How to Revamp Outdated Value Propositions

"Every prospect loves our work... until they see the price." A struggling agency explained why they keep landing clients with low budgets. They try to raise prices, their close rate drops, and the agency is back to offering lower prices. The pattern isn't about stingy clients. It’s a system that’s wired to attract and accept low-budget work. How the low-budget cycle shows up: - Value proposition is unclear and/or differentiation is non-existent; price becomes the only comparison point. - Referrals come from past low-budget clients, reinforcing the same buyer profile. - Proposals list tasks and hours, not business outcomes, making it easy to commoditize. - No floor on project budgets, so the team keeps saying yes to stay busy. There's no silver bullet to suddenly unlock greater budgets from clients, but across our Barrel Holdings agencies, we take a systems-based approach to moving upmarket and expanding client spend. 1. Map the breakdown: - Generic positioning, no ICP filter, effort-based pricing. - Proposals emphasize deliverables over impact; no tiered options that frame value. - Seeing clients only for their initial project value instead of strategizing for lifetime value (e.g. small $5k audit can lead to $100k of implementation work over next 9 months). 2. Re-ground in core fundamentals: - Create value for clients: anchor on outcomes even if you're selling hours. - Invest in marketing: build a pipeline that lets you walk away from poor-fit deals - Set clear, simple goals: more opportunities can lead to bigger deals (e.g. send 100 custom video sales letters to key targets over next 90 days) 3. Close the operational gaps: - Sharpen positioning around a single painful problem you solve. - Design a flagship package, then layer premium tiers to anchor higher budgets. - Shift to option pricing that contrasts impact, not effort. - Rebuild top-of-funnel with content, outreach, events, and partners aimed at right-fit buyers. 4. Reinforce with structure, rhythm, and feedback: - BD lead must gatekeep projects with disciplined qualification criteria. - Monthly review of pipeline by budget band and win rate. - Dashboard shows deal size, stage, and target vs. actual. - Bonuses weighted toward client retention & account growth vs. one-off projects. - Win-loss interviews feed positioning tweaks quarterly. 5. Watch the ripple effects: - Larger but fewer projects can pinch cash early; insist on tighter milestone terms (40 / 40 / 20 or monthly retainers up-front) and arrange a credit line before you need it. - Prove value quickly; build outcome-anchored checkpoints. - Turn poor-fit inquiries into upside: set up a vetted referral network with a standard hand-off and commission tracking so declined leads still generate revenue. (continued in comments) == 🟢 Find this helpful? Subscribe to AgencyHabits for weekly systems insights. The full Agency Systems Playbook drops soon—subscribers get first dibs.

If your value proposition sounds like your competitors, it isn't a value proposition... Every week, I guide companies in crafting their unique value narrative. But when I pose the question, "What's your value proposition?" I hear an echo "We have the highest quality solution" "Our service is unbeatable" "We have the best people." "We offer the best value" I'm sure you do...but this is not your value proposition. If these exist in your value proposition toss it out. You are literally talking in static. The human brain assumes you are lying and ignores these statements. A value proposition needs to have 4 elements to be strong: 1. Easy to understand 2. Problem-focused 3. Differentiated 4. Measurable As an example, I was working with a CRM implementer the other day. Their initial pitch? "We have 30 years of experience and 100s of certified consultants. Due to the quality of our people, and deep expertise, we ensure your CRM implementation is finished on time, on budget, and delivers the results you are looking for" What do you see here that everyone else isn't saying??? Here was our revision: "We build CRM environments that salespeople want to use. This novel approach drives a 2x in adoption rates and significantly increases the amount of data, and accuracy of data imputed into the CRM. The results? Our clients get an increase in pipeline accuracy, account coverage, and better visibility to make critical business decisions" See the shift? It is focused on their novel approach to solving the biggest challenge with CRMs...sellers using them. While driving the value of that approach to outcomes business leaders care about. If your market story doesn't resonate with these principles, differentiation becomes a challenge. Without differentiation, you're just competing on price – a perilous race to the bottom. #valueproposition

In the past 8 years, I have helped consultants go from struggling to sell their expertise to closing 6 figure deals… In the beginning most consultants had this problem: Their offer wasn’t clear enough to make a decision maker say “yes”. Here’s how I help my clients fix their offer (this has generated 10+ figures in revenue for them) 1. Solve one painful problem. If your offer tries to do everything, it won’t stand out. Pick one problem your ideal client needs to fix NOW. NOT later, NOT someday, but NOW. 2. Make the outcome clear. No one pays for effort. They pay for results. Instead of saying, “I help with leadership development,” say:  “I help companies retain top talent and reduce hiring costs by 30%.” 3. Tie your offer to money, risk, or time. Businesses spend money to make money, cut risks, or save time. If your offer doesn’t connect to one of these, it will feel like a "nice to have" instead of a “must have”. 4. Price based on value, not effort. If your solution helps a company make or save $100K, charging $5K isn’t just underpricing, it’s making them doubt the quality. Charge in proportion to the impact. 15-20% of the ROI you bring in is a good start. 5. Test it in the real world. A great offer isn’t built in isolation. It’s refined through conversations, objections, and feedback from actual buyers. Get in front of decision makers, listen, and adjust. Most consultants spend months guessing. The ones who win get into the market, adjust fast, and keep improving. Stop guessing and start landing 6-figure deals → https://lnkd.in/ezG6qcTQ