Do a search for cost plus pricing and you’ll get 75 million hits. The vast majority of these will state that cost plus pricing is a terrible pricing model and to avoid it like the plague. These writers assume the worst about companies’ ability and interest in doing the hard work required to price effectively. … Continue reading What Critics Have Wrong about Cost Plus Pricing
You’ve come to realize that not all clients or prospective clients desire, need, or want the same value, so your firm offers three options: Good, Better, Best. (Or Platinum, Gold, Silver) What if Good, Better, Best shortchanges your clients—and your company’s bottom line? I started thinking about the harm of Good, Better, Best during a … Continue reading Good Better Best is Not Value Based Pricing
I read a post about how personality assessments create boxes around people. The test or assessment says “I am this or that”—and therefore I must conform to it. Whether months or years later, people continue to identify in whatever way the assessment told them to. The writer, Mark J. Silverman, made the point that any … Continue reading How Will You Break Out of Your Box?
I’ve been seeing a sudden increase is articles, blogs, and podcasts urging every business owner and associate to find their why. If you’re deeply focused on profit and revenue, does this make sense? Your “why” may get you out of bed every morning but it is unlikely to be the reason people become your customers … Continue reading It’s the WHAT Not the Why that Makes Money
Ed and Diane built and built and built their tax practice until they had more than 2500 tax return clients every year. Talking to them in late May, I learned they were exhausted and ready to get out of the business. Why were they exhausted and why did they want to sell their firm? Because … Continue reading Have You Inadvertently Created a Rock-Hard Revenue Ceiling?
If you’re not familiar with test and learn, you’re in good company. Most Owners of professional services firms aren’t acquainted with this smart concept that reduces the risk of implementing new ideas. Trivers Consulting Group has been implementing a version of it with clients for years, although only recently did we become familiar with the … Continue reading Are You Using Test and Learn to Spur Growth?
Ed W. dropped his jaw when his financial advisor told him how much money he’d need to ensure the retirement life he and his wife had imagined for the past twenty years. Then he brightened because he knew his accounting firm was solid. The sale of the firm would contribute the bulk of the money … Continue reading Is Your Professional Services Firm Viable or “Buy-able”?
Corporate training firm founder and owner Elaine felt frustrated that she could never get her firm’s profit to grow faster than around 3% per year. When she and I first looked at her Profit & Loss statements for the past 3 years, nothing jumped out as a red flag. Revenue, Expenses, Profit all marched neatly … Continue reading How Are You Covering the Costs of Hourly Billing?
When he turned 10 months old, my Bernese Mountain Dog Gabe became completely impulsive and difficult to control on a leash. He loves dogs and people and he wanted to exuberantly greet everyone who came near. He’s also over 100 pounds and is very strong. My response for 3 years was to work harder and … Continue reading How Much Could You Gain by Letting Go?
Adopting Value Based Pricing, which is the only ethical pricing model for services firms, will lead to a complete makeover of the company’s systems and thought processes. It re-shapes everything you’ve been certain about. That’s a great benefit for growth-minded firms and their clients. Certainty can become a trap. Conditions change, and you must be … Continue reading Are You Trapped By Certainty about Your Pricing Model?