How To Raise Your Fees 276% was written by guest blogger Enoch Sears. Enoch is the founder and publisher of the Business of Architecture show and principal architect at Enoch Sears Architect.
A man was having a hard time choosing an architect to renovate his home. Time was running out, and he needed to make a choice to get his project completed in the time frame he desired. His last meeting of the day was with an architect whose prices were higher than the other firms. Although the man had the money, he wasn’t sure why he should pay a higher price when other firms were willing to take on the project for a lower cost. When he arrived at the meeting, he cut straight to the point: “I’ve noticed your fees are higher than anyone else’s. Why would I pick you over these other firms who can do the same work at a lower cost?”
The architect nodded knowingly and said, “Let me ask you a question, how much is your home worth now?”
The man shrugged, not sure why the question was relevant. “Well, about $500,000.”
The architect smiled, “When the renovations are finished, your home will be worth $2 million, which means, you’ll make $1.5 million. Would you like to make $1.5 million?”
“Of course!” The man replied, surprised because he had not considered the final market value.
The architect reached out to shake his hand, “Great, let’s get started.”
What if I told you, as an architect, you could make your clients 1.5 Million? Would that change the way you talk about your architectural services to prospective customers? How about clients? How many more projects would you gain? You would sit comfortable knowing that your architecture fees aren’t too low.
The key to landing more projects and getting the best fees is to sell the value of what you provide.
So what’s the difference between selling time vs. selling value?
When you sell time, you are limited to a fee based on the amount of work you do. On the other hand, when you sell value you highlight the benefits a customer gains by working with you. Yes, your services have a cost, but clients are also investing in an outcome and a process. Instead of focusing on the cost of services, ask yourself, what are the benefits that encourage a potential customer to choose your services over the competition?
What are your clients looking for?
To understand value based selling, you need to put yourself in your customer’s shoes. If other concerns are addressed, would cost be a barrier to moving forward? Besides a finished project, what other expectations do customers have? Think about some of the worries and concerns they might have about the process you can address. Talk about the overall value the finished project brings, even addressing the benefits to your client’s lifestyle. We all want more time, less stress and speedy delivery. Can you deliver these things to your clients?
Why does selling value work?
If a client looks for an architect who can simply complete a project, he or she will likely find the lowest price point. After all, why shell out significant funds for a project any architect can complete? But what if an architect could complete the project on time and provide improvements the client hasn’t even considered? What if an architect takes the client’s ideas into consideration and plans time to provide status updates and explain complex requirements? At the end the project is finished on time, on budget and although the customer may have paid a higher fee, they walked away with $1.5 million because they bought into the value, not simply the price.
A good architect can get a the project done. A great architect will add value by addressing the client’s worries, protecting their investment, and saving them time and energy. As an expert architect, you know the secrets to a successful project and can pass that value to your clients. Raise your fees. Sell value.