Who is PricingMatters™ designed for?
If you can answer "Yes" to two or more of the following statements, PricingMatters™ might be able to help:
- I work for a professional services firm and am concerned with pricing and profitability.
- My clients are asking about time and fee budgets prior to the commencement of a project.
- I am tired of starting from scratch every time I need to develop a work breakdown and fee estimate for a client.
- It would be nice to have a database of fee estimates and associated work breakdowns that were well received by our clients.
- My clients are becoming dissatisfied with hourly rates and expect more fixed price quoting.
- "Gut feel" pricing leaves me feeling exposed.
- My instinct tells me that my firm's projects could be more profitable.
- I don't have enough information to tell me which areas of my business could be more profitable.
- Some of my firm's partners don't realise how their discounting affects profitability.
What is PricingMatters™?
PricingMatters™ is a web-based application designed to allow professional services organisations to quickly and easily scope out projects or matters and model their price structures, helping to see how profitable the work is while structuring the pricing in a way that is acceptable to the client.
Why was PricingMatters™ developed?
PricingMatters™ was developed because pricing matters to our clients.
Clients are becoming more and more demanding of their service providers, expecting discounts and seeking fee estimates prior to the commencement of a project. Responding to these demands without appropriate modeling tools can result in estimates and fee structures that are way off the mark and in some situations highly unprofitable.
What are the benefits of PricingMatters™?
PricingMatters™ helps professional services organisations deliver on the following strategies:
- Improved profit through increased margins;
- Improved profit through increased team leverage;
- Reduced risks associated with fixed fee arrangements; and
- Increased client retention through better expectation management with regard to fees.
How does PricingMatters™ work?
PricingMatters™ allows modeling of work breakdown, price, cost and profitability for any given project or client relationship.
Additionally, if the client is seeking a deviation from standard hourly rates, PricingMatters™ helps to:
- Facilitate the pricing of services knowing that benchmark profitability, and/or other KPIs, will be met;
- Facilitate pricing structures that align client interests with those of the firm; and
- Manage the risk associated with alternative pricing structures.
Some examples of the type of alternative pricing structures that PricingMatters™ can model are (but by no means limited to):
- Flat percentage discount across all operatives;
- Blended rates;
- Volume based discount;
- Stepped discount;
- Value based discount;
- Event based costing;
- Discount spread across operative bands;
- Fixed fee (for an entire project or portions of a project); and
- Fixed fee structures that span several years.
PricingMatters™ also allows you to model the effect of the selling process and other unrecoverable costs on the profitability of the project.
PricingMatters™ in the news
Lawyers Weekly, 25 November 2005: Quality Time (by Kellie Harpley)
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