| There are some buyers out there who | | | | like the proverbial stuck pig. They want it |
| understand value but there are many of them | | | | all and they want it now but at a lower |
| who understand only price. A few years ago | | | | price.In negotiation the experts teach that |
| when I was doing a course for my Certified | | | | upon hearing the price you have to flinch and |
| Management Consultant accreditation, I had | | | | the seller is likely to reduce the price. |
| some debates with one of the instructors. He | | | | Yes, likely, but who says that you have to be |
| kept saying that my idea about value was a | | | | a typical "likely" seller. When the buyer |
| delusion, and the reality of consulting was | | | | flinches you can also recommend an |
| the number of hours I spent working with the | | | | appointment with a neurologist. Check what |
| client. His idea was that clients must be | | | | the buyer's step is to this. Or if you're not |
| able to derive huge value from my services, | | | | sure what to say, just say what - according |
| but I could only get paid for the number of | | | | to Alan Weiss - can be said in almost any |
| hours I actually worked because of the | | | | situation: "What's your point?" You will see |
| obscure nature of "value".I may be wrong, and | | | | some major league back-pedalling on the |
| unlike him, I don't have an MBA, but I | | | | buyer's end. After all, they expect you to |
| believe if the client derives huge value from | | | | argue and defend yourself and your fees.But |
| my help, a deserve more than a competitive(ly | | | | defence can be dangerous, as General Patton |
| low) hourly rate. I got into business to | | | | explained in his address to his troops in |
| overcome the typical wage slave syndrome as | | | | England, on 5th June 1944."I don't want to |
| an employee, and it would be plain silly to | | | | get any messages saying, 'I am holding my |
| become a self-employed wage slave. I also | | | | position.' We are not holding a Goddamned |
| believe that I shouldn't be penalised just | | | | thing. Let the Germans do that. We are |
| because I don't take much time and effort to | | | | advancing constantly and we are not |
| create that new value for the client.1. | | | | interested in holding onto anything, except |
| Nickel-And-Dimers Waste A Hell Of A Lot Of | | | | the enemy's balls. We are going to twist his |
| Your Time Have you ever noticed how easy it | | | | balls and kick the living shit out of him all |
| is to come to agreement with prospective | | | | of the time. Our basic plan of operation is |
| buyers who actually have an intention to | | | | to advance and to keep on advancing |
| change and now is just looking for a fit with | | | | regardless of whether we have to go over, |
| a consultant with whose help and guidance to | | | | under, or through the enemy. We are going to |
| go through the changing process?Now contrast | | | | go through him like crap through a goose; |
| this to Nickel-And-Dimers, who want to make | | | | like shit through a tin horn!" I believe in |
| sure all Ts are crossed and all Is are dotted | | | | win-win situations, but you can create |
| even before making a shred of commitment.When | | | | win-win only with win-win people. It's a |
| Carl Rogers, a pioneer in social psychology | | | | mentality. I also believe that you have the |
| was asked about the most important aspect of | | | | right to - figuratively speaking of course - |
| human interaction when there is a strong | | | | wipe the floor with buyers who are pushing |
| difference of opinions, he said this: | | | | you.The other problems is the so-called |
| "Unconditional positive regard for the other | | | | satisfaction. And Nickel-And-Dimers usually |
| person. It's about holding the other person | | | | have a very twisted notion of satisfaction. |
| in a positive light and assuming that his/her | | | | They believe that if they buy a car from you, |
| interest is for the best interest of the | | | | it is their statutory right to receive free |
| discussion and the relationship, regardless | | | | driving lessons from you and at the end of |
| of what the person actually believes at that | | | | the day you pay for their driving licences. |
| moment."A few months ago the business | | | | Then they try to convince you that it is also |
| development manager of a web design firm told | | | | your duty to service that car for free until |
| me "I've forgotten more about marketing than | | | | you die.As Jim Rohn says, "Liars lie, |
| you will ever learn. I just don't have time | | | | cheaters cheat and the perplexed are always |
| to do it." Yet, instead of implementing | | | | perplexed." And complainers always complain. |
| proper marketing (which he's apparently a | | | | The tendency for complaining is more than |
| master of), his firm peddles its services | | | | skin-deep. Just think of a tiger. It's not |
| using three call centres (Los Angeles, India | | | | just the fur that's striped, so is the skin. |
| and China) to cold call harass people to find | | | | And it's striped in the same pattern. You can |
| new business. It seems the worst | | | | hardly change that. Then let's stop trying.5. |
| underperformers claim to know the most about | | | | Nickel-And-Dimers Prevent You From Attracting |
| everything.Remember, low-level prospects | | | | Great Clients Nickel-And-Dimers take up so |
| usually drop to an even lower level as | | | | much of your time and effort that it can |
| clients. Send them on their way with an | | | | prevent you from attracting great clients. |
| imaginary recreational kick in their butts, | | | | There are several facets of this problem. One |
| and move on with a lesson learnt.2. | | | | is that they demand so much of your time and |
| Nickel-And-Dimers Like Bragging About The | | | | attention that you simply have no time left |
| Special Deals They've Received A few years | | | | to diligently execute your marketing plan. |
| ago a friend of mine worked with a large | | | | For a while your practice is carried forward |
| manufacturing company, and some six years | | | | by momentum from past clients, but since |
| later that manufacturing company referred one | | | | you're not planting today, tomorrow's harvest |
| of their vendors to my friend. Yes, the | | | | is doubtful. |
| manufacturing company was a Nickel-And-Dimer | | | | |
| and they were bragging to their vendors that | | | | The other problem is that the quality of |
| with the right pressure they could arm-twist | | | | your service falls. One reason for that is |
| my friend to give them very very good per | | | | now your time is occupied by taking remedial |
| diem rates. The vendor expected my friend to | | | | action to please Nickel-And-Dimers. And this |
| give the per diem rate he was charging the | | | | action not only eats up your time, but also |
| manufacturing company six years before. It | | | | eats you up emotionally. And the real problem |
| was a retarded situation. He was given a fait | | | | is that you act out these emotional problems |
| accompli: "Either you give us the same rate | | | | on great clients. Yes, you may want to argue |
| you gave them or you're out." And sadly my | | | | here, but don't. Life is holistic and |
| friend did, simply because the immediate | | | | non-compartmentalised. If you're hurt, then |
| smell of money was more attractive than the | | | | you will show that hurt feeling both at work |
| gut-wrenching stench of a slowly decomposing | | | | and at home. Personally I wouldn't want to be |
| project that was waiting for him down the | | | | operated on by a surgeon whose teenage |
| road.And it was waiting all right. The client | | | | daughter has just run away with the Hell's |
| demanded detailed reports on everything. My | | | | Angels, or whose family dog has just been |
| friend had to write reports on report, memos | | | | eaten by a crocodile in the back garden |
| and meetings. He had to document every second | | | | swimming pool.Clients come to you not merely |
| of his time. Really. The client demanded a | | | | for the service you provide (accounting, |
| time sheet from him in 15-minute segments. He | | | | doctoring or lawyering). They come to you for |
| would hand in the time sheet and the client | | | | the overall experience. And experience is a |
| would decide which segments got paid and | | | | highly emotional thing. If you're on an |
| which got deleted. On average, 35% of his | | | | emotional roller coaster, your clients |
| time sheet got unpaid. When he asked the | | | | receive a roller coaster of an experience. It |
| client why, the client just shrugged, "I | | | | is your job to keep yourself on even keels, |
| don't think it was necessary for the | | | | so your clients receive a consistent |
| project." Imagine, here is this egotistical, | | | | experience with you.6. Nickel-And-Dimers Like |
| stupid idiot who hasn't been able to solve | | | | Delaying and Forgetting Payments Now you've |
| his problem for himself, and then when the | | | | secured everything. Really. The fat is in the |
| hired help does the work, he decides what's | | | | fire, the die is cast, the gun is loaded, the |
| needed and what's not.The problem is that | | | | fuse is burning, the sausage is sizzling, the |
| when Nickel-And-Dimers brag, they don't brag | | | | stew is simmering, the jig is up, the fate is |
| about the great service they've just | | | | sealed, the stamp is licked, the goose is |
| received. No! They brag about how cheap the | | | | cooked and even the cat is out of the bag. |
| service was. And just as birds of the feather | | | | It's time for payment. And this is where the |
| flock together, so do Nickel-And-Dimers. So, | | | | trouble started.Nickel-And-Dimers left their |
| if you accept work with one of these business | | | | wallets at home, they have to check the price |
| cretins, rest assured that you will be | | | | with their spouses, dogs, cats or the spirit |
| favourably inducted into the world if | | | | of their long-dead parrots. All in all, by |
| Nickel-And-Dimers, and many of them want your | | | | now they've got everything they wanted from |
| help. And from here on it's a downwards | | | | you, and as far as they're concerned, you |
| spiral. Bad projects attract each other. The | | | | burn in one of the most pestilential pits of |
| world will soon know that you're the | | | | hell in screaming agony, before they give you |
| Nickel-And-Dimers specialist and more of them | | | | even a penny.Of course there are cases when |
| will come.I believe money is the walk of the | | | | Nickel-And-Dimers actually start working with |
| talk. When you ask people to invest in their | | | | you. You were generous and trusting enough to |
| own futures, you quickly learn how serious | | | | give them instalment payments. But the |
| they actually are by whether or not they | | | | payments are not coming. The cheques seem to |
| cough up the dough.3. Nickel-And-Dimers Ruin | | | | be in the mail every time you call but never |
| Your Market Reputation And Your Credibility | | | | seem to arrive. Then they get irritated by |
| In The Eyes Of Great Clients While Great | | | | your calls to collect your money and threaten |
| Clients and Nickel-And-Dimers hardly ever | | | | you that unless you stop making these |
| flock together, still, Great Clients can hear | | | | "collecting" calls, they simply cancel the |
| from the good deals Nickel-And-Dimers got cut | | | | project and you'll never see your money.A few |
| for themselves. How do you think it will | | | | years ago I started working with a high-tech |
| impact the perception Great Clients have | | | | firm and the very first cheque the president |
| about these deal-cutters. Why do you think | | | | wrote me bounced. When I asked him what |
| people haggle with car salespeople and | | | | happened, he told me that he suddenly took |
| realtors but not with lawyers or doctors?Car | | | | all the money from the company's bank account |
| salespeople and realtors are notorious for | | | | to put down the downpayment on a new BMW. |
| "cutting deals": "Buy now and I'll give you a | | | | When I asked him when I could expect a real |
| special deal." In spite of the "special | | | | cheque, he went on his usual delusional |
| deal", most people hate this approach because | | | | journey about bills and expenses and tough |
| they know what the special deal really is: No | | | | times. When I asked him about why he bought |
| big deal. Just a previously inflated price | | | | the car, he said it was a special deal and he |
| shrunk back to normal with lots of fanfare | | | | just couldn't resist.So, here is this guy |
| and manipulation.My friend, Katie (not her | | | | with two cars in the driveway and no money in |
| real name) is a web designer. She got a call | | | | the company's kitty. And he's just too busy |
| from Fred on a web design project. With lots | | | | hiding from his vendors and dodging |
| of pep talk and promises on future projects, | | | | payments.7. Nickel-And-Dimers Demand Huge |
| Fred convinced Katie to design a site with a | | | | Upfront Commitments From You Before They |
| serious drop on her fees. Fred manipulated | | | | Commit To Projects Nickel-And-Dimers expect |
| her by telling her how good this would be for | | | | you to jump through many loops before they |
| her portfolio. By the way, I've always | | | | make, not even a commitment, but a mere |
| believed that this "portfolio stuff" is | | | | decision. Just think. The ultimate |
| highly overrated. Smart clients want to see | | | | Nickel-And-Dimers are governments. Have you |
| value not portfolios. Well, she accepted the | | | | ever checked their retarded processes of |
| deal. And then two more.Then she found out | | | | hiring consultants? A few years ago a |
| that Fred was just a broker between her and | | | | colleague, to the demand of her local |
| some real buyers. Fred knew that the lower | | | | government in order to win the contract, |
| price he could demand from Katie, the more | | | | dropped all her clients. She started working |
| money he would pocket. I have nothing against | | | | on the government contract and then two |
| brokers per se. I too broker projects here | | | | months later the committee pulled the plug on |
| and there. Over the years, thanks to my | | | | the project. We know that the most amount of |
| military training, skydiving and other | | | | work goes into projects right at the |
| experiences, I've become a damn good project | | | | beginning. Nevertheless, after putting in all |
| manager and I have an innate talent to have | | | | the initial work, all she got paid was a pro |
| people work together as a - real - team | | | | rated hourly fee.But at least that was paid |
| towards a common objective, so I co-ordinate | | | | for. But she was expected to climb the |
| large high-stake projects with functional | | | | proverbial mountain of broken glass and rusty |
| experts. But I do have a problem that the | | | | nails barefoot and butt-naked just to win the |
| greedy bastard Fred increased his money by | | | | contract. And she even relinquished all her |
| lying to a good designer about future | | | | clients for this "big gig". And the big gig |
| projects.And rest assured that Fred will brag | | | | bombed miserably. Then it took her a good six |
| to his friends, that "If you need a | | | | months of living on her savings to get some |
| super-cheap web designer, let me know. My | | | | clients back.So, be very careful about what |
| contact is super-cheap and super-good." Yes, | | | | sort of commitments you make upfront. Make |
| she is super-cheap because she was | | | | sure that every commitment is a mutual |
| manipulated by this scumbag, and she is | | | | commitment. For instance, if the prospect |
| super-good because doing excellent work is | | | | requests a proposal from you to think more |
| part of her DNA. By genetic design she | | | | about it, then ask for a small payment, which |
| doesn't rest until she produces "WOW!" | | | | later you can lump into the project. The |
| calibre work. And these are the people slime | | | | payment shows the prospect is serious.8. |
| balls like Fred are seeking for "contract | | | | Nickel-And-Dimers Demand Extensive Proposals |
| work".Then she participated in my Fee Audit | | | | Just To Steal Your Intellectual Property For |
| and Protection Plan programme and learnt that | | | | In-House Implementation Nickel-And-Dimers |
| clients don't pay for portfolios but for | | | | tend to call it the bidding process but |
| value. With this realisation Fred was | | | | realistically it's nothing more than |
| immediately out of the picture.4. | | | | euphemism for the theft of your intellectual |
| Nickel-And-Dimers Do Most Of The Complaining | | | | property. These people demand detailed |
| About You And Your Services Nickel-And-Dimers | | | | information on everything and then with your |
| are extremely good at complaining. They keep | | | | information they often go to the lowest |
| nudging you that they could get the same | | | | bidder for implementation.Just think about |
| service next door a lot cheaper. Well, if | | | | the typical request for Proposal (RFP). It |
| they could, they wouldn't be arguing with | | | | gives you a detailed guideline on how to |
| you. They would go and get that cheaper | | | | write that proposal. So, the RFP creates a |
| service. But that cheaper service won't be | | | | level playing field where are unique value is |
| the same.There are some common factors in | | | | cut out of services and bidders are |
| projects. Two of them are are... | | | | completing purely on price. And RFPs usually |
| | | | specify very expensive and detailed |
| | | | proposals. A proposal I've seen lately |
| | | | started with a 21-page executive summary. The |
| Certainty of successful completion | | | | whole proposal was 410 pages. The appendix |
| | | | section was a separate document some 700 |
| Velocity of progress | | | | pages long. Can you imagine how many hours it |
| | | | takes to create such a monster? And who's |
| And your fee is a reflection of these two | | | | going to read it all. Maybe a civil servant |
| elements. The funny thing is that | | | | who has nothing else to do anyway.9. |
| Nickel-And-Dimers want to maximise both | | | | Nickel-And-Dimers Never Become Repeat Clients |
| factors while minimising your fees.If I want | | | | And Never Refer You Anyone This is just a |
| to travel from New York to Los Angeles, I can | | | | foregone conclusion from the previous points. |
| take different options. The option with the | | | | They create a pretty relationship dynamic and |
| lowest investment can be a pair of running | | | | blame you for everything. So, it's just |
| shoes. That will give me a certain velocity | | | | normal that they spread only bad words about |
| of progress and certainty of arrival. But if | | | | you and your services. What else can they do? |
| I invest in a plane ticket, I increase both | | | | What they don't realise is that they are the |
| the velocity of progress and certainty of | | | | only rotten apple in a whole barrel of good |
| arrival. I, the buyer, can choose which | | | | apples (great clients). And as we all know |
| option to take and I get what I paid for.And | | | | even one bad apple can spoil the whole |
| of course this complaining can go as far as | | | | barrel.Summary So, what is the lesson here? |
| the courtroom. When these people make up | | | | Sometimes it's worth negotiating, reasoning |
| their minds to get full refund on a project | | | | and explaining things to people but reasoning |
| that failed (over 90% of failed consulting | | | | with Nickel-And-Dimers is the same as |
| projects fail because of clients' diminishing | | | | wrestling with a pig. You get dirty and the |
| commitment - Dr. Edgar Schein, Process | | | | pig won't enjoy it either.It's the same as |
| Consultation), they stop at nothing to blame | | | | trying to negotiate with Hitler about world |
| their consultants and are willing to go to | | | | domination. No. Instead of arguing and |
| any length to recover their | | | | reasoning, the Allies shoved a bomb up his |
| investments.Studies done by McKinsey & Co | | | | butt and blew him and his empire to hell. Now |
| also indicate that... | | | | I don't suggest that you do that to your |
| | | | Nickel-And-Dimers, but you're free to walk |
| | | | away, saving your sanity and start with a |
| | | | clean slate and live another day.And what is |
| 75% of solutions don't return a profit to | | | | the other option? You can try to please |
| the buying company | | | | Nickel-And-Dimers and they'll consume your |
| | | | life. They are the people who just take, take |
| 50% of solutions don't deliver the expected | | | | and take some more. And you may try to be the |
| value | | | | good-hearted Samaritan, but eventually you |
| | | | get run to the ground and resentment starts |
| Now referring back to Dr. Schein's research, | | | | kicking in. As the former UN General |
| we can see that more often than not it is | | | | Secretary, Dag Hammarskjold once said, "It is |
| clients who disallow consultants to deliver | | | | more noble to give yourself to one individual |
| the value that was laid out in the | | | | than labour diligently for the salvation of |
| agreements. | | | | the masses." Being a Nickel-And-Dimer is a |
| | | | serious disease, and most of us are not |
| Nickel-And-Dimers complain because to them | | | | qualified (hopefully not interested either) |
| this is negotiation and they feel this is the | | | | to cure these hopelessly lost souls. The best |
| only way to get a fair deal. They learnt in | | | | we can do is just to avoid them with amazing |
| some Arab bazaar that haggling is part of | | | | accuracy and move on with our own |
| life and without haggling they would be taken | | | | lives.Organisational Provocateur Tom "Bald |
| for a ride. So, they apply what they've | | | | Dog" Varjan of Dynamic Innovations Squad |
| learnt: "C'mon man, you can do better than | | | | helps providers of professional services to |
| that" or "Is this your best price". The funny | | | | achieve the income and lifestyle levels they |
| thing is that when you start taking value | | | | desire through high-trust high-impact client |
| elements out of your agreement, they scream | | | | relationships. |