X marks the spot: How to translate value as a consultant

There is an old analogy for pricing in the consulting world; a client get's an invoice:

Putting an X on the Machine:         $1

Knowing where to put the X:  $9,999

If you really understand that analogy, you already understand that your inherent value/knowledge/experience, not your time, is extolled.

If you do not bring intellectual capital, process or property to the table, you're a freelance employee, at best, a cheap facilitator.

What really separates the successful consultant is hearing the client "wants" and mining the true "need".  

Ex:  Client:  "We want a website"  

"What' your goal in a new website creation?"

"We need to increase sales/demand/beat XYZ competitor."

"So, what you really need is to increase conversion, not create another project.  What percentage of your past buyers/travelers/customers would need to buy again to fill that gap?  It may be that a good corporate loyalty plan could more efficiently fulfill this need, and you can pay attention to other parts of the business.  Let's delve into this project and focus on the need.  It may very well be that your customer base might need attention, and that's a lot more cost effective that attracting a new buyer."

Great consultants know how to separate client want from need.  There is but one goal of a consultant:  "To improve your client's position".  

How do you really know if you are doing that if you are just an order taker?

RFPs are an archaic model of price competition; it's an arbitrary alternative seeking deliverables that have not been properly investigated.  Under no circumstance do I answer RFPs.  The business won is usually not a good fit for an independent thinker.  

Back to your value:  Make sure that a client understands the array of experience and skills, no matter how broad.  I loathe the term, "jack of all trades, master of none."  You aren't tending cows or shoeing a horse, a consultant should be well rounded in all manner of business, as well as have niche specialty areas for speed of success.

Be prepared to illustrate your value in all proposals, avoid task listing.  Unbundle, give multiple choices for yes.  

And repeat this in the mirror, "A proposal is not a plan.  A proposal is NOT a plan.  A proposal is not a plan"

You're getting paid for that plan, right?  For knowing where to put that X; if you give that away in an effort to close the deal, you've relegated your talent to $0 worth and back to a cheap hourly employee.

Understand your consulting practice in business process terms, not tactics.  "Improve sales by 20%."  "Markedly change social perception."  "Decrease buying cycle time."

Now, go - make a fearless inventory of your values; your case history of performance, what unique mix of successes that only YOU have.  And, adopt a new mantra:  "Jack of all trades, master of WON!"  That plethora of experience lets you, and uniquely YOU, know exactly where that "X" goes.

Good luck, sweet friend - go get 'em!

Jenn