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