How can an employer know if investing in a business consultant or motivational speaker will actually pay off?

Consultant fees are wide-ranging — anywhere from about $150 to $5,000 an hour. And some motivational speakers charge thousands of dollars for one conference.

“It’s all about what kind of return you’re going to get,” said consultant Ron Price, who has helped triple a company’s profits within two years.

Not all business owner /consultant relationships end with such good results, though.

Toby Ashley, president of Ashley Heating & Air Conditioning, Inc., has worked with consultants from Seattle and Chicago who were costly and failed to bring enough positive results, he said.

But a year ago, he hired local consultant Dan Long of Sandbox Group.

“We were looking at about a 30 percent decrease in sales, and Dan was able to help us turn that around,” he said. “He’s a good communicator between me and my management team, and he also helps with managing operations.… His modest fees that he charges allowed my company to not only survive these last 4 1/2 years … but actually thrive and grow.”

With the Treasure Valley’s low cost of living and the smaller size of businesses, local consultants charge about half of what big-city consultants charge, said Price, founder and president of Price Associates.

That doesn’t mean choosing a consultant based on cheap rates is the best choice for every business.

“How much (a company) can afford to pay has a big impact on the kind quality of consultant they’re getting,” Price said.

Pricing depends on a variety of factors, Joan Endicott, president of Endicott Training & Consulting, said.

“Everything we do is ‘customized’ to what each client wants/needs,” she said. “I do provide such a wide variety of services —  a keynote, a coaching session, a three-day leadership retreat, repeat customer care training, etc. — which makes it impossible to offer an idea without knowing the actual scenario.”

Some consultants don’t charge prospective clients for the first conversation — providing a good opportunity to decide if the consultant is a good fit for your company.

“I never charge anything until we have a goal,” Price said.

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Valley advisers bring knowledge of local climate

Idaho is still fairly new in the business consulting industry, Price said.

“You don’t have as many strategic business advisers in Idaho as you do in other parts of the country.”

But for Ashley’s business, a local consultant brought more success than out-of-area experts because Long had more knowledge about the Treasure Valley market.

“The Boise market is really unique, especially in the last four to five years,” Ashley said. “We have some challenges that other parts of the country haven’t fully experienced.”

Each business has different needs and goals. When choosing a consultant, keep three things in mind, Price said:

• What is their experience?

• What is their area of expertise, and how does that fit with what my business needs?

• Do I have chemistry with them?

Another factor to keep in mind when hiring a consultant is how much time they’ll be able to spend with your company in person, rather than just over the phone.

“There’s no question that spending some time face to face is important,” Price said.

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Why do businesses turn to consultants?

When businesses do hire Price, it’s usually because they need help dealing with people, creating a strategy or improving performance, he said.

“They’re not sure how the marketplace is changing or how they should respond to it, or they need a set of outside eyes,” Price said.

Many business owners Long works with have exhausted their intellectual resources and feel like they’ve done all they can do, he said.

“I just help them get unstuck,” he said. “They’re stuck in a rut; they’re doing the same thing as always and getting the same results. … Many times I help them develop the courage to move forward with the answer they already have.”

Other times, a company’s staff needs a motivational boost because of the changes in the economy and workplace.

“Joan’s presentations are very poignant and relevant for the turbulent economic times we are facing,” Ray Millar, an administrator for Lifeways Inc., said. “Several of our staff related that Joan was able to help them better understand their fear of uncertainty and change.”

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Motivational speakers

Last month, several local businesses sponsored a breakfast featuring motivational speaker Viliami Tuivai, also known as Coach V.

“It gives people hope; it gives you a chance to really think about your dreams and about setting goals,” said Georgia Bowman, president of the Nampa Chamber of Commerce, which arranged the event. “I would say that there’s a good percent of people that took at least some little message and are going to apply it.”

Find creative ways to afford a motivational speaker, Bowman said. For example, charge a ticket fee or team up with other businesses to sponsor the event.

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