In consulting, especially in sales and marketing, there is an important difference between effort and value creation. This distinction influences the pricing and delivery of services. Understanding this balance is critical for both service providers and customers as it forms the basis for fair compensation and a sustainable business.
Effort vs. Value: A Fundamental Distinction
Effort refers to the amount of work put into a task — the hours spent, the energy used and the resources used. Value, on the other hand, is the benefit or impact that this effort creates for the customer. A marathon runner may put in tremendous effort to finish a race, but the value of his achievement is measured by his finish time and position, not just the sweat and fatigue he endured. Likewise, in consulting, the effort is the work done, but the value is the measurable improvement in the client’s business results.
The customer’s perspective: “If it was free, I would definitely do it”
Many customers have a common concern: the fear of spending money and not receiving adequate value in return. This fear often manifests itself in the thought, “If it were free, I would definitely do it.” This feeling highlights the importance of demonstrating clear, tangible value to justify the investment.
Our approach at Reach Revenue
At Reach Revenue, we understand this challenge. Our approach focuses on ensuring compensation reflects the value delivered, not just effort. This allows our customers to achieve a return on investment and align our efforts with their business goals. Our mission is to help UK-based SMEs with a B2B focus increase their sales. We achieve this by improving their online presence, generating high-quality sales leads and providing marketing automation and telemarketing services.
Value-based pricing
Our pricing strategy is based on a few basic principles:
Results-based fees: Our fees are based on overall improvement in business performance, including improvements in online visibility, lead quality and sales pipeline strength.
Transparent pricing: We ensure customers know exactly what they are paying for and what results they can expect to build trust and avoid surprises.
Services at a fixed price: We offer services at fixed prices for all engagements. This approach is advantageous because most of the costs are incurred upfront. To make it manageable, we spread these costs over 6 to 12 months, allowing clients to manage their budgets effectively. All contracts can be terminated at any time with 30 days’ notice.
Performance incentives: In some cases, part of our fees are tied to the achievement of certain goals. This allows us to align our interests with those of our customers.
Navigating Fair Compensation
Despite our commitment to value-based pricing, balancing fair compensation is an ongoing challenge. We must ensure our business remains sustainable and our team is fairly compensated, while providing measurable value to our customers. To address this issue, we focus on:
Continuous improvement: We regularly refine our processes and services to increase customer benefit.
Collaboration with the customer: We work closely with customers to understand their needs and tailor our services accordingly.
Regular evaluation: We evaluate our results and collect feedback from our customers to make necessary adjustments.
Alleviate customer concerns
To address concerns about spending money without receiving value in return, we have several customer-focused practices:
Strategic review model: Each assignment begins with a strategic review based on the client’s specific request. This review determines the current status of the company, identifies starting points and documents what needs to be done. The result is a comprehensive activity plan that serves as a roadmap.
Monthly Activity Plan Review: We review the activity plan monthly, creating a strong feedback loop. This keeps us aligned with the customer’s goals and allows for adjustments based on feedback.
Initial consultations: We offer initial consultations to discuss client needs and outline potential strategies. This is how we help customers understand the potential value before they commit.
Pilot projects: For those who are skeptical about long-term commitment, we offer pilot projects. These smaller initiatives provide a taste of our capabilities.
Clear reporting: We provide detailed reports and regular updates to show the progress and results of our efforts to ensure transparency.
Typical offer structure at Reach Revenue
We take a structured approach to offering our services to ensure clarity and alignment with our clients’ objectives. Here is a typical structure we use:
Understanding the letter: We start by clearly expressing our understanding of the client’s needs and goals.
Strategic review: We propose an initial strategic review to determine the current state of the business, identify a mutually acceptable starting point, and document what needs to be done and what the success criteria are.
Performance phases: We outline the phases of our engagement, typically starting with the creation of a robust lead generation function and then establishing a new sales function.
Detailed plan: We provide a detailed plan that covers areas such as alignment with corporate strategy, value proposition, addressable market, competitive landscape and go-to-market strategy.
People and processes: We discuss roles and organizational structure, hiring and onboarding, training and development, and other people-related aspects. We also cover lead generation, sales methodology, CRM and technology, and other process-related areas.
Key performance indicators: We outline the metrics and KPIs we use to measure success and ensure continuous improvement.
Prices and conditions: We present a transparent pricing model and terms to ensure customers understand the costs and expected results.
Diploma
At Reach Revenue, our goal is to help customers increase their revenue and achieve their business goals, while ensuring that the pricing for our services is fair and transparent. By focusing on continuous improvement, collaboration and regular evaluation, we aim to strike a balance between effort and value. The aim of this blog post is to clarify our pricing model and the philosophy behind it. We hope it provides useful insight into how we balance fair compensation with our commitment to value creation. If you have any questions or would like to find out more about our services, please contact us.
Let us know the pricing model that works best for you. Let’s see if we can implement it. Contact us to discuss how we can tailor our services and pricing to your individual needs and help you achieve your business goals.
At Reach Revenue, we work with business owners, executives and investors to develop high-performing sales and marketing teams aligned with their company’s strategic goals. To find out how we can help you, call 0203 858 8030 or email [email protected].
