Added $600,000 per year in revenue
Optimum Retail Solutions increased their fees by a whopping 600 percent, adding an additional $600,000 per year in revenue, through strategies learned from Consulting Success®.
Unpredictable Revenue and Scaling Woes
Vince Rath’s company, Optimum Retail Solutions, provides executive coaching, leadership development, and operational improvement consulting to jewelry retailers. With his background in the corporate world, both as senior leader of a large enterprise and running a family-owned jewelry business, Vince knew he had plenty of wisdom and expertise to share as a consultant for growth companies in his industry.
However, he quickly encountered a specific problem that became a hindrance to the growth of his consulting business. In creating his fee structure, he decided to charge a daily rate at a price that he thought clients would pay. Since all of his work was done onsite, that daily rate became a problem when scheduled trips got canceled or rescheduled at the last minute.
The Danger of Rescheduled Onsite Visits
If he didn’t work onsite, he didn’t get paid. As a result, his revenue became unpredictable. Consequently, some of the days on his calendar that were blocked out as paid days wound up becoming days of absolutely no income. While he dreamed of scaling his business, he spent an inordinate amount of time taking on extra work just to make up for that lost revenue.
When he began working with Consulting Success®, one of the first things we taught him was how to restructure his fees in a way that would eliminate the unpredictable income. Instead of a daily rate, he began charging a sizeable deposit for each project, followed by a monthly retainer fee. We also encouraged him to begin charging what he was truly worth, which resulted in Optimum Retail Solutions increasing its fees by a whopping 600 percent!
Uncovering Real Value Leads to 600% Fee Increase
By eliminating unpaid onsite visits, charging deposits and monthly retainer fees, and increasing their rates, the company experienced an increase in revenue of $600,000 per year, which enabled them to add three additional consultants to their team.
As Vince said, “One of the most important things I learned from Michael through Consulting Success® is that we often undervalue our own services. If you provide value, if you’re professional, and if you’re personable, clients will pay what you’re worth.”
Vince was also encouraged to begin having regular conference calls with his clients, along with additional training sessions, and he is in the process of developing a learning management system right now. This has enabled the company to handle more clients without losing the personal touch, and his company had been able to scale more effectively as a result. Indeed, with reliable revenue, higher fees, and a scalable system, the sky is the limit for Optimum Retail Solutions!
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