Understanding the Emotional Dynamics of Pricing in Small Business Consulting
Late last year, I had a sales conversation that served as a powerful reminder of the critical role that pricing plays in running a successful business. A restaurant owner I had previously partnered with reached out in a state of distress. Her sales had plummeted, her financial records were a mess, and the possibility of selling her business loomed large as she attempted to secure a line of credit—often a daunting task without organized financials. During our call, I adopted a listening approach, allowing her to vent her frustrations. This technique fosters rapport and often resembles the role of an untrained therapist who possesses expertise in Excel.
In her situation, getting her financial records in order was not merely a technical necessity. It also carried significant emotional weight. The outcome of this work could dictate whether she would continue her entrepreneurial journey or step away from her business entirely. The stakes were incredibly high. It’s easy to overlook the human element in the mechanical process of estimating work and determining prices, especially when the individual on the other end is navigating such a personal struggle. In the realm of small business, emotions often run deep.
As I assessed her chaotic financials—her transactions, the extent of disarray, and the blend of personal and business expenses—I recognized that this wouldn’t be a simple tidy-up. I wanted to avoid a scenario where she felt overwhelmed by my proposed costs, especially since she was a valued repeat client and a seasoned entrepreneur who genuinely needed my assistance. Conversely, I needed to ensure I didn’t underprice the job, which could lead to feelings of resentment if it spiraled into a considerably larger project than anticipated.
So, I consulted a straightforward pricing worksheet I keep on hand for situations like this (I plan to share a link in the comments for anyone interested). I prepared a proposal of $4,200 and sent it her way. Surprisingly, she accepted immediately—signing the agreement and paying the deposit—and expressed that it was the first time in months she felt a sense of relief concerning her business situation.
This experience reinforced a lesson I’ve often encountered: when clients feel that you truly comprehend their challenges and needs, the cost becomes a secondary concern. They are looking for someone trustworthy to resolve their issues, particularly when they have the financial means to do so.
In the past, I’ve undervalued similar projects and learned valuable lessons. It’s tempting to estimate based on the hours you think it should take,
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