Module

Pricing strategy for professional service firms

Professional services firm’s pricing must reflect and reinforce its positioning. Deep expertise just like an exceptional quality should never be priced in a way that contradicts buyers’ expectations.

Profitability is impacted by decisions made by team members involved in setting prices. Firms that take pricing seriously often see an increase in their profits.

Pricing strategy module

The price tag on your service offerings either supports or hinders your firm’s positioning. But this isn’t as simple as solving the supply—demand equation.

The way you price your offers, proposals and quotations directly impacts your bottom line. It isn’t about the amount stated on the invoice — it’s the process behind the curtain that can make or break your firm’s profitability.

Often one of the most commmon issues professional services firms face is a combination of constant underpricing and frequent overdelivering. A well-thought-out pricing strategy can help with alleviating this profit-shrinker.

Our approach to pricing is based on the SCP model that seeks alignment between profit, value and executives involved. People who make pricing decisions must be aware of their role’s biases, understand the cost-value ratio of their offerings, and be clear about your firm’s lines in the sand.

Buyers of professional & business services want to be sure the value they’re getting from your firm exceeds their costs — not limited to money. Your firm has to deliver on the promise, thus have the right people whose work matches the price tag. Higher prices do not necessarily guarantee larger profits. There are many components that impact this such as scope management, overdelivering, workflow methods, timekeeping and utilization rate.

This module is like chocolate to strawberry for the Service offerings module — both are good on their own but better together.

Here is what you can expect from this module:

  • How to safely deviate from fixed fees?
  • When is the right opportunity to charge more?
  • When is the time for concessions, and when to push back?
  • How to charge for value and thinking?
  • Which workflow methodology better complements your pricing?
  • Should you publicly declare your fees and why?
  • When’s the right time to raise prices and how to go about it?
  • What traditional components shouldn’t go into price calculations?
  • Mitigating risks and knowing the consequences.
  • How to attain alignment between profits, value and people involved.

Connect with us to develop a pricing strategy for your firm

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