A good reminder to not price yourself under your value.

From Duct Tape Marketing we get an article reminding us that when your value exceeds your cost, you are leaving money on the table.  It’s a great summary of a common phenomenon.  Any single pricing model has points of failure.  And the great thing about consulting (whether traditional management consulting or more modern services consulting) we have the ability to go any many directions depending on the situation.

Just this year alone projects I work on have been paid:

  • Hourly rate plus expenses
  • Fixed fee (negotiated)
  • Fixed fee (standardized for a product)
  • Success fee
  • Fixed + Success fee
  • Included as part of another service

And yes, all of these from a single consulting organization.  It all comes down to ensuring that you have alignment in your services with the value you create.  Save a client $10 million annually and a $200k fee (or even $800k!) doesn’t seem so bad.

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