Building Client Relationships

Introduction to Consulting Building Client Relationships

2 comments

The importance of gaining a client’s trust via a solid reputation in the market places a premium on leaders who are skillful in building client relationships. No one would expect a consulting firm with poor reputation to thrive. After all, any firm’s future is only as bright as its reputation in the market.

It takes a strategic eye to focus on building client relationships for the long-term, even if it means sacrificing some revenue, and individual compensation, in the short-term. In this podcast we talk about how we approach building client relationships. More specifically, we discuss how we handle negotiating fees with clients. We dive into:

  • Should you consider competing on price?
  • What competing on price does to your firm?
  • If you compete on price what signal are you sending to the client?

Competing on price may bring in some extra revenue in the short-term, but will be damaging to the health of your business in the medium and long-term. Hence, competing on price actually destroys value and should be avoided.

However, if you are a small boutique consulting firm and you choose not to compete on price, how should you compete? In this podcast we also share with you an alternative to competing on price that works for us.

building client relationships

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Comments

2 responses to Building Client Relationships

  1. Thanks Corwin.

  2. Hi Michael,

    Another great podcast. Two things stood out; the first being when telling a client you can’t lower your price but being graceful about it. I’ve seen firms stick to their guns on price but lose future opportunities due to their delivery of the message. The second piece is the fact that once you lower your price with a client; it almost never goes back up. Once the precedent is set, that’s what they will expect. In my previous venture we took a similar approach on our pricing. It was a long term play but paid off in us landing clients that no sales/marketing tactics could have ever done. Sticking to our values and value proposition won out in the end and created a large moat that competitors couldn’t cross.

    Corwin

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