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The Future of PricingEmerging Trends Programme 2019
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.