2Bobs—with David C. Baker and Blair Enns

Dive into the art of crafting compelling proposals with multiple options that captivate clients. Discover how the psychology of choice influences decision-making and enhances perceived value. Learn about the significance of price anchoring and how to manage client expectations effectively. Explore innovative pricing strategies that align payments with the value provided, including performance-based incentives. Finally, uncover best practices in presenting pricing options, like using high anchor prices and naming options to clarify benefits.

Blair and David record a live episode at the Orpheum Theater in New Orleans for Bureau of Digital's Owner Summit. Thank you to Carl Smith and Lori Averitt at Bureau of Digital for hosting the live recording at the Owner Summit on February 7, 2020 in New Orleans. And thank you to the amazing staff at the Orpheum Theater for helping us with the production and staging!

David does all the heavy lifting for Blair in his recent article so they can finally discuss the overlap between Agile as a management method and pricing policy. LINKS "Pros and Cons of Agile…in the Real World" by David C. Baker 2Bobs episode 78: "Phase Your Client Engagements" Manifesto for Agile Software Development "Agile is Dead (Long Live Agility)" by Dave Thomas

Blair wants firms to get paid to write their proposals, which is the first of his four phases of client engagement. LINKS "Different Pricing Models" - 2Bobs episode 61 "A Beginner's Guide to Negotiating" - 2Bobs episode 53 "Alternative Forms of Reassurance" - 2Bobs episode 46 Transcript

David keeps encountering clients who don't appreciate how their account people actually contribute to their overall business, and Blair totally identifies with the traits that David describes. 2Bobs episode 44: "The Best Ways to Disrespect Account People" WHAT ACCOUNT PEOPLE DO, IN BROAD STROKES: Pull necessary data from the client, even when it's tough to get their cooperation. Sell recommendations back to them that are in their best interest. Lead the client. (Interesting fact: "strategy" is latin for "general" in army who leads.) Protect margins. Grow the account. Send the client to hell...and help them enjoy the trip (e.g., change orders). Read social signals and intervene before catastrophe strikes. Manage an account review, disputes, mistakes, etc. Follow client contacts to their next job. Keep ear to the ground as agency innovates client offerings. PERSONALITY: Goal is authority and prestige. Judges others by their ability to verbalize and be flexible. Overuses enthusiasm, selling ability, and optimism. Fears boxed in environment without room to grow.

Blair and David share their frustrations around some contracts that they have been asked to sign, making it clear why they are not attorneys. This episode does not contain legal advice. Get a lawyer for that: Sharon Toerek Candice Kersh Jeffrey Dermer Michael Lasky

David keeps seeing principals who get someone else to run their firm, which is not a good idea. Then he gets Blair's thoughts on why he thinks it happens. Links David C. Baker Seminar Win Without Pitching Workshops with Blair Enns Built to Sell: Creating a Business That Can Thrive Without You by John Warrillow Entrepreneurial Operating System Traction Library The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success by William Thorndike

David and Blair discuss the appeal and pitfalls of recurring revenue models and the trade-offs involved in pursuing monthly recurring revenue. They explore the differences between customized and productized services and the challenges faced by clients who try to create a productized service but end up wanting to customize it. The hosts also explore the motivation behind agencies deciding to productize their services and the trade-offs involved, as well as strategies for implementing recurring revenue effectively.

David brings up one of Blair's favorite topics: how they keep themselves and their clients from being trapped by requests for proposal. LINKS 2Bobs episode 70, "The Only New Business Indicator That Matters"

Blair and David share what they have learned as they have recorded 2Bobs podcast episodes for almost 4 years - what has worked well, what has been challenging, and what they would recommend to those agency principals who might be considering their own podcast. LINKS The Soul of Enterprise Episode 15: "The Best Learning Method Ever Devised: After Action Reviews" with Ron Baker and Ed Kless Build a Better Agency with Drew McClellan EconTalk with Russell Roberts Marcus dePaula, podcast producer and consultant BLAIR'S PODCASTING SETUP Telefunken M82 dynamic XLR microphone Audient iD4 audio interface Rolls MS111 Mic Mute Senal SMH-1000 Professional Field and Studio Monitor Headphones Apple QuickTime Player app for AIFF audio recording using the Maximum quality setting Skype for the conversation (audio only) DAVID'S PODCASTING SETUP Sennheiser HMDC 27 Professional Broadcast Headset with custom extension cable (so David can roam as he records) Audient iD4 audio interface Rolls MS111 Mic Mute Rogue Amoeba Audio Hijack for WAV audio recording of both David's mic and the Skype call (as a backup) Skype for the conversation (audio only) MARCUS' EQUIPMENT RECOMMENDATIONS MARCUS' REMOTE RECORDING INSTRUCTIONS USING CLEANFEED.NET