Stuart Dodds was delighted to be a guest on the Impact Pricing Podcast with host, Mark Stiving.

The podcast (28 mins) covers:

  • Why professional services firm should hire pricing experts
  • The impact pricing has on the bottom-line
  • How to go beyond the hourly rate
  • How professional services can be smarter about their pricing

Key Takeaways

  • Don’t negotiate at fives. For every 1% additional discount you’re giving your client in a professional services firm, you’re typically taking about 3% to 4% off your existing margin. So if you’re giving 5% to 10%, you’ve just reduced your potential margin by anywhere between 15 – 20%. Just because you wanted a round number.
  • The legal sector has embraced the concept of having pricing professionals within their own organizations, because they see the value of it.
  • We’ve seen a huge shift of professionals willing to sit down and say to clients ‘I think it’s this option, but I’m not sure so let’s explore this a bit more.’ Then find the pricing mechanism that works in this situation.
  • One of the things we’ve seen work exceptionally well  is changing the nature of the conversation to say, whatever type of professional service we provide, we need to add value for our clients. How can we help improve their revenues? How can we help decrease our costs? How can we mitigate their risks? How can we actually build their brand or reputation? How can we improve their cash flow?

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