The Emotional and Practical Dynamics of Pricing in Small Business Consulting
In the world of small business, pricing is not merely a numerical figure; it’s an emotional touchpoint that can significantly impact the lives of entrepreneurs. A recent sales call I had with a restaurant owner underscored this idea and reminded me of the delicate balance between practical problem-solving and emotional support in my role as a consultant.
Last year, I received a frantic call from a client with whom I had previously collaborated. She was overwhelmed—sales had plummeted, her financial records were disorganized, and she was contemplating selling her business. Adding to her stress, she needed to secure a line of credit but lacked clear financial documentation for the bank. During our conversation, I took the opportunity to let her express her concerns and frustrations. In moments like these, I often find that stepping back and allowing clients to vent can foster a deeper connection, transforming me into an impromptu therapist, albeit one who happens to have a background in Excel.
The situation at hand was not just about balancing numbers on a spreadsheet; it was profoundly emotional for her. This business was not merely a source of income but a significant part of her identity and future aspirations. In these instances, the stakes are high, and it’s crucial to remember that behind every business is a person navigating their challenges.
As I reviewed her financial records, I was hit with the realization that this would not be a straightforward task. The chaos within her accounts combined with the urgency of her situation meant I needed to approach the proposal thoughtfully. On one hand, I wanted to avoid shocking her with a high price, especially since she was a repeat client and someone I genuinely enjoyed working with. On the other hand, I recognized the importance of accurately valuing the time and effort required to deliver a thorough financial cleanup.
To ensure I was on the right track, I utilized my pricing worksheet for a reality check (which I’m happy to share with anyone interested). After careful consideration, I proposed a fee of $4,200. To my surprise, rather than negotiating, she signed the agreement immediately and paid the deposit. It was the first time in months, she shared, that she felt a sense of relief regarding her business challenges.
This experience reinforced an important lesson I’ve learned throughout my consulting career: when clients perceive that you genuinely understand their pain points, the cost of solutions becomes secondary. They are looking for a trusted advisor to help them regain control, especially when they
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