Blog
Category: Pricing
Are discounts negatively impacting your profit margins?
Discounting is addictive and can easily become your default pricing strategy, rather than a strategic choice. Once discounting becomes your default pricing strategy, you’ll notice that they can quickly eat away at your profit margins, undermine your brand value and set damaging expectations with clients.
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Your hourly rate is set by the market, not your finance team!
Hourly rates are meaningless: The market decides what you are worth! Finance can give you a compass, but it’s the client, the competition and your own positioning that ultimately sets the price you can charge.
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A guide to moving from discounts to fixed fees
If you’re offering strategic discounts to all your clients, then they are no longer strategic: you’re simply giving money away. Worse, you’re undermining your brand, both personal and firm.
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Subscription based legal services; a modern approach to pricing
An overview of the subscription-based model for the provision of legal services. While accepting that not every legal matter is suited to a subscription model, many essential services can be bundled into ongoing, value-driven subscription packages.
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Why you should niche: the power of specialising
While it is always nice to hang out with the high rolling “full service” firms; today, if you want a chance of maximizing your profit opportunities, it is a far better strategy to market yourself as a niche practice.
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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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