18 Ways of Acquiring High-End Consulting Clients Part 1
The other day, horror of horrors, a guy was caught masturbating on the Skytrain, Vancouver's local train system connecting the surrounding municipalities with Vancouver.
And where were the Skytrain security guys when you needed them to take care of odd events?
Security people were busy inspecting tickets because the inspectors were... hell knows where.
So, everyone was busier than a one-legged man at an arse-kicking contest but doing the wrong thing.
The same is happening to client acquisition in many consulting firms.
While everyone is frantically running around like poisoned mice, trying to bring in more sales volume, a huge part of that sales volume is landed at a deep discount.
According to a RainToday study, over 60% of all consulting projects are landed at a discount.
Many consulting firms willingly offer give deep discounts but the sales volume must be brought in.
The problem is this.
Based on an old McKinsey study, every 1% sales volume increase can add as much as 3.2% to your profit. But every 1% of price increase can add as much as 11.1%.
Then why do so many consulting firms are chasing the 3.2% at the expense of the 11.1%?
Hell knows.
And this is what we discuss this month's euphorically stimulating episode of Commando Consulting, entitled, "18 Ways of Acquiring High-End Consulting Clients Part 1"
And where were the Skytrain security guys when you needed them to take care of odd events?
Security people were busy inspecting tickets because the inspectors were... hell knows where.
So, everyone was busier than a one-legged man at an arse-kicking contest but doing the wrong thing.
The same is happening to client acquisition in many consulting firms.
While everyone is frantically running around like poisoned mice, trying to bring in more sales volume, a huge part of that sales volume is landed at a deep discount.
According to a RainToday study, over 60% of all consulting projects are landed at a discount.
Many consulting firms willingly offer give deep discounts but the sales volume must be brought in.
The problem is this.
Based on an old McKinsey study, every 1% sales volume increase can add as much as 3.2% to your profit. But every 1% of price increase can add as much as 11.1%.
Then why do so many consulting firms are chasing the 3.2% at the expense of the 11.1%?
Hell knows.
And this is what we discuss this month's euphorically stimulating episode of Commando Consulting, entitled, "18 Ways of Acquiring High-End Consulting Clients Part 1"
posted by Bald Dog @ Wednesday, January 19, 2011
3 Comments:
At Wednesday, 19 January 2011 at 12:52:00 GMT-8,
Anonymous said…
Happy New Year. You are so correct when you point out the importance of pitching only those members of companies and organizations who have signature authority over your consulting contracts, talking to anyone else is just a lesson in pain and is a resource drain. I would suggest that one could go even further and use your discussion about strategic thinkers verses tactical thinkers as a potential client filter. When one finds oneself in a conversation with a true signature authority who really wants to play the tactical conversation, you already know that there is no room to operate, break contact!
Jim Uhlmann
Hale'iwa, Hawai'i
At Saturday, 22 January 2011 at 12:40:00 GMT-8,
American C.H.E.F. Consulting said…
Tried sending you and email and it was returned. How do I email you.
chef Johnny
At Friday, 28 January 2011 at 19:34:00 GMT-8,
Bald Dog said…
Jim,
It's a very good point. Forcing tacticians to think strategically is like forcing fish to tap dance.
And, as you've pointed out, the sooner we break contact, the more of our sanity we can retain, and we can go home in reasonably good mental and emotional condition.
We don't feel washed out.
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