In the recently released Wellesley Hills Group and RainToday.com research Fees and Pricing Benchmark Report: Consulting Industry, 2008, we researched the top challenges facing consulting firms regarding setting their fees and pricing their services. The top challenges consulting firms face when it comes to pricing are:
- Uncertainty about what price a particular client will accept
- Pressure not to leave money on the table
- Pressure to compete on price from prospects / clients
Each of these challenges falls under the general category of client value, whereas the next seven challenges mentioned were internal – focused on the firm itself.
Should a firm be able to increase its perceived and real value to clients, then:
- Clients will likely be willing to accept higher fees (though, granted, with each client you may never know the exact fees they will actually be willing to accept).
- The firm will be less concerned with leaving money on the table because it will be more confident in the fees it is charging.
- Clients will pressure the firm’s prices less because they will have confidence in that firm’s ability to deliver additional value.
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