Never Be the Cheap Guy
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So this week's question is, should I cut my fees to win projects? One thing you never want to be known as is the cheap guy. That's a label you never want. |
Cheaper Price
"Help... the other architect is 1/3rd my price. What do I say to the client?"
In this quick video I will explain the mindset, words and frame you can use to move the conversation away from price and onto quality.
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CLICK HERE for Video Transcript
A client had a $3 million project in Australia, and his fee was going to be about $150,000. However, someone else offered to do the job for $50,000. Dean messaged me, asking for help on what to say and do. |
Differentiate or Die Masterclass
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Hey, welcome everyone to the Architect Marketing Institute masterclass webinar on differentiation. We call it "Differentiate or Die" based on a famous book by a great marketer. So, Richard, what do we have in store for our participants today? Well, one thing I've noticed over the last ten years is that architects find it really hard to differentiate themselves. There are a lot of architects graduating from universities, and many of them are quite good. Architects are very well trained, undergoing years of training similar to doctors or lawyers. There are a lot of good architects, but the problem is how to differentiate yourself. One big issue is that architects get questioned on their fees more than any other profession. Is that something you can relate to? Blair Inns, whom I'm speaking to on Friday, said that the architecture profession has one of the worst returns on education. Doctors and lawyers can earn big money, but as an architect, you can earn decent money only if you're very switched on. That's part of what we're looking to help you with today. The agenda is to go for two hours in a workshop format. You will actually do some work during the session, submit it in the chat window, and we'll review it to ensure you understand. We'll go through a tool called the "Million Dollar Message," which is what we'll use to differentiate you. Hopefully, you have your workbook available, even in electronic format, to follow along. There are six steps that I'll take you through, so it will be handy to look at each page of the workbook. We'll have a five-minute break halfway through. Feel free to type any questions into the chat window. Eric and Christian will be watching and can answer your questions or interrupt me if needed. The Million Dollar Message is a six-part structure for creating a value statement that will differentiate you from other designers or firms. You just need to fill in the boxes and understand the process. Everyone who paid to be here will get a one-on-one review of their message with Christian, who is very good at weaving the six components together into something magical. If you haven't already booked your one-on-one, make sure you do that. Do we have any questions before we get started? If not, I have a question for you. On a scale of 0 to 10, how good are you at differentiating your firm or yourself personally? A 10 means you know what to say so that your ideal target market clambers over themselves to hire you, while a 0 means whatever you say doesn't make any difference. All right, let's see your scores. Curtis, 3. Lente, 6. Paul, 6. Daniel, 5. Donna, 4. Christopher, 5. Tony, 3. What about you, Paul? If you can get your Million Dollar Message above 8 today, your reward will be buying me a coffee. I'm on 25th and Park Avenue. Most of you should be able to communicate at a level 7 or 8 today, and with a bit of tidying up from Christian, you'll move up to close to 10. Think about how valuable that is. For those of you who rated yourselves around 5, let's see what you say to differentiate yourself. Paul says he has a codes certification that allows him to do certain types of work. Daniel offers full-service, turnkey, hands-on guided design. Tony has repeat clients whom he has saved many times with detailed analysis drawings, yet they still go for the cheapest architect. Curtis has lifetime experience in construction and LEED credentials. Heather provides full-team design architecture, bringing in her entire team so clients don't have to hire individually. Robert has a large sample of completed successful projects in a limited area. Now, read what you wrote down and ask yourself if it truly differentiates you. Is it unique enough to make the phone ring? Does it make you stand out from other architects who might have similar credentials? Differentiating yourself is not easy. It's one thing to say you're different, but another to put it into words that have an impact. The ultimate test is whether it makes the phone ring. If it doesn't, we need to work on it. Today, we're going to help you create a far more powerful message. By the end of this session, you should be able to communicate your value effectively. Let's start with a few concepts about value. What is value? It's elusive, but we need to define it. Is your value your fees relative to others? Clients often choose the cheaper option because they see your fees and compare them to others. To counter this, we need to get their eyes off the fees and onto the prize—what you deliver. If your value is a mystery, clients will only see the fee gap. We need to show them the difference between you and the cheaper option. You have different methods, skills, and tools that allow you to deliver more value. By shifting the conversation from a fee gap to a value gap, you can show that price is what you pay, and value is what you get, as Warren Buffett says. Let's start with a warm-up exercise. Rate your value again, but this time consider whether it makes the phone ring. Does your current value statement differentiate you enough to make your ideal clients choose you? Now, let's look at some specific steps to create a powerful message. We will focus on a niche buyer, a specific type of client, and a particular stage in their journey. We will solve one specific expensive problem with a unique product that contains a secret ingredient and delivers a transformational result. Chunking down makes it easier to be the best in the world at something specific. You don't need many clients if each project has a high fee. Focus on a small, lucrative market where you can be the number one option. Why should someone hire you? Your Million Dollar Message will answer that. It will fix a specific expensive problem for a high-value client early in their journey. It will use a unique product with a secret ingredient and deliver a specific transformational result. Let's start by identifying your niche. List the types of clients and projects that would be yes or no for you. Narrow it down to a specific client with a specific problem. Then, decide at what stage you'll create value. Remember the bus stop analogy? Clients gather ideas, evaluate options, and then seek professional advice. Most architects compete at the design stage, but it's easier to pick clients up earlier. Provide educational resources and problem-solving information to attract clients in the idea-gathering and evaluation stages. Identify the biggest problems or questions clients have at each stage. Solve expensive problems to create valuable products. For example, clients might ask how much it will cost or how long it will take. Answering these questions can be very valuable. Now, let's create a product. Name it and define the problem it solves. Outline a standard process and set a price. Add a promise and a backstory to make it compelling. Finally, come up with a secret sauce, secret weapon, or superpower that makes your product unique. This differentiates your service from others and adds value. By focusing on a specific client, problem, and solution, you can create a powerful value statement that sets you apart. Let's take a three-minute break, and then we'll continue with the next steps. When we come back, we'll work on productizing your service and adding an X factor. We'll also discuss how to articulate the transformation your service provides. I'll see you back in three minutes. Now that we are back from the break, let's focus on productizing your service and adding an X factor. We will also discuss how to articulate the transformation your service provides. To begin, think about the specific problem your service solves for your client. Focus on a niche, as we mentioned earlier, and create a unique product tailored to that niche. This product should have a secret ingredient or a unique selling proposition that sets it apart from others. Your goal is to deliver a transformational result that resonates with your client's needs and desires. Let's break this down further. You need to create a product name, outline the problem it solves, define the process, and set a price. This product should promise a specific outcome and have a compelling backstory that adds credibility and appeal. Now, think about your secret ingredient or unique selling proposition. This could be a unique process, a specialized tool, or a particular skill set that you possess. For example, if you offer a "Design DNA Workshop," this could be a unique process you use to uncover the client's design preferences and needs. This becomes your secret weapon or superpower that differentiates you from others. Once you have your product and secret ingredient defined, articulate the transformation it provides. Describe how your service will change the client's life or project. For example, instead of just saying you offer sustainable design, explain how it will reduce energy costs and create a healthier living environment for their family. The transformation is the key selling point that makes your service invaluable. To summarize, your Million Dollar Message should include:
Now, let's practice creating a Million Dollar Message. Write down your ideas and share them in the chat. We will review and provide feedback to ensure you are on the right track. For example:
Please share your ideas, and let's refine them together. Does anyone have an example they would like to share? Even if it's a rough draft, we can work on it together. Paul, I see you mentioned having a code certification that 90% of other architects don't have. This could be your secret weapon. Highlight how this certification ensures your designs meet all regulatory requirements smoothly, preventing any building department issues. This adds significant value and peace of mind for your clients. Daniel, you mentioned hyper-focused attention by a principal architect. While this is great, it might be more effective as a superpower rather than a secret recipe. Your secret recipe could be a unique method or process you use, such as a detailed feasibility study or a client-centric design process that guarantees a faster turnaround without compromising quality. Heather, you mentioned a detailed diagram for increasing property value. This could be part of your secret recipe. Emphasize how this process ensures clients get the maximum return on their investment, making your service indispensable for property developers or homeowners looking to sell. Remember, the key is to highlight what makes your service unique and valuable. Focus on the transformation you provide and the specific problems you solve for your clients. Let's continue refining these ideas and turning them into powerful Million Dollar Messages. If you have any questions or need further clarification, feel free to ask. Let's make sure everyone leaves this session with a clear, compelling value statement that will differentiate you from the competition. Eric and Christian, do you have any final thoughts or insights to share before we wrap up? Eric: I think what we've done today is create a detailed roadmap for crafting a Million Dollar Message. It's important to remember that this process can be adapted and refined over time. Use it in various contexts, from your website to client presentations, to ensure your value is clearly communicated. Christian: Absolutely. The key takeaway is to focus on specific problems for specific clients and offer unique solutions. This targeted approach will help you stand out and attract the right clients. Thank you, everyone, for your participation. If you have any further questions or need additional support, you can reach out to us at support@archmarketing.org. We look forward to seeing your progress and success. That's a wrap. We'll see you all again soon. Thank you for your time and engagement. |
Differentiate or Die Masterclass
This is a brand new version of the Million Dollar Message training (September 2023).
Click HERE to download the Workbook (Keynote, Powerpoint and PDF versions).
As you watch the masterclass, go through the workbook and create answers to the following key questions:
- What ultra-specific niche have you selected for your Million Dollar Message?
- What specific expensive/hot problem are you going to solve?
- What stage are they in when this problem needs fixing?
- What specific product/solution will fix this problem?
- What is your secret recipe/superpower/weapon?
- What is the before/after transformation?