I’ve coached many consultants who followed my advice and began using value-based project fees, instead of charging by the hour. This drastically improves their profits! Unfortunately, a few of them eroded these new profits by allowing either scope creep or scope seep.
Have you heard of scope creep and scope seep?
Scope Creep – is when your client requests services beyond the scope of the original corporate project or individual work agreement. They may request additional time from you, or ask for help in areas that exceed what they engaged you to do. And for some reason you keeping saying yes!
Scope Seep – is when you as the consultant add in more time, more value, sessions, etc. even though this was not expected by your client. This may temporarily make you feel better, but unfortunately, your client usually has zero appreciation for all the extra work you’re doing.
I’d say about 80% of consultants, regardless of whether they are working with private clients or corporations, are working way too hard. They feel they have to keep doing more and giving more to be of value. If you are falling into this trap, could it be that you lack confidence in your work? Do you see yourself as unworthy to charge higher rates so you feel the need to pour on extras?
You can avoid the traps of both scope creep and seep using the following recommendations:
Clearly communicate with your client to understand their dominant buying motive.
Right from the beginning you need to really understand the objectives your client is looking to achieve. Before you determine your value-based project fee, you want to be crystal clear on what success looks like to them. When you aren’t clear what their dominant buying motive is, the project gets unwieldy as the client keeps trying to get you to deliver what they want but never articulated.
See yourself as a respected partner, not a commodity.
Think about the professionals you admire and respect. Do you expect your surgeon to throw in an extra procedure? Do you think the electrician setting up your sound system, should rewire your lighting for free? Here’s the problem when you allow your client to add on extra work, they will begin taking you for granted. You have to think of yourself as being on the same level as a partner. You don’t want to catch yourself thinking something like, “I’m the lowly business owner and he/she is a VP of a powerful organization.”
Gain trust by teaching your client what they really need.
Most of the time, as a consultant getting to know your client, you will see problems or missed opportunities. Rather than just fixing them, it’s your job to educate your client. I’ve learned when I’m working on a client project to keep my eyes wide open. If I’m observing challenges that are hurting my client from obtaining the results they want, I share my solutions with them. Since I’ve gained their trust, they know the additional work I’m suggesting is in their best interest and I get paid for it!
Remember, more isn’t necessarily better.
Many business owners give stuff away because they feel that’s what they have to do to be perceived as valuable. But what makes you feel good doesn’t automatically translate into value in the eyes of your client. When I no longer flooded my clients with recaps, reports, etc. they started getting even better results than I expected! It’s because it was less labor intensive for them too. And as you know, time has an incredibly high value for busy professionals. Think about how you can help your clients get the same great results with less work – for you and for them!
If you’re noticing some erosion in your profit margin, take the time to see if scope creep or seep is a factor. You deserve to be well-paid for the results you deliver.
Sarah’s Predictable Results Insights
- Which is more of a challenge for you – scope creep or scope seep?
- What could be the underlying issue to this problem?
- Which strategy from today’s article could help you avoid this trap in the future?
If you haven’t done so already, make sure to download my report, 8 Acceleration Secrets to Create Higher Velocity in Your Business Results, where I share solutions to stagnant revenue growth. Sometimes, we lack the objectivity we need to see what is getting in the way of profits. It may be time for strategic one-on-one coaching. To explore this option, please contact me at 1-800-267-3245 for a complimentary strategy session to see how we may be of service to you.