What’s the value of each of your initial consultations?
The formula is simple.
$ total revenue / number of consults = $ value per consult
Let’s do the math for a hypothetical small firm.
Her firm’s revenue is $950,000. Her team conducts 240 consults per year.
So $950,000 divided by 240 equals a per-consult value of $3,958.33.
Take note that the value per consultation doesn’t factor in the conversion rate or the number of clients who retain. We don’t need that information for this calculation.
Let’s round up. Her consultations are worth about $4,000 per meeting.
When she realizes that each consultation is worth $4,000, she starts thinking differently about each consult.
How Valuing Consults Can Shift Your Thinking
Now, she’s thinking differently about a number of things:
Making Time
She’s blocking time on her calendar for last-minute consultations. She doesn’t want someone going elsewhere when she’s unavailable. She’s getting callers in quickly.
Following Up
When people cancel or don’t show up for a consultation, she’s following up and getting them rescheduled. That’s $4,000 that just canceled.
Hanging Up
She’s hanging up the phone and walking out to the lobby when the potential client arrives. That’s $4,000 waiting in her lobby.
Skipping the Party
She’s letting the babysitter handle the birthday party so she can slip two more consults in this afternoon. After all, the kid will have another birthday next year. Too far? Okay, just kidding on this one.
Intake
She’s focused on the intake process and making sure there’s always someone to answer the incoming calls. Each call represents a potential consultation. There’s money in that ringing.
Cleanliness
She’s straightening up her office before the consult and making sure the plants aren’t dead. She wants to make a great impression.
Client Experience
She’s studying the client experience from check-in through payment. She’s looking carefully at the retention process. She’s examining her client agreements and the behavior of her team.
Everything
All elements of her process relating to initial consultations get examined carefully when she realizes that one screwup along the way costs her $4,000. That’s a lot of money lost because the voicemail didn’t get checked or the team gave bad directions to the office.
Calculate the value of your consultations. Then use that information to keep yourself focused on the elements of your practice that drive revenue. Consultations matter. Usually, more than we realize.
