Blog
Category: Pricing
Blended rates and how they can help with your pricing strategy
Adopting and implementing the right pricing strategy is critical for any business looking to balance profitability, competitiveness, and stay in business. A pricing approach that often gets overlooked in this discussion is blended rates.
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The law of supply and demand doesn’t apply to the pricing of professional services
It’s a foundation principle of economics: Supply and demand determine price. Oversupply will reduce prices. Increased demand will increase prices. However, this fundamental principle – that drives most of the world’s economy – doesn’t apply to professional services!
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Knowing when to fire a client and understanding how to do it
In this blog, we explore when it might be a good time to fire a client and talk through some proactive steps you can take to ensure the process is as smooth as possible.
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Using retainer fee agreements to create client loyalty
Competition for work has never been greater. Every year I feel like the demand side shrinks, the supply side expands, and the cries of ‘more for less’ grow louder. One of the more innovative ways for professionals to create and cultivate client stickiness is to commit to a retainer fee arrangement.
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Implementing a ‘land and expand’ pricing strategy for business growth
In a highly competitive business environment, such as we often find with professional services, it is arguable that an aggressive pricing strategy helps win work and new clients. A ‘land and expand’ pricing strategy could be an option for you to consider to drive business growth and success.
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Understanding the difference between a recurring and reoccurring revenue model
“Recurring revenue” = revenue that is expected to continue on a regular basis with a high-degree of predictability. “Reoccurring revenue” = revenue that is repeatable, but not necessarily on a regular or predictable basis.
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Capped fees – the good, the bad and the ugly
When a client first asks you for a capped fee, you’ll likely not think too much about it. After all what can go wrong? All you need to do is to scope the work, workout the leverage, think about how long it will take you to do the task and then add in a little buffer. But, is this the best way?
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5 reasons you need to unlock the secrets in your data
Every professional services firm collects huge amounts of data about their clients and the industry sectors they operate in each and every day. Few, however, take the time to apply the resources to interpret this raw data and apply the findings to its own business in order to improve the value of the service they’re providing.
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Why you need to segment your client marketing list
At GSJ we believe that by not segmenting your client list to the relevant readership, you’re missing out on a ton of business development opportunities. If you want to rectify this error, you should start by classifying your current client and target client lists.
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Dynamic pricing strategies for professional services
Dynamic pricing adjusts pricing to real-time circumstances around the demand for a service or product. Options include surge pricing and special occasion pricing. Understanding the how, when, what and who, where certain events will create demand, actually gives you a competitive advantage.
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Learning the R.U.L.E.S
Given the intense nature of professional services firms, the concept of “the R.U.L.E.S” seems a fair and equitable profitability measure. But: Are the RULES the most appropriate measurement of a professional services firm’s profit or loss?
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The three noble horsemen of private practice: ‘finders, minders and grinders’
When I first started working in private practice back in the mid-1990s, there were what was then commonly known as the Three Noble Horsemen of private practice: ‘The Finders, The Minders and The Grinders’. And then we introduced the ‘balance scorecard’.
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