Justifying Your Value to Prospective Clients
Today’s Dietitian
By Kate Geagan, MS, RD
Vol. 6 No. 6 p. 18

I recently received a phone call from a fitness group (that I have taught for occasionally) asking me if I would write a manual for a two-day, 16-hour nutrition workshop that they could teach nationally. When I asked about a fee to do this, they said they weren’t going to pay anyone to do it but would instead give the author a 10% authorship fee every time the program ran. They assured me that this would be a fair transaction. However, when I asked more specifically about the numbers (eg, When would this be up and running? How many programs did they hope to run per year? What were their revenue projections?), they had no real answers except to say, “We’re still figuring that out.”

Needless to say, I politely declined. Yet, a quick look at any of the RD listservs confirms how many dietitians feel they are constantly being asked to give away their services for some type of discount or, even worse, forgo payment altogether in lieu of the wonderful “opportunity” being given to them. Funny—the idea of approaching my accountant or lawyer and asking them to negotiate on their rate would be unconventional. To have a plumber come to my house for free because of all the “word of mouth” I may generate in the neighborhood is absurd. Yet, in the nutrition world, this seems to be status quo.

How do we effectively quantify to clients our value and be sure we aren’t giving away our services for free? Are there times when we should provide something for nothing because the potential payoff would be bigger or because it would make good business sense? This is the stuff we didn’t learn in our internships.

Run the Numbers
When deciding whether or not a business arrangement is good for you, it is important to have a firm grasp of the numbers. Putting things in financial perspective for your client also makes your fee more understandable. Are you providing proven cost savings to a company? Are you putting more revenue in the company’s pocket? Have hard numbers ready to go as often as you can.

It is not enough just to say to a prospective client “because my time is worth it” or “because this will be good for your business.” How do you articulate that worth to your client?

Dina Aronson, MS, RD, LDN, founder and director of NutraWiz.com, was recently asked to promote a soy nut butter in a busy store on a Saturday afternoon. The work required a four-hour round-trip drive to the venue and six hours behind a table promoting the product and offering tastings. The compensation offer? A mere $15 per hour.

“At first I was insulted, but then I realized that they were starting low because they were willing to negotiate,” says Aronson. “By the end of the conversation, we agreed on $400 for the day plus travel expenses. I ended up with a check for $500.” This turned out to average $62.50 per hour, including her driving time.

How did she do that? “I explained that $15 would be fair for a person who just stood there giving tastings, but my value as a registered dietitian extends well beyond that. With a food and nutrition expert supporting the product, the company would be better able to respond to nutrition questions and to position the product in a healthy light.” As someone with media experience, Aronson was also able to provide effective soundbytes for the consumer. “That was worth far more than $15 per hour and he knew it.”

It is also important to note that Aronson was willing to walk away—a necessity in negotiating. So many dietitians are afraid that if they don’t take the offer, they won’t get the job. But that doesn’t help you personally, and it doesn’t help the profession as a whole.

Justify Your Value
Amanda Archibald, RD, of Arch Consulting, suggests that dietitians think about “how much evidence they can provide about their value, worthiness, client list, and basically who they can network with to help them get to their goals.” These are all intangibles that increase your value to the client. Think about the option of having a newly minted stockbroker teach you about stocks vs. having Warren Buffett teach you. The latter would come with a heftier price tag because of his experience and successful track record.

Judy Phillips, MS, RD, LDN, is a consultant to Au Bon Pain (ABP) in Boston. “I justified my fee by my reputation and connections. I was referred to Au Bon Pain by Walter Willett, which gave validity to my worth because ABP is on Walt’s roundtable of food industries, and they value his recommendation. I am also a foodie, half French, with a foodservice background, as well as a nutritionist who has conducted many analyses of foods and diets… Those are what counted more than education, research, and clinical experience.” Phillips leveraged this value into a steady consulting contract with the Boston-based company.

An impressive resume can also help justify your fee. New York nutrition consultant Maye Musk, MS, RD, leverages her Web site as a justification for her rates. “A Web site is a resume in color,” she says. “When I’m booked for a speaking engagement and they aren’t sure about my fee, my Web site convinces.” So be sure that your Web site reflects your professionalism and your latest accomplishments.

Thinking of doing something for free to get your foot in the door? While this can certainly help you build your resume, sometimes this can backfire because companies may balk at paying you in the future. “I am careful about giving away free time as it is not valued as highly,” Phillips cautions.

When to Lower Your Rate
Does lowering your rate mean you’re always selling yourself short? Not at all. Indeed there are some instances where it may make good business sense to do something for less.

Rinata Shiloah, MS, RD, CDN, recently started work at a health club with more than 3,000 members. She has set standard prices but sometimes gives specials to publicize her name throughout the club. “I now give less away but will continue to have specials until my name is well-known there,” Shiloah says. Another instance in which it may make good sense to work for a lower rate is in exchange for a larger amount of business. For example, you may charge a higher hourly rate for a three-hour consulting job than for one that lasts an entire month.

Writing is another good example. When Victoria Shanta-Retelny, RD, LD, first started freelance writing, she didn’t know how to negotiate a fee or feel strongly about her rates—she just wanted the experience. “While I didn’t make a lot with my first job, in return I received some great writing experience. Later, down the road, I could negotiate for more money,” says Shanta-Retelny.

Get It In Writing
When you do enter into an agreement with a company or an organization, be sure both parties are clear on the specifics and get it in writing.

Terry Andersen Girard, MS, RD, LDN, was handed a contract by a long-term care facility that was more than 15 pages long. At first glance, Andersen thought it included some great opportunities for more business, but when she sent it to her lawyer, he highlighted several sentences for her to consider. “He explained that these would ensure that I did the work but that they may not have to pay me. He advised me to draw up my own two- to three-page contract stating my expectations and to have them sign it. He said, ‘If there is one thing I have learned in all my years of lawyering, it is that it all comes down to the contract.’ He was so right.”

As a result, Andersen had them sign the contract that included her own terms of agreement and she received a slightly higher rate. The contract stood the test of time and conflict. It brought her several thousand dollars of revenue and fueled her start-up.

Be Creative With Solutions
Still can’t get the compensation you want? Perhaps you can be creative with payment. One RD I know swaps four seminars per year at a health club for an annual membership. I have traded promotional work for a nonprofit for free attendance at their seminars. See if you can find a compromise with your client in which you feel you are still being compensated in an acceptable way. It is essential that you don’t give away your services for free unless it is in your best interest.

— Kate Geagan, MS, RD, is a cofounder of it nutrition llc.

Subscribe to Today's Dietitian Magazine!