You're Missing the Value Proposition

Do you ever get the feeling that sometimes people miss the value proposition you are setting forth? Like, it’s the biggest part of your business… the biggest attribute to your clients but because it’s so obvious, it gets overlooked? That’s what is inspiring this blog post.

Now, I know it’s YOUR job, as entrepreneur / business owner / CEO / leader, to set forth your value proposition and describe the benefit statements to your clients, colleagues, etc. but do you ever find yourself still trying to show the REAL value?

Our virtual assistance services / creative, professional outsourcing services are priced in the mid-pricing scale of virtual assistance companies. We offer excellent services for the online business owner and we have a team of people that my clients can plug into and rely on to get their work done. We offer more diverse skill sets and services than a lot of solopreneur companies will. All of these are great benefit statements and selling points.

But here’s the thing most people miss… I built my clients a team.

If you are working with a multi-VA firm, that firm’s owner built YOU a team. You didn’t have to. The hiring, the process of making sure the talent was good enough, shortening the know/like/trust factor was all done for you. Hours spent unbillable doing interviews, creating sub-contractor agreements, e-mail addresses, Basecamp accounts, etc. was completed when you got here.

Now, I’m not moaning about the time spent building a multi-VA team and I certainly know it was my choice in creating a large company but I realized the other day that when people say, “You’re a little more expensive than other virtual assistants” I should respond, “I know! We should be!” THAT is our value.

Our benefit statement is that I’ve created YOU a company with web designers, blog designers, graphic designers, internet marketing support people, administrative support staff, PHP programmers, social media assistants… the list continues so that you don’t have to scour the web looking. You don’t have to waste your time.

So, all this to say that if you are working with a multi-VA team and you are complaining about rates (or even gently trying to get even further discounted rates) remember that the time spent building this team was all done so you wouldn’t have to do it.

Do you have a benefit statement that is so obvious it gets missed? If so, share it!

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http://twitter.com/DarrenSproat Darren Sproat

Erin,You are absolutely correct about “I know! We should be!” as the answer to “you're a little more expensive” questions. I have built and manage the outsourcing of professional services and, yes, the value statement is very similar to yours. I am more expensive then some similar, competive offerings, but I refuse to devalue my service offering by giving in to pressures from lower priced “cheaper” solutions from those competitors.A tool I use often is the testimonial from existing clients… it seems potential clients 'understand' the language from an existing client tesitmonial. Enjoyed the read, thank you!Darren Sproat
http://twitter.com/DarrenSproat Darren Sproat

Erin,
You are absolutely correct about “I know! We should be!” as the answer to “you're a little more expensive” questions. I have built and manage the outsourcing of professional services and, yes, the value statement is very similar to yours. I am more expensive then some similar, competive offerings, but I refuse to devalue my service offering by giving in to pressures from lower priced “cheaper” solutions from those competitors.

A tool I use often is the testimonial from existing clients… it seems potential clients 'understand' the language from an existing client tesitmonial. Enjoyed the read, thank you!

Darren Sproat
japmanbajaj

Awesome post Erin! I agree with you: I dream of a world where the haggling ends, and the bargaining and borderline personal attacks disappear. In reality, I question if humanity is selfless enough to ever reach that point.But it's also a negotiation tactic and act of business responsibility. Ultimately, if the client doesn't understand the inherent value that comes from your team, then he/she will (And should!) negotiate for a lower fee.Because if you think about it, if the sale doesn't go through, then the clash is either from inappropriate messaging (on your end), a bad mesh of personalities (noone's fault), an unreasonable client that's trying to gouge (the client side), OR some other firm simply willing to go lower in price or provide/explain more value one (third party, entirely beyond your control— unless you've got the mafia on your side! haha i joke )Maybe it's just my life philosophy (which is fundamentally “check yourself before you wreck yourself”, so to speak), but if a client isn't seeing the value, I look at my own messaging first. If I reach the point that I know i've tried my best to land the client and it's still not happening, then there's really nothing else I can do.Thoughts?
japmanbajaj

Awesome post Erin!

I agree with you: I dream of a world where the haggling ends, and the bargaining and borderline personal attacks disappear. In reality, I question if humanity is selfless enough to ever reach that point.

But it's also a negotiation tactic and act of business responsibility. Ultimately, if the client doesn't understand the inherent value that comes from your team, then he/she will (And should!) negotiate for a lower fee.

Because if you think about it, if the sale doesn't go through, then the clash is either from inappropriate messaging (on your end), a bad mesh of personalities (noone's fault), an unreasonable client that's trying to gouge (the client side), OR some other firm simply willing to go lower in price or provide/explain more value one (third party, entirely beyond your control— unless you've got the mafia on your side! haha i joke )

Maybe it's just my life philosophy (which is fundamentally “check yourself before you wreck yourself”, so to speak), but if a client isn't seeing the value, I look at my own messaging first. If I reach the point that I know i've tried my best to land the client and it's still not happening, then there's really nothing else I can do.

Thoughts?
http://twitter.com/marketingfails Paul L'Acosta

Erin, wow, I wonder where this post came from: own experience? I know how it feels so I guess you're dealing with a client that just doesn't get what you go through, scouring the vast universe and strolling through the Rolodex (okay, figure of speech since I don't use one but you get my point) to find resources that match your needs. But of course, once you deliver, that's when in reality you should be rated by the person who hired you. Not before, not even during the whole creative process. Hopefully you trust the team you built enough that what's going to be delivered will rock the client's world. And in return you will be paid back with the client's trust for future projects.Found you through Twitter and I'm staying! Great post. I also liked the fact that I can see Tungle in action here; been playing with it and haven't set it up since their demos are kind of incomplete. You're a busy bee this week! Good luck!–Paul
http://twitter.com/marketingfails Paul L'Acosta

Erin, wow, I wonder where this post came from: own experience? I know how it feels so I guess you're dealing with a client that just doesn't get what you go through, scouring the vast universe and strolling through the Rolodex (okay, figure of speech since I don't use one but you get my point) to find resources that match your needs. But of course, once you deliver, that's when in reality you should be rated by the person who hired you. Not before, not even during the whole creative process. Hopefully you trust the team you built enough that what's going to be delivered will rock the client's world. And in return you will be paid back with the client's trust for future projects.

Found you through Twitter and I'm staying! Great post. I also liked the fact that I can see Tungle in action here; been playing with it and haven't set it up since their demos are kind of incomplete. You're a busy bee this week! Good luck!

–Paul
http://www.bsetc.com/ Erin Blaskie

Hi Darren!Great idea on the testimonials! We use this PDF to help our prospective clients see what we do:http://bit.ly/Uc19EI totally agree with you on sticking to your guns. I think you have to stay priced at the rate you deserve and ignore the competition coming from the far cheaper sources… let's face it, they probably won't be competition for long in every case E.
http://www.bsetc.com Erin Blaskie

Hi Darren!

Great idea on the testimonials! We use this PDF to help our prospective clients see what we do:
http://bit.ly/Uc19E

I totally agree with you on sticking to your guns. I think you have to stay priced at the rate you deserve and ignore the competition coming from the far cheaper sources… let's face it, they probably won't be competition for long in every case

E.
http://www.bsetc.com/ Erin Blaskie

Hey Japman! Amazing comment… Great insights and feedback.I totally agree with you. I do realize that I have to get clearer on describing our own benefit statement to prospective clients. I think my blog post was both me waking up to the fact that, “Hey… I've built something pretty awesome here…” and being frustrated by those people who don't see the larger picture at hand. However, I can't concentrate my efforts on those who don't get it. They might some day Do you think people negotiate fees in a service-based business often?E.
http://www.bsetc.com Erin Blaskie

Hey Japman!

Amazing comment… Great insights and feedback.

I totally agree with you. I do realize that I have to get clearer on describing our own benefit statement to prospective clients. I think my blog post was both me waking up to the fact that, “Hey… I've built something pretty awesome here…” and being frustrated by those people who don't see the larger picture at hand. However, I can't concentrate my efforts on those who don't get it. They might some day

Do you think people negotiate fees in a service-based business often?

E.
http://www.bsetc.com/ Erin Blaskie

Hi Paul!Thanks for popping in and I'm glad to know you're staying Anyone who takes the time to engage in a conversation like this one is an A+ in my books. I love your perspective on the client process and focusing on the value and follow through. We continue to showcase our finished projects in order to create that USP but I find it more difficult to do when the client themselves doesn't do their due diligence. What I mean is when you get those people on the phone who haven't even been to your website (you know what I'm talking about I'm sure!) Those people, the tire kickers or the time wasters, are a bit harder to show the value to when they aren't really invested in the process themselves.I heart Tungle!! Best calendaring system out there in my opinion It has an iPhone app… Anything with an iPhone app equals insta-love for Erin. E.
http://www.bsetc.com Erin Blaskie

Hi Paul!

Thanks for popping in and I'm glad to know you're staying Anyone who takes the time to engage in a conversation like this one is an A+ in my books.

I love your perspective on the client process and focusing on the value and follow through. We continue to showcase our finished projects in order to create that USP but I find it more difficult to do when the client themselves doesn't do their due diligence. What I mean is when you get those people on the phone who haven't even been to your website (you know what I'm talking about I'm sure!) Those people, the tire kickers or the time wasters, are a bit harder to show the value to when they aren't really invested in the process themselves.

I heart Tungle!! Best calendaring system out there in my opinion It has an iPhone app… Anything with an iPhone app equals insta-love for Erin.

E.
japmanbajaj

Right! By no means do i mean to say you should sell yourself short. You take pride in what you built. And you probably do have a million different ways to talk about how much you believ ein what you're doing.And you mentioned the flip…. Those who DO NOT get it *can* be ignored if you've got enough coming in from those who DO. Because those who DO are likely to have a good experience, and then you get the whole testimonial and referral income, and hopefully, some of those original DO NOT's are part of that, and you can secretly laugh at them for missing out in the first place I honestly think the negotiation HAS to happen. Especially when we're talking small business. I think there's a new breed of entrepreneur that will make the one-fair-price mentality more widespread(woo Generation Y), but I'm coming from the brain of a kid whose parents lost 90+% of their life savings in a small business; You have to get the lowest price for the highest return. Especially at the smallest levels of small business, to not even attempt the negotiation is kinda saying “i will put more control of my business in the other person's hands than in my own”. The small businessman owes it to his own efforts and ideas to negotiate.
japmanbajaj

Right! By no means do i mean to say you should sell yourself short. You take pride in what you built. And you probably do have a million different ways to talk about how much you believ ein what you're doing.

And you mentioned the flip…. Those who DO NOT get it *can* be ignored if you've got enough coming in from those who DO. Because those who DO are likely to have a good experience, and then you get the whole testimonial and referral income, and hopefully, some of those original DO NOT's are part of that, and you can secretly laugh at them for missing out in the first place

I honestly think the negotiation HAS to happen. Especially when we're talking small business. I think there's a new breed of entrepreneur that will make the one-fair-price mentality more widespread(woo Generation Y), but I'm coming from the brain of a kid whose parents lost 90+% of their life savings in a small business; You have to get the lowest price for the highest return. Especially at the smallest levels of small business, to not even attempt the negotiation is kinda saying “i will put more control of my business in the other person's hands than in my own”. The small businessman owes it to his own efforts and ideas to negotiate.
danielleguerin

Erin, Thank you for posting this. I agree with your benefit statement. Another benefit that gets missed is the training time, we or our team members have taken in order to serve our clients. Our clients don't pay for our training. Each year, my team and I invest in training programs, attend online and live seminars, purchase new tools (software), read countless tech, marketing and social media blogs, spend hours on Social Media in order to better help my clients. We do it for ourselves, I admit, but this also saves our clients many hours of research. They know where to ask when they're looking for a resource or when they need something done. Most of the time, it's something we can make happen. If not, I have a great “virtual rolodex” filled with resources. I like to remind my colleagues and myself that there are clients out there who do recognize the value of our services and focusing on taking great care of them and their business makes us even more “attractive”.
danielleguerin

Erin,

Thank you for posting this. I agree with your benefit statement. Another benefit that gets missed is the training time, we or our team members have taken in order to serve our clients.

Our clients don't pay for our training. Each year, my team and I invest in training programs, attend online and live seminars, purchase new tools (software), read countless tech, marketing and social media blogs, spend hours on Social Media in order to better help my clients. We do it for ourselves, I admit, but this also saves our clients many hours of research. They know where to ask when they're looking for a resource or when they need something done. Most of the time, it's something we can make happen. If not, I have a great “virtual rolodex” filled with resources.

I like to remind my colleagues and myself that there are clients out there who do recognize the value of our services and focusing on taking great care of them and their business makes us even more “attractive”.
http://twitter.com/ideas2revenue Ideas2Revenue

Erin,This is a great post and you have touched on a topic that not only have we struggled with in the past, but many of our customers do as well.So, here are a couple of things that we have learned and apply.1. There is a big difference between need and want. Taking the pricing discussion away for a second, it is important to realize that entrepreneurs and people like you who have “lived it” often know what they need as you have seen it in other customers. However, they are in the thick of it and do not have the same type of view of the situation. Having said this….sometimes you need to sell them what they want….but as part of the engagement show them what they truly need.2. As you know our business is all about the customer and their perspective to the business. So, what I would suggest is go out to the customers who you have already worked with and ask the questions to get the value proposition from their perspective. I know you have already done this as you are one of the great businesses that actually listen….but if your customers are saying that they do not really think of you as it relates to having a fully built team…then find out why they did buy….and make that repeatable. At the end of the day it is the customers definition of value that matters, and even though we may see the need and value in something…ultimately they pay our bills so they are the only ones that matter. Now, if your current customers reiterate the value proposition you have as the right one…then simply ask them how to best present this so that other customers “get it”.Hope this makes sense, but the bottom line is that your current customers hold the answer.ThanksRandy
http://twitter.com/ideas2revenue Ideas2Revenue

Erin,
This is a great post and you have touched on a topic that not only have we struggled with in the past, but many of our customers do as well.

So, here are a couple of things that we have learned and apply.

1. There is a big difference between need and want. Taking the pricing discussion away for a second, it is important to realize that entrepreneurs and people like you who have “lived it” often know what they need as you have seen it in other customers. However, they are in the thick of it and do not have the same type of view of the situation. Having said this….sometimes you need to sell them what they want….but as part of the engagement show them what they truly need.

2. As you know our business is all about the customer and their perspective to the business. So, what I would suggest is go out to the customers who you have already worked with and ask the questions to get the value proposition from their perspective. I know you have already done this as you are one of the great businesses that actually listen….but if your customers are saying that they do not really think of you as it relates to having a fully built team…then find out why they did buy….and make that repeatable. At the end of the day it is the customers definition of value that matters, and even though we may see the need and value in something…ultimately they pay our bills so they are the only ones that matter. Now, if your current customers reiterate the value proposition you have as the right one…then simply ask them how to best present this so that other customers “get it”.

Hope this makes sense, but the bottom line is that your current customers hold the answer.
Thanks
Randy

You're Missing the Value Proposition

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