Charging For Calls And Guarantees

Charge the client for cause.Yeah, right.Interesting question,I don't thinkwe have touched uponthis particular variantof this question before.All right.I think attorneyscharge by the minutelike by the quarter hourincrement that always makesme feel reallyuncomfortable whenI get on the phonewith my attorney,especially when he startsasking me, How's my family?I'm like, shoot my god, I'mgetting charged a lot of moneyright now, and I'mlike, they're fine.Thank you.Let's get back tothe task at hand.How's the contract coming?That kind of stuff.I don't like that.OK, so when I say you needto charge for the thinking,we got to get away fromexchanging or selling timeand it's a radicalconcept, right?I want to chargefor thinking and Iwant to chargeenough so that I feellike any subsequent callsor any kind of little bitsof customer service or goingthe extra mile for the clientis well covered within theumbrella of the price itself.So when we dodiscovery, it's goingto cost the client anywherebetween 30 to 90,000.That's a lot for acouple of conversationsand it's fantastic.So I think I'mcovered at that point.I think when you'regetting into.Well, they calledme three times.And I need a chargefor that, it'sprobably becausewe haven't chargeenough overall thatthere wasn't enoughthere in the deliverables northe strategic thinking parts.OK, now, I don'tknow if I've answeredthat question, kansa, so comeback at me if you're stillin the room.No, that's OK.You answered it.Very good.But I am being abit brutal, though,because I need to goin about 40 minutes.And I would be wantto ask you if youcould go for the otherquestion to within 40 minutes.I can do it.I can do it.Thank you.So, so brutal.All right.Her question, numbertwo, is what'sthe reason why youcouldn't give a guaranteein the original price?But we're able to do sowhen you raise the price?And is there anydifference between whatit is that you're doing?That's what she asked.All right.So let's go over this.Let's go over thisduring that conversation.And this is a term you guysneed to memorize and use thisas part of your dialogue, ok?When you say, we hope,if we do things right,whatever deliverablewe're going to createwill yield you a net positiveor gross revenue of $2 million.Let's just say that.$2 million.So how much should we invest?To make this happen, so let'sjust say it's a website,so if we fix thewebsite, we shouldcapture another $2 million inrevenue in year one, right?That's what we should.So how much moneyshould we spend on this?And they're like,well, I don't know.You tell me you're the expert.And then you cansay very quickly.Most consultancies startat 20% for the first year.So 10% of $2 million is 200,020of that would be $400,000.OK now.Counting what is it calledpricing for discountingfor uncertainties,the term you wantto use, discountingfor uncertainty.How does 400,000 sound?So you're already saying I'mnot guaranteeing this result,because if I couldguarantee it, my price wouldbe much closer to $2 million.So it's baked into the languagethat you're using already.Because there arevariables I cannot control.I can't control thequality of the product.I'm not running yourcompany a customer service.The things that I cancontrol, I can guarantee.So there's some discountfor uncertainty.And that's not goingto work for me, Chris.I want you toguarantee the result.Then naturally, I say,well, I'm going to haveto charge you a lot more.Are you OK with that?So if I charge you 75% ofthat, would you be willing?Well, if they say yes,you just hit pay dirt.It's fantastic.If they say no,then they're goingto have to reconcilethis with themselves.20% is a good negotiatingstarting point.Chances are you're not goingto get that, and that's fine.They can negotiate you down to10 percent, which would stillgive you a budgetof 200 thousand,which is more than whatyou normally would ask for.If you were to pricebased on how muchit cost to make the thing.OK, now now you'resaying, OK, well, fine,what if they say yes, what ifmy wildest dreams come trueand they drop?75% of the budget onme, which is, I think,a million and a half dollars.OK for a millionand a half dollars,a client wants to payme a million and a halffor something I wouldhave done for 200,000.I was staying in engagementuntil this thing is done.So I will then testprototype reiterate,make changes, dowhatever it is Ineed to do to get themacross that finish line.OK, that's very clear.Yeah so when they payyou so much money,the difference is I'mgoing to stay focused,I'm going to put a teamon this to make sure weget across that finish line.And probably beforeI accept this,I want to have very cleardefinitions of success,what my role is andwhat their role is, ok?And I can't beresponsible for thingsthat I'm not in control of.That sounds reasonable, right?So if they're salespeople,all of a sudden quit.I can't be accountable for that.So to get an attorney involved.So here's the thing.If you're able to.200,000 to 1 and1/2 million dollars,you can spend$10,000 on attorneyand work out a guarantee.How to define success.Cecil, when money comesin, the world opens up.You can hire thebest CEO people,the best conversionfunnel people,you can hire the verybest of the best.And you will still have amillion in your pocket net.To this day, Ithink I've only hadto give twoguarantees in my lifeand never had to act upon it.So if you get a question from ifyou charge for LEGO like 20,000and you give no guarantee,the people can ask you,why don't you givethe guarantee?Because it's already20,000 and it'sa lot of money fromtheir side of things.So how do you in asense, I do understandit was not a great, agreat phrase, properlyphrased question, but Iunderstand the sentiment,I believe.OK, so kenzo, well, Iwon't talk about this.All right?A logo for 20,000.I can guarantee nothingexcept for it will be the logoand it will be done.Because I don't knowwhat a local does.I really do not know whatbusiness problem a logo solves.So part of the way thatyou enter in this dialogue,it's to solve a businessproblem with a clear definitionof success.We need metrics.We need a way toquantify our results.Now you could give a certainkind of guarantee, let's say.And if clients are pushingback on a 20,000 logo,we have to have a differentkind of conversation.This is not really theguarantee kind of question.All right, but you could say,I know that's a lot of money.And let's say previously youwere only able to charge 2000.So $20,000 is a 10x jump.From 2000.You could saythis, you could saywe can do focus grouptesting, and if itscores more than 80percent, 86 percent,then my guarantee is done.You can find some kindof objective measurementto determine success, notlike it or I don't like it,or we think it's effectiveor not effective.You could guarantee that thelogo will clear the Patentand Trademark Office.You could make certainguarantees like that, ok?Does that feel fair?Yeah, very because I thoughtthat you couldn't giveany guarantees before you couldgive the guarantee, if you knowwhat I mean, so it wasall at all or everything,but it's still alarge amount of money.So that's why I asked.Well, let's talk about that.So if companies like Landonassociates associatesand moving brandsand fast brandsand all these kind ofcompanies that are out there?Charge a million for a logo.Well, 20,000 seems quitelike a bargain, doesn't it?That's true.Yeah so this is whereyou need to startchanging your mindsetin terms of is it fairor is it high or low?It just is.And every client canafford different amounts.Some clients can affordless, some clientscan afford a lot more.So let's remove the labelon the logo and the priceand just say what it is.It's $20,000.That's what it takesto hire me to do this.You can get it done for $0.99if you want, just not by me.Let's take the judgmentaway from that.OK, you guys will be surprised.I think it's CBT cognitivebehavioral therapythat when we assign differentwords or actions to things,we can actually changeour whole mindsetor thinking around stuff.So what we haveto do is decouplethe words we attachto things and thenwe can see themfor what they are.We can assign new words.I think, 20,000 is a bargaincompared to what we charge.Maybe you shouldthink like that.Yeah Hi.Yes, Paul.Hi you shouldn't saythis to the client,but the way I think about itas well is what would they loseif you do a really shoddy logo?So if you BMW or someone ingave them a really awful logo,what's the costto their company?If it was really poor,because that's must bethe value of that logo, right?Yes, and you can actuallysay that very thing.In the conversation in one ofthese videos and the protocolsI actually do not exactly.So let's just saysomebody is coming at you,and I think I'm staying onthis a little bit longer than Ishould, but it'simportant so that wecan put this issue to bedif somebody is like 20,000.That's a lot for a logo.You should sayyes, you're right.It is a lot for a logo.Maybe this logoisn't that important.Maybe we should spend aslittle as possible on the logo,How's that?Well, I don't knowabout that cancer.Then you say, well.What's at risk ifthis doesn't go right?What's the cost of thisgetting screwed up?OK, we don't like thecompany, we get sued.We print a bunch ofthings, we make signsand they just all don't work.And once you start spreadingthis across social media,that means we haveto update everything.So what's the human cost?What are the resourcesthat are being consumed?What's the opportunitycost of this going wrong?Well, it's actually quite high.Oh, is it?So maybe it is worth doingright the first time.That's it.Let them prove to youwhy it's important.Jonathan Starkstechnique of why this?Why now?Why me is perfect?Why? why do we evenneed to do this, let'ssolve a big problem.Maybe the logo isnot the answer.OK OK.OK putting to bed and thenand then see you later.