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Value-Based Fees: How to Charge - and Get - What You're Worth, by Alan Weiss
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In this thoroughly revised edition of his classic book, Alan Weiss shows how consulting fees are dependent on only two things: value provided in the perception of the buyer and the intent of the buyer and the consultant to act ethically. Many consultants, however, fail to understand that perceived value is the basis of the fee, or that they must translate the importance of their advice into long-term gains for the client in the client's perception. Still others fail to have the courage and the belief system that support the high value delivered to clients, thereby reducing fees to a level commensurate with the consultant's own low self-esteem. Ultimately, says Weiss, consultants, not clients, are the main cause of low consulting fees.
- Sales Rank: #308415 in Books
- Published on: 2008-09-02
- Original language: English
- Number of items: 1
- Dimensions: 9.55" h x 1.10" w x 7.30" l, 1.40 pounds
- Binding: Hardcover
- 288 pages
From the Inside Flap
Value-Based Fees
When Value-Based Fees was first published in 2002, it quickly became the go-to book for consultants who needed a reliable resource for determining how much they should charge their clients for their services.
In this thoroughly revised edition of his classic book, Alan Weiss shows how consulting fees are dependent on only two things: value provided in the perception of the buyer and the intent of the buyer and the consultant to act ethically. Many consultants, however, fail to understand that perceived value is the basis of the fee, or that they must translate the importance of their advice into long-term gains for the client in the client's perception. Still others fail to have the courage and the belief system that support the high value delivered to clients, thereby reducing fees to a level commensurate with the consultant's own low self-esteem. Ultimately, says Weiss, consultants, not clients, are the main cause of low consulting fees.
Filled with stories of successful consultants, Value-Based Fees clearly illustrates how consultants can educate their clients about value determining worth and consequent investment. Weiss's value-based fees approach is about establishing a win-win dynamic with clients, while accommodating buyers' egos and their belief that "you get what you pay for."
This second edition provides proven step-by-step guidance for establishing value-based fees. The book contains Weiss's latest techniques and approaches, which embrace the new technology, globalization, competition, and societal changes affecting our world today. The new edition contains sample proposals, letters of agreement, and other practical tools. It includes
- Updated examples throughout the book
- Current information on ethical issues
- Guidance on making consulting scalable
- Fee formulas for today's marketplace
- New chapters on building wealth and the implication of technology fees
Value-Based Fees clearly explains how to charge for your value and get what you're worth, providing nontheoretical, pragmatic advice that will help to improve any consultant's practice immediately.
From the Back Cover
Praise for Value-Based Fees
"Many people say they understand value pricing. The undisputed global thought leader on the subject is Alan Weiss. He has personally sold over $100M in value-based fees and personally mentored over 650 consultants—helping them to increase revenue by over $600M. Alan Weiss can help anyone who is prepared to listen."
— Rob Nixon, consultant to the accounting profession, www.robnixon.com
"Alan Weiss's value-based fees approach has transformed my business. I'm more efficient, and my clients get better results. It's a huge win-win."
—Amanda Setili, managing partner, Setili & Associates, LLC
"The implementation of value-based fees caused a significant growth of our revenues and profit. Even more important, following Alan's business model led to better relationships with our clients and to projects that focus on business outcomes rather than on deliverables."
—Dr. Guido Quelle, managing partner, Mandat GmbH, Dortmund, Germany
"Within 18 months of working with Alan Weiss and reading his book on value-based fees, I achieved over one million dollars in revenue as a solo practitioner, and have grown that revenue in each of the past three years. There is simply no greater ROI."
—Nancy MacKay, Ph.D, president, Inspire Action International Inc., Vancouver, Canada
"Your value-based fees concepts have helped me focus on clients' outcome therefore transforming my ability of turning prospects into clients from 20% to 80%. The impact on my cash flow has dramatically improved as well. Thank you."
—Chad Barr, president, CB Software Systems, Inc. Shaker Heights, Ohio
About the Author
Alan Weiss—consultant, speaker, and author of the best-selling The Ultimate Consultant—is the founder and CEO of Summit Consulting Group, Inc. His clients have included Merck, Hewlett-Packard, General Electric, State Street Corporation, and Times Mirror Group. He is a highly sought-after keynote speaker. Success Magazine declared him "A worldwide expert in executive education."
Most helpful customer reviews
29 of 31 people found the following review helpful.
Great book judged on its own merit
By Steven D. Mc Gee
Yes, this book has material from some other books by Weiss. I don't feel let down, however.
Like GTD, the ideas in this book are ground-breaking and some find it hard to accept. Not that it's hard to imagine how someone could figure this out, or that the concepts are so counter-intuitive. Just that most people think prices are a function of cost, or that there is 'a' market price for a given good or service.
What Weiss points out here is that value, or price, is subjective. This is something everyone experiences daily but can rarely notice.
Second, and most importantly, he outlines how to contract for consulting using a value-based fee, including the sales process. Weiss makes a good case for adopting this approach - good for the consultant and good for the client.
Here's an example of why value-based fees are good (not from the book): hourly, or 'time-metered' pricing will add incentive to increase the low-value '80%'of potential activities to a project. Sticking with value-based fees, or outcome-based fees, puts the incentive on focusing only on the '20%' of activities that will make a real difference. If I hire a consultant, I want results, not deliverables.
16 of 16 people found the following review helpful.
An Expanded Version of His Million Dollar Consulting
By Amazon Customer
This book, and some of his other most recently published books, are basically 2nd tier, in that they take points addressed in decent detail in his earlier books: "Million Dollar Consulting", "The "Consulting Bible", and "Getting Started in Consulting", books I have rated as 5 stars and still do, and expand upon them. This expansion seems more to get enough material to write a new book, than to provide a lot more value-added material. I don't view them as a waste of money, because the expanded information provides additional supporting information from the author's viewpoint. But most of us are able to arrive at similar conclusions by thinking about the points in his highly rated books above, rather than gaining any new or major benefits from his added material. For the beginning consultant, these may fill more of a need than I saw. Having said all that, I am forced to add that the principle in the title has been instrumental in increasing my longevity and success in the consulting field -- the points that were first driven home to me in Alan's seminal book "Million Dollar Consulting". I just feel that he makes the point sufficiently in that book alone -- I am frequently rereading those three above, while barely referring to his more recent books, including this one.
15 of 17 people found the following review helpful.
Great Practical Advice - Especially for the Timid
By Brad Friedman
Great book. I'm a "recovering attorney" who hasn't practiced law actively for several years. When I did, I hated the billable hour system as it did not reward me for the value I provided clients. Unfortunately, that billable hour mindset was ingrained in me. It's the way I think about billing. I am starting a consulting business and this book was recommended to me. It was difficult for me to "get it" at first. I had to read and re-read many pages/concepts. Not because the book was difficult to read, but because I was stuck in a different mindset. I slowly started to get it and enjoyed the book immensely. I will be using much of the advice in the book as I begin my consulting business and into the future. This book is a must read for anyone who sets a value on themselves according to time.
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