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Monday, January 29, 2007

Price Sensitivity: What's the Best Position for Your Clients?

What is price sensitivity? The term basically describes the extent to which a buyer uses the price as a reason to buy a service or product. As a computer consultant, you want to get clients that have very low price sensitivity. A client with low price sensitivity will pay you what you charge because they want you to do the work.

Benefits of Obtaining Clients with Low Price Sensitivity

1. You can choose the best quality clients because they will pay your rates no matter what they are.

2. You will be able to set rates at the high end of a range and still get low price sensitivity clients.

3. Low price sensitivity clients are usually serious about needs and will let you build their systems with greater freedom.

You need to base your marketing decisions on price sensitivity in order to get the best clients. When you are sure those falling into your sweet spot have low price sensitivity and vice versa, you can make the appropriate decisions about marketing and sales.

High Price Sensitivity Clients


If you direct your business towards clients with high price sensitivity your rates will have to be low. While this might work for some computer services businesses, high prices are always preferable.

Clients in micro businesses and home-based businesses are typically those that will have high price sensitivity. If you want to work with this type of client, then you will have to try to get a very high volume of customers.

Charging Premium Rates by Focusing on Price Sensitivity


In order to set the highest rates for your services, you have to focus on clients that have low price sensitivity. Regardless of what you choose to do with your business, you have to think about price sensitivity when creating a sales and marketing plan. Keep in mind that high rates often equate to higher quality in clients’ minds. Therefore a majority of clients will choose you based on price.

Blogged By: Computer Consulting 101 Professional Kit

Saturday, January 27, 2007

Prevent Subcontractors from Nabbing Your Clients

Subcontractors can really help your business because they can offer you the opportunity to provide additional services. But how do you prevent subcontractors from nabbing your clients?

When you first decide to bring in subcontractors as an IT consultant, you have to prevent competition.

Tips for Hiring Subcontractors

1. Do research on every company to which you want to subcontract. If the company is a competitor, look further. You want to get people in deep niches that have nothing to do with what you do.

2. Have a few meetings with prospective subcontractors and really get to know them. The relationship with subcontractors should evolve during the course of some lunches and emails to build trust.

3. Make subcontractors sign an agreement that has non-compete and non-disclosure clauses. Of course, have these documents attorney-reviewed. Paperwork won’t stop subcontractors that are determined to get ahead, but will make it harder for them.

The Main Point About Subcontractors

Finding a subcontractor is the first part of a long business process. When you find good subcontractors, you have to qualify each of them to make sure each is worthy of your trust before introductions to clients.

Blogged By: Computer Consulting Kit

Monday, January 22, 2007

Where Should You Begin Your Search for New Business Partnerships?

New IT consultants are often interested in business partnerships. The most commonly asked question is, “When is the best time to begin the search for business partnerships?”

If you are a new computer consultant, you will want to know if you should start looking for business partnerships before your business is established. The answer to that inquiry is that you should be looking for business partnerships and opportunities constantly. You will have more to give to prospective business partners when your business is more established, but you should always pay attention to any opportunities that arise regardless of your position.

Be open to chances for business partnerships and be honest with all the niche technology providers with which you come into contact. You should tell them at the beginning that you are just starting your business, but that you will need their help in the future.

You can’t promise anything, but you can ask for a card from these people to find out more about their businesses and what type of business partnerships you can have. View this as not only an opportunity for the potential partner but also for you and your networking.

Conversations with potential business partnership opportunities should end with a call for them to tell you about any clients they might have that would need services like those you offer.

A lot of business partnerships will arise because clients request a product or service. You need to fill the need in order to let a business partnership arise. Networking is the key to establishing healthy business partnerships.

Blogged By; Computer Consulting 101

Saturday, January 20, 2007

How Do Project Proposals Become Sales?

Project proposals can help drum up good business for your computer consulting company. Project proposals are used in two situations: getting a completely new client; doing more sophisticated work for an existent customer.

Typically you will do a project proposal after you’ve already gone through a proving ground project. You may do an IT audit or have fixed a PC, but you should have a foundation and a customer that likes you, knows you and has some trust for your work. Having this relationship with a customer already can help sell a project proposal easily.

Of course, follow-up is an important aspect of getting work out of a project proposal. You need to use, minimally a four-to-six-week follow-up cycle. You need to look to see if anything has changed or if there is something small to work on right now before you continue with the project.

You need to keep your name in front of your prospects and customers. If something is just a couple hundred dollars, you need to stay in the minds of your customers and prospects. You don’t want some other company to take your place.

Whenever you’re reviewing a project proposal, you need to be the first company called when someone needs IT issues handled. You also need to be in the right place at the right time sometimes.

Urgency will get a project proposal into the sales zone. If there is no urgency, you need to wait on the project for a while. Stay in touch with customers and get ready to do some small tasks until the larger project is needed.

Blogged By: Joshua Feinberg

Monday, January 15, 2007

When is the Right Time to Sell IT Audits and How Do You Do It?

IT audits can offer additional revenue for a systems integration business. Many times professionals in the IT industry think that IT audits are hard to sell. However, two situations can be very conducive to selling IT audits.

Times to Offer IT Audits

1. When a prospect is looking for a new vendor. If a prospect wants to replace a technology provider or replace a vacancy you can sell IT audits fairly easily. Prospects may have had a falling out with someone or had a bad experience that has led them to seek help and support elsewhere. In this situation your prospect probably is not clear on his/her wants needs, and an IT audit can help clarify both. IT audits help you start anew and determine the best approach for a company’s specific IT needs. You already know the prospect is willing to pay for the IT audit because he/she has already paid for IT services in the past. IT audits are merely a natural part of your services.

2. When you’ve just successfully managed a crisis. If you’ve just finished saving the day for a company, you are in a good position to sell IT audits. The customer already thinks you’re great and has shown you that he/she can pay for IT services and is willing to do so. IT audits give you and the new customer a long-term plan. The suggestions will make sense and the customer will be willing to accept your solutions no matter what they cost. An IT audit acts as a tool to get to more long-term services.

IT audits are easy to sell if you offer them at the right time. When people want to replace a provider or have just been led through an emergency, they will be most likely to accept you as a systems expert.

Added By: Computer Consulting 101

Saturday, January 13, 2007

Don't Offer Free Phone Support, No Matter What!

Many brand new computer consultants lose money on phone support. They may want to present customers and clients with the best service so they include phone support in service contracts. However, many will give it away for free as a result.

If you’re using an hourly billing rate, your hours spent on phone support need to be handled the same way as on-site time. You will be contacted frequently if you offer phone support and will be dealing with it on a remote basis. Your clients will be able to get you anywhere.

Phone Support Takes Time

Phone support takes a lot of time, and if you are not charging for it, it’s free to clients and will suck valuable profits. No business that wants to survive charges nothing for services. Don’t offer phone support for free, not even if you’re claiming only offer it to good clients or “just this once.”

Free Phone Support Drains Incentive

When you offer phone support for free, you are minimizing the desire among clients to call you for on-site time. Why would a client want to pay you $100 for an on-site visit if they can call you for free? And will the clients that would take advantage of free phone support be good clients for the long term? Eventually, human nature dictates that these types of clients will take advantage of free phone support and drain your funds.

Don’t give away anything for free – not even phone support, which may seem simple. The information you give via phone is as important as on-site work. Giving away phone support for free will not help your business and will not increase loyalty among clients. Even the best clients will abuse free phone support.

Blogged By: Computer Consulting 101

Monday, January 08, 2007

When Starting a New Business, What People Do You Tell, and in What Way?

The process of starting a new business is difficult, and finding paying clients can be a real challenge. No one will know you are starting a new business if you don’t announce it to them, so you have to start spreading the word immediately.

Tips for Telling the Community about Your New Business

1. Get at least 50 people on your contact list to tell.

2. Start with family members not in your immediate family, including cousins, aunts, uncles, grandparents, nephews, sister in-laws, etc.

3. Tell people in your immediate circle of friends you are starting a new business.

4. Think about where you spend your money. The people you should tell you are starting a new business should ideally be those capable of returning the favor. Look at your credit card statements and bank statements and think about people you send money to on a personal basis each month: accountants; attorneys; cleaning services; babysitters; contractors; doctors; dentists; hairdressers; repair people; insurance agents; tutors; veterinarians.

5. Your list will be longer than the above, but these tips can help you get a start on the number of people you need to tell you are starting a new business.

6. Each time you do business with companies that give you a direct contact with an owner, manager or other major decision-maker tell these people personally you are starting a new business. Visit them, call them or send them an email.

7. When you pay a bill to a local company, include a business card to efficiently tell them you are starting a new business.

8. When you get phone solicitations, don’t let the caller go. Tell the person you don’t need their services at the moment, but that you will hold onto information. Then tell them you are starting a new business and try to get a referral.

When starting a new business you need to be prepared to state your presence in the community loudly. Think of everyone you know and begin the process of telling each person about your new business.

Blogged By: Joshua Feinberg

When Starting a New Business, What People Do You Tell, and in What Way?

The process of starting a new business is difficult, and finding paying clients can be a real challenge. No one will know you are starting a new business if you don’t announce it to them, so you have to start spreading the word immediately.

Tips for Telling the Community about Your New Business

1. Get at least 50 people on your contact list to tell.

2. Start with family members not in your immediate family, including cousins, aunts, uncles, grandparents, nephews, sister in-laws, etc.

3. Tell people in your immediate circle of friends you are starting a new business.

4. Think about where you spend your money. The people you should tell you are starting a new business should ideally be those capable of returning the favor. Look at your credit card statements and bank statements and think about people you send money to on a personal basis each month: accountants; attorneys; cleaning services; babysitters; contractors; doctors; dentists; hairdressers; repair people; insurance agents; tutors; veterinarians.

5. Your list will be longer than the above, but these tips can help you get a start on the number of people you need to tell you are starting a new business.

6. Each time you do business with companies that give you a direct contact with an owner, manager or other major decision-maker tell these people personally you are starting a new business. Visit them, call them or send them an email.

7. When you pay a bill to a local company, include a business card to efficiently tell them you are starting a new business.

8. When you get phone solicitations, don’t let the caller go. Tell the person you don’t need their services at the moment, but that you will hold onto information. Then tell them you are starting a new business and try to get a referral.

When starting a new business you need to be prepared to state your presence in the community loudly. Think of everyone you know and begin the process of telling each person about your new business.

Blogged By: Joshua Feinberg

When Starting a New Business, What People Do You Tell, and in What Way?

The process of starting a new business is difficult, and finding paying clients can be a real challenge. No one will know you are starting a new business if you don’t announce it to them, so you have to start spreading the word immediately.

Tips for Telling the Community about Your New Business

1. Get at least 50 people on your contact list to tell.

2. Start with family members not in your immediate family, including cousins, aunts, uncles, grandparents, nephews, sister in-laws, etc.

3. Tell people in your immediate circle of friends you are starting a new business.

4. Think about where you spend your money. The people you should tell you are starting a new business should ideally be those capable of returning the favor. Look at your credit card statements and bank statements and think about people you send money to on a personal basis each month: accountants; attorneys; cleaning services; babysitters; contractors; doctors; dentists; hairdressers; repair people; insurance agents; tutors; veterinarians.

5. Your list will be longer than the above, but these tips can help you get a start on the number of people you need to tell you are starting a new business.

6. Each time you do business with companies that give you a direct contact with an owner, manager or other major decision-maker tell these people personally you are starting a new business. Visit them, call them or send them an email.

7. When you pay a bill to a local company, include a business card to efficiently tell them you are starting a new business.

8. When you get phone solicitations, don’t let the caller go. Tell the person you don’t need their services at the moment, but that you will hold onto information. Then tell them you are starting a new business and try to get a referral.

When starting a new business you need to be prepared to state your presence in the community loudly. Think of everyone you know and begin the process of telling each person about your new business.

Blogged By: Joshua Feinberg

Saturday, January 06, 2007

Computer Service Contracts Can Provide Benefits to All Your Clients

Computer service contracts can provide as many benefits to your client as they can to you. Part of your job as a computer consulting professional is to inform clients about the many benefits to them of computer service contracts. If you can clarify benefits of computer service contracts, you can get clients to sign up for them.

Benefits to Clients of Signing Computer Service Contracts

1. Computer service contracts give clients dependable and consistent service when they need it. A computer service contract is an insurance policy that allows you to cover important needs and provide peace of mind.

2. Clients involved in computer service contracts own part of your business. While you are shared amongst many other local businesses, each client can count on you as he/she would a technology staff member.

3. Nothing gives a client peace of mind like a computer service contract. Computer service contracts commit you to a long-term availability for a long period of time.

4. Computer service contracts allow you to offer discounted hourly billing rates and waive premiums, surcharges and fees to offer lower billing minimums to clients.

5. Clients involved in computer service contracts get priority in terms of response time and scheduling.

6. Computer service contracts allow clients to get a range of virtual IT services and perks you are able to offer because of your relationships with other businesses in the area. Long-term loyal clients will get special benefits.

Computer service contracts present endless opportunities for both you and your clients and require no hard selling. If you present information clearly to clients, the benefits of computer service contracts will be obvious.

Blogged By: Computer Consulting KitComputer

Tuesday, January 02, 2007

Overcome Client Objections by Making the Client Do the Work

In order to overcome client objections, you need to ask specific questions to lead them to the decision that an IT audit is in their best interest. By giving the power to the client, you are making him/her the way to overcome client objections.

You need to get your clients to see how important your solution is when overcoming objections. This is achieved by asking questions that will make them see on their own the importance of IT audits to their businesses.

A Series of Questions to Ask to Overcome Objections

1. When were the majority of your systems installed?

2. How long ago were your systems installed and who installed them?

3. Is the person that installed your systems still working with you for maintenance?

The above questions will get clients thinking about overcoming their objections. They will realize the actual length of time that has passed since the systems were installed and might even realize they haven’t been very diligent about maintenance.

More Questions to Help Overcome Client Objections: Maintenance

1. What kind of maintenance do you receive and how often is it completed?

2. Do you have a log that tracks maintenance activities and support requests?

3. Do you have a history of support of copies of previous invoices for support?

Typically, these questions will make clients realize how disorganized they have been about keeping track of maintenance for important equipment and systems.

The Final Stage of Overcoming Client Objections

To overcome client objections and sell your services, you need to ask about the number of people that have been involved with the system throughout its history. A typical sweet spot small business client will typically have had three to five different companies involved in support over the past few years. A lack of centralized, single support will mean extreme disorganization of paperwork and will make the final stage of overcoming client objections easy.

If you can make the client think he/she has control over the destiny of his business with IT audits, you will be successful at overcoming client objections. The client will be more likely to fully understand the need to have regular organized IT support if he/she can see the benefits and errors of past ways.

Blogged By: Computer Consulting 101