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
About the author:
Kris Mills of Words that Sell is a seasoned copywriting and
direct marketing professional and author of a number of
marketing programs. Kris has published dozens of articles on
copywriting, direct marketing and internet marketing. To read
these articles or to subscribe to her ezine visit
http://www.advicegalore.com or to discover more case studies,
visit http://www.wordsthatsell.com.au
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