Background

Our client is a boutique professional services firm with a strong reputation for quality. Management places a strong focus on revenue and avoids discounts.

  • The firm’s services are in demand and while profitability enjoyed consistent growth, some senior partners believed it could be much higher.
  • In addition, the firm had lots of client feedback that they were too expensive. And they knew they were losing work because of price.
  • Positive Pricing was briefed to provide an independent assessment of the firm’s pricing and recommend new pricing strategies.

Positive Pricing Approach

Positive Pricing undertook a comprehensive pricing review of the firm. This started with interviews of key executives and partners in the various offices and service lines to understand existing pricing processes, explore challenges and identify opportunities. We also reviewed proposals, client feedback and the firm’s financials.

We then conducted a short survey amongst partners and directors to quantify key issues and identify differences across offices, services and client types.

Key Findings

The key finding from the pricing review was that while the firm clearly occupied a premium position in their market, their pricing behaviour was not aligned. They did not fully appreciate how to price their services as a premium firm, and so they were playing by the wrong rules.

Armed with the evidence from the financial review and the staff survey, we prepared a report with recommendations aimed at:

  • Capturing immediate value by identifying 14 areas where they were undercharging
  • Further increasing their price-setting discretion
  • Justifying why they should be chosen, even if they are more expensive
  • Building the firm’s pricing capability

Through a combination of higher rates in identified areas, value pricing and better project management, realized rates increased by 14 percent in the first 12 months. This was achieved while maintaining high utilization and strengthening client satisfaction.  We assisted the firm to roll-out the recommendations, which included staff training programs and support for localized pricing champions.

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Pricing Review Results

Double digit gains

Realized rates improved 14% within first 12 months

Positive-Pricing-Case-Study

Pricing confidence

Partners confident to justify premium prices

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The Pricing Masterclass provided practical strategies to help us win work, analyse pricing risks, and promote value internally and externally. It presents all sides of the equation: clients, partners, back office, and more. We immediately capitalised on what we learned. Thanks for a fantastic and interactive workshop.

Peter Lane Secor
Director of Strategic Pricing and Project Management
Pepper Hamilton, Boston

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