Viewing entries tagged
Pricing Council

What You Should Know About Pricing Waterfalls, Cliffs, and Fences

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What You Should Know About Pricing Waterfalls, Cliffs, and Fences

Has your firm ever run into a pricing cliff, cascaded off a pricing waterfall, or put up a pricing fence?  Chances are, no.  That's because pricing in most professional firms like agencies is an oversimplified afterthought that consists of adding up your costs and calling it a price.  But in client organizations, pricing is a core competency -- separate from finance -- that navigates through the minefields of pricing psychology to optimize profit margins for their company.

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Why Your Firm Has An Incomplete Business Model

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Why Your Firm Has An Incomplete Business Model

If you’re like most agencies and other professional firms, you’re likely missing a critical component in the model upon which you have built your business.  Here's why having a cost structure is not the same as having a revenue model.

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Costing Is A Science, But Pricing Is An Art

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Costing Is A Science, But Pricing Is An Art

Knowing the costs of serving your clients is important, but it’s not the same thing as knowing how to price your services. Costing is objective and tactical; pricing is subjective and strategic. Costing uses formulas; pricing requires judgment.

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When It Comes to Agency Compensation, There's No Right Way To Do The Wrong Thing

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When It Comes to Agency Compensation, There's No Right Way To Do The Wrong Thing

If you really want to get paid what your agency is worth, you must first leave that state of denial in which so many agencies find themselves. Sigmund Freud described denial as “knowing-but-not-knowing” — a state of rational apprehension that does not result in appropriate action.”  Steven Covey described this phenomenon in an even more powerful way:  “To know and not do is really not to know.”  Medicine provides some other potent examples of how “knowing” doesn’t necessarily result in “acting," and how that relates to changing your pricing paradigm.

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How To Sell Your Value

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How To Sell Your Value

As agencies become more and more convinced that they should be selling their services based on value instead of costs, they need to learn a new set of skills to help sell the concept of value and get a better price for what they do.

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Agency Pricing As A Tool Of Differentiation

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Agency Pricing As A Tool Of Differentiation

Imagine three agencies presenting to a prospective client.  The client has provided all three agencies with a list of guidelines for the presentation, which includes explicit instructions to outline the agency’s proposed compensation approach, including hourly rates, expected hours, and staffing plans.

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