The Hot Topic

It seems that whenever I talk with managers and some partners about difficult situations that they encounter, fee discussions with clients rise to the top. There seems to be a real apprehension among providers to discuss their fees. It takes confidence in yourself, your work and your worth. Without those, your conversations will be hard to have and avoided whenever possible.

Not A Confrontation

One difficulty is that the fee discussion can feel confrontational. And it will be if you aren’t prepared otherwise. Rather than be surprised and uncomfortable when the fee question arises, consider these three important factors to help you.

1. Just about everyone has a question about the fees. Expect it. Be prepared for it. Know the value of what is required to produce your finished product and how you will communicate it. Ask about what they are really concerned about. It may not be the fee itself. It could be paying the invoice all at once or the timing of the invoice in the downside of their revenue cycle.
2. Fee resistance is hardly ever about money. Even though fees are the expressed concern, it’s really about value. Clients who question your fee are trying to determine whether the price is justified for the value of what they get. What can you tell them that helps them with that decision? Your accessibility? Expertise? Assurance? Convenience? Discussion about strategy options? Advice on how to achieve their company’s goals? These are all value inputs, even though on some of them may be hard to put dollar amount. Let your client know of these intangibles.
3. Too many times, people don’t know all of what they are paying for. Be clear about what you provide and produce. Notice the value implied in these two statements regarding the same deliverable.

• “We will prepare your tax return for $X”

• “We will collect all your necessary information to produce a draft return. Then we review it for completion and accuracy. Finally, we consult with you about any additional tax saving strategies that may be available to you. This process is conducted by trained and competent professionals, under the watchful eye of experienced CPAs. The total fee is $X”

I fully agree with Warren Buffett when he said, “Price is what you pay and value is what you get.”

Reframe Around Value

There is so much more that could be said about fee discussions. That’s why it is a topic in a couple of the Partner-Pipeline® courses. The point is that whenever you talk about fees, you are better served to reframe the discussion around value. Don’t discuss money until you are confident that they understand what they are getting and you are confident of the value you offer.

Yes, you will find that some clients just won’t value your service enough to pay for it, which is perfectly fine. Better to find out early than after the fact. You will discover that some of your clients aren’t interested in being your client. And the ultimate benefit to both of you may be having the dreaded fee question.