The Tribune

By D'ARCY RAHMING

I do not follow the motto that “you get what you pay for”. I think one of the problems that many businesses face is that they charge before they give value. For example, I am in the consulting business. One of the best things about writing this column is when people stop me and ask me for advice on business or marketing, or an idea that they have. I view this as a great opportunity for themselves and me.

Time permitting, I always speak freely with them and give them the best advice I have on the subject. People appreciate it, and sometimes they come back and hire me for further services. Many times they do not.

Many consultants would disagree with this and say ‘charge for your best information’. But I will let you in on a little trade secret. I usually give “what to do” information for free, and charge for “how to do” information.

Now, what do I mean by “what to do” information? I’ll explain in this example that just happened to me recently. I walked into a business establishment and was delighted to see that it was owned by a former student. He asked me: “Give me your best advice on how I can market this business on what you have just seen.”

I thought for a moment, then told him: “You should collect the contact information of everyone that comes in here, as well as what they order. Then you can contact them later and tell them about new offerings, etc.”

That is ‘what to do’ information. ‘How to do’ information is much more involved and time consuming. It would first require that I find out which free upgrade or product is desired by customers, and how best to exchange it for contact information.

As a second step I would need to analyse the current technology to see if it were capable of putting that information in.

Or to see if a manual process were needed. Or maybe even if he could arm his employees with a cell phone app that would record this contact information for him.

‘What to do’ information requires more analysis and deeper knowledge of the situation.

Therefore, it takes more time.

And that is why it costs. This is adaptable to many businesses via some kind of free trial, in order to get contact information and familiarity with your product or services. Marketers should not hesitate to give value before receiving payment, as it can lead to a big pay-off.

NB: D’Arcy Rahming holds an MBA from the Kellogg School of Management, and has helped small and large clients, both in the Bahamas and internationally. Go to DArcyRahming.com and get his free video training series on How to Get a Paycheck From International Clients While Living in the Bahamas.