It’s a basic principle of selling and recruiting. If you want to command higher recruiting fees than the next recruiter, you’d better be able to explain why you deserve them. It can mean the difference between struggling for 20% fees and winning more retained work than you can handle.
The secret is a strong value proposition, and if you don’t have one, you’d better establish one . . . IF you want higher recruiting fees and more retained work.
A few years ago, I decided there were better ways to spend my free time than mowing my lawn—all five acres of—for six hours every Saturday. I set up appointments with five local lawn service companies. I asked for a bid from each company to not only mow my lawn, but also to keep it the way it should look “green.” One by one, they came out, looked at my lawn with little or no discussion, gave me a “competitive” bid, and left.
Four companies came in around the same price. The fifth company’s representative said he couldn’t give me a fair estimate until the next day.
I was shocked that he wasn’t prepared to give me a quote on the spot. He said he needed time to complete a thorough analysis of my lawn care needs. The next day, he was back with a detailed proposal. He knew exactly how his company was going to fulfill my requirements. He presented a detailed mowing, maintenance, and treatment schedule for the entire year to ensure that our lawn would have the best look and design in the neighborhood.
By the end of his presentation, there was no question who would get my business. The sale was made—before we even talked price. And the same is true for your recruiting solutions: with a strong value proposition, the sale is made before you even talk fees.
Understanding your customer very well and knowing what you bring to the table and what differentiates you from your competitors are key components of your value proposition. They are the critical reasons a client would choose to do business with you, as opposed to all other alternatives.
The best recruiters in the world have developed winning value propositions. That is why some recruiters and recruiting organizations command the highest fees and secure more work than they can handle: because the perceived value of their services far exceeds the amount of money their customers are paying.
You Get What You Pay For
It’s the truth: people are willing to spend more money on a product or service if the perceived value is greater than the price. It is basic economics, and it happens every day in every industry in the world.
Recruiters and recruiting firms must bring real value to the table, value greater than that of their competitors. That is the foundation of a strong value proposition.
In my next blog post, I’ll explore the steps involved in creating a winning value proposition.
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Jon Bartos, a guest writer for the Top Echelon Recruiter Training Blog, is a premier writer, speaker, and consultant on all aspects of personal performance, human capital, and the analytics behind them. In December of 2012, Bartos joined trustaff Solutions as the president. Founded in 2002, trustaff Solutions has been distinguished nationally five times by Inc. Magazine as one of the fastest-growing, privately-held companies in the country. Click here to visit Bartos’s website.