The Future of Pricing

Despite their reputation for charging exorbitant fees, profitability has always been a challenge for consulting firms: The pyramid model means that small changes in utilisation can have a dramatic impact, for better and for worse. How firms price their services is therefore critically important—and that’s becoming harder to do. Demand for digital transformation and cybersecurity means that fees for this kind of work can now often be higher than those for traditional strategy work (many clients think the latter is now a commodity). Outcome-based pricing, which theoretically could provide a way through difficult discussions with clients about fees, is growing only very slowly. There’s an appetite to do more among both clients and consultants, but huge problems remain when it comes to making it work in practice. This report will explore how firms’ pricing strategies will need to evolve in the future to keep pace with a changing market.

Section 1: How do clients decide what they're willing to pay?

Section 2: How will pricing practices change over the next five years?

Section 3: How do you know what price you can command?

Section 4: Is experimentation the answer?

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Burying the billable hour

Tim Williams, Ignition Consulting Group
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The role of risk in setting prices

Per Sjöfors, Atenga Insights Group
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Information asymmetry with CB Motors

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Putting a price on innovation

Pankaj Gupta, Synechron
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Why clients choose to buy consulting services

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Transparency and the procurement process

Larry Raff, KPMG
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Clients’ scepticism about whether firms justify their rates

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The monetisation of value

Dr. Georg Tacke, Simon-Kucher & Partners
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Creating your own market with the Curious Duke Art Gallery

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Pricing insights and analysis

Carol Lemmens, Arup
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The impact of discounts on buying decisions

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Exploring alternative pricing models

Dr. Tim J. Smith, Wiglaf Pricing
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