I’ve regularly written about the importance risk-reversal plays in dissolving buyer scepticism. As a way of allaying buyer fears, some of my clients have adopted money back guarantees and their sales have increased dramatically just as a result of implementing that guarantee.
One area where buyer scepticism is particularly rampant is when it comes to enlisting consultants. A company knows they need to enlist the services of a consultant to increase their bottom line, yet in most cases, they’ve been burnt before, paying too much money to consultants that don’t come up with the goods.
And, when I speak with consultants many tell me that their services are so much better than their competitors, yet when asked if they are willing to offer a guarantee, 99% say “NO”.
The reason for the “NO” answer? I often get told, “Advice is only as good as the implementation” and unless they can control implementation, they can’t guarantee an outcome.
As a consultant myself, I see their point. It’s very, very true, however I’d like to tell you a story about a global, franchised consulting group that has been offering a bold “no win, no fee” guarantee for years, with great success too, I might add. As a result, they have no problems getting their feet in the doors of even the biggest multi-national firms.
The company is Expense Reduction Analysts and they offer a cost reduction service whereby they reduce a company’s business operating costs in areas like printing, stationery, freight, telecommunications, travel and so on. Instead of charging a fee for this service, they charge 50% of the savings realised in the first year. If no savings are found, no fee is paid.
In reality, every company they work with does achieve savings with most shaving 23% or more off their costs. With the size of the companies ERA works with, this represents a saving of anywhere between $100,000 to $1,000,000. One multinational client has just saved $2million thanks to ERA’s efforts. (Incidentally, the ERA consultants involved with the project pocket a healthy proportion of those savings as their fee.).
If ERA consultants were to charge a set fee for their services, their income per client would be a fraction of what it is now. What’s more, without a guarantee in place, their sales conversions would be significantly lower too.
With the “no win no fee” guarantee, everyone wins. The client wins because there is absolutely no risk in dealing with ERA. Additionally, any fees they pay ERA come out of savings realised so it is money they wouldn’t have previously had anyway.
And, the ERA consultant wins too. Their consulting fees are many, many times what a “fee for time” consultant would charge.
As you can see, if you’re a consultant or part of a consulting firm, it pays to see how you can re-structure your services so you can offer a FEE for results arrangement.
To find out more about ERA’s “no win, no fee” offer, you can visit their website at http://www.expense-reduction.com.au
While I’m talking about consultants, ERA is currently looking for experienced business consultants (in Australia) to become self-employed Expense Reduction Analysts, as part of their franchised operation.If you’re thinking of a career change, and you’d like to explore the Expense Reduction Analysts franchise opportunity, just visit their international website at www.expense-reduction.net
Kris Mills of Words that Sell ( http://www.wordsthatsell.com.au/ ) is a top selling copywriter, trainer and author of numerous how-to guides including Proposals and Tenders (Bids) that Sell. Kris has also produced a FREE ebook entitled “11 Bid Writing Sins and How to Avoid Them”. To arrange a FREE copy, visit:http://www.wordsthatsell.com.au/tendersebook.htm
