In difficult trading times when businesses need to reduce costs and improve efficiencies investing in external support is not often their first thought, however this is often the time that bringing in an experienced partner can pay for itself. In times of crisis you end up being “in” your business rather than working “on” it, so having the benefit of some fresh thinking and an objective view can help identify opportunities you may not have otherwise considered.
I have been heartened recently by the way hospitality businesses had come together during this crisis, sharing learning, and supporting one another and demonstrating a level of collaboration like never before. The crisis has been a catalyst for great innovation and creativity within businesses as they are forced to rethink their models to adapt to the new world they find themselves in.
Value for Money
The question of price and value for money is often a hot topic for conversation and how you ensure customers receive good value for money, when it is not all about the price but the perceived value of the overall experience. How you apply the principle of good value to the world of consultancy and place value on the advice and expertise they can bring is often difficult for businesses to quantify.
I was recently part of a discussion led by Dr Brigitte Stangi from the university of Surrey on Innovative Pricing in hospitality, she shared her insights on the advantages and challenges of adopting a more disruptive approach to pricing such as Pay-what-you-want or Name-Your-Own-Price, less common strategies that challenge the status quo. In her findings based on restaurants and museum entry the level of success in how these were applied varied based on the knowledge, experience and understanding by the consumer of the cost structure and recommended price. Those customers with a better knowledge and understanding paid much closer to the desired price.
Setting up a consultancy business during a pandemic is not without its challenges as its often hard for businesses to know when getting some external advice and help may be worthwhile. As I am working to build my client base, I can see an opportunity in adopting a participative pricing strategy to attract customers to use the services I offer as a hospitality and food consultant. So what could the key benefits to this type of approach be,
Boost Consultancy
explores below:
Consumption Triggers vs Purchasing Triggers
In the current climate it is much more difficult to engage businesses with the idea of purchasing services when they are in a cost reduction mindset. The move away from the traditional method of clients making a commitment to a predefined price to one where the focus is on consumption could be much more attractive for many. The focus away from payment triggers to consumption triggers such as satisfaction and positive impact of the work carried out will also allow businesses to experience and see the benefit before paying and require the consultant to be confident in their ability to deliver a great service for their client.
Quality Work
The willingness to engage with businesses and have trust that the quality of the work you deliver for them will speak for itself and be worthy of payment will give confidence if your ability. I believe that by delivering a high standard of work and demonstrating the value this add will ensure that clients will recommend you to other businesses in their network or lead to return work.
Disrupting the Status Quo
Taking an innovative and pioneering approach to pricing and testing the sustainability of this as a model for a consultancy business will be an interesting experiment. To provide the options for businesses to procure services and Pay-What-They-Want based on the satisfaction of the results delivered requires a high level of confidence and trust in yourself and your ability to deliver great results for your clients.
Education
This type of approach does require customers to have some knowledge of what comparable consultants charge to allow them to determine what a fair price for the work they receive is. The advantage however is that level of payment is determined once the work has been delivered so the ability to demonstrate the tangible difference your work has made will increase the likelihood of you being paid your desired rate.
Fairness
I have a high level of trust that most businesses will pay a fair price for work they are highly satisfied with. I have a strong belief that people are inherently honest and want to do the right thing.
I set up Boost Consultancy, earlier this year so I could use my experience to support hospitality and food businesses to build strategies that develop sustainable sales growth and improve profitability. Over the next few months I am offering the opportunity for businesses needing support to pilot this new approach to pricing and work with me on a Pay-What-You-Want basis.
Would your business benefit from an experienced pair of eyes to help carry out an in-depth review of a specific area to identify opportunities to pivot or transform the business model to improve profitability?
Do you need support developing and implementing new processes and ways of working to support the delivery of a compelling and relevant customer experience?
Are you looking to open a new restaurant or concept and need senior expertise to help with the planning and ensure the project is delivered within scope and on time and in budget?
If any of the above does apply to you or if you are interested in understanding more then please contact me for a free consultation at
enquires@boost-consultancy.co.uk
or telephone me on 07595 278159 I would love to hear from you. If not then please share as someone in your network may benefit from a conversation with me.