With this | | | | information they often go to the lowest bidder |
| realisation Fred was immediately out of the | | | | for implementation.Just think about the typical |
| picture.4. Nickel-And-Dimers Do Most Of The | | | | request for Proposal (RFP). It gives you a detailed |
| Complaining About You And Your Services | | | | guideline on how to write that proposal. So, the |
| Nickel-And-Dimers are extremely good at | | | | RFP creates a level playing field where are unique |
| complaining. They keep nudging you that they | | | | value is cut out of services and bidders are |
| could get the same service next door a lot | | | | completing purely on price. And RFPs usually |
| cheaper. Well, if they could, they wouldn't be | | | | specify very expensive and detailed proposals. A |
| arguing with you. They would go and get that | | | | proposal I've seen lately started with a 21-page |
| cheaper service. But that cheaper service won't | | | | executive summary. The whole proposal was 410 |
| be the same.There are some common factors in | | | | pages. The appendix section was a separate |
| projects. Two of them are are... | | | | document some 700 pages long. Can you imagine |
| | | | how many hours it takes to create such a |
| Certainty of successful completion | | | | monster? And who's going to read it all. Maybe a |
| Velocity of progress | | | | civil servant who has nothing else to do anyway.9. |
| And your fee is a reflection of these two | | | | Nickel-And-Dimers Never Become Repeat Clients |
| elements. The funny thing is that | | | | And Never Refer You Anyone This is just a |
| Nickel-And-Dimers want to maximise both factors | | | | foregone conclusion from the previous points. |
| while minimising your fees.If I want to travel from | | | | They create a pretty relationship dynamic and |
| New York to Los Angeles, I can take different | | | | blame you for everything. So, it's just normal that |
| options. The option with the lowest investment | | | | they spread only bad words about you and your |
| can be a pair of running shoes. That will give me a | | | | services. What else can they do? What they don't |
| certain velocity of progress and certainty of | | | | realise is that they are the only rotten apple in a |
| arrival. But if I invest in a plane ticket, I increase | | | | whole barrel of good apples (great clients). And as |
| both the velocity of progress and certainty of | | | | we all know even one bad apple can spoil the |
| arrival. I, the buyer, can choose which option to | | | | whole barrel.Summary So, what is the lesson |
| take and I get what I paid for.And of course this | | | | here? Sometimes it's worth negotiating, reasoning |
| complaining can go as far as the courtroom. When | | | | and explaining things to people but reasoning with |
| these people make up their minds to get full | | | | Nickel-And-Dimers is the same as wrestling with a |
| refund on a project that failed (over 90% of | | | | pig. You get dirty and the pig won't enjoy it |
| failed consulting projects fail because of clients' | | | | either.It's the same as trying to negotiate with |
| diminishing commitment - Dr. Edgar Schein, | | | | Hitler about world domination. No. Instead of |
| Process Consultation), they stop at nothing to | | | | arguing and reasoning, the Allies shoved a bomb |
| blame their consultants and are willing to go to | | | | up his butt and blew him and his empire to hell. |
| any length to recover their investments.Studies | | | | Now I don't suggest that you do that to your |
| done by McKinsey & Co also indicate that... | | | | Nickel-And-Dimers, but you're free to walk away, |
| | | | saving your sanity and start with a clean slate and |
| 75% of solutions don't return a profit to the | | | | live another day.And what is the other option? |
| buying company | | | | You can try to please Nickel-And-Dimers and |
| 50% of solutions don't deliver the expected value | | | | they'll consume your life. They are the people |
| | | | who just take, take and take some more. And |
| Now referring back to Dr. Schein's research, we | | | | you may try to be the good-hearted Samaritan, |
| can see that more often than not it is clients who | | | | but eventually you get run to the ground and |
| disallow consultants to deliver the value that was | | | | resentment starts kicking in. As the former UN |
| laid out in the agreements. | | | | General Secretary, Dag Hammarskjold once said, |
| Nickel-And-Dimers complain because to them this | | | | "It is more noble to give yourself to one individual |
| is negotiation and they feel this is the only way to | | | | than labour diligently for the salvation of the |
| get a fair deal. They learnt in some Arab bazaar | | | | masses." Being a Nickel-And-Dimer is a serious |
| that haggling is part of life and without haggling | | | | disease, and most of us are not qualified |
| they would be taken for a ride. So, they apply | | | | (hopefully not interested either) to cure these |
| what they've learnt: "C'mon man, you can do | | | | hopelessly lost souls. The best we can do is just |
| better than that" or "Is this your best price". The | | | | to avoid them with amazing accuracy and move |
| funny thing is that when you start taking value | | | | on with our own lives.Organisational Provocateur |
| elements out of your agreement, they scream | | | | Tom "Bald Dog" Varjan of Dynamic Innovations |
| like the proverbial stuck pig. They want it all and | | | | Squad helps providers of professional services to |
| they want it now but at a lower price.In | | | | achieve the income and lifestyle levels they desire |
| negotiation the experts teach that upon hearing | | | | through high-trust high-impact client relationships. |