What to charge.
WHAT PRICING MODELS EXIST
Hourly or daily rates Fixed fees per engagement Retainers for ongoing availability Value-based fees Contingent or success fees, where permitted Blended arrangements
WHAT HOURLY PRICING DOES
Transfers inefficiency risk to the client and rewards time rather than outcome.
WHY CLIENTS DISLIKE IT
The cost is unknown until it arrives.
WHAT FIXED FEES DO
Give certainty, and transfer the risk to you.
WHAT THEY REQUIRE
Accurate scoping and estimating.
WHY
An underestimated fixed fee is absorbed entirely.
WHAT TO ESTABLISH BEFORE QUOTING FIXED
What the work actually takes, from records of similar work.
WHAT TO SPECIFY
Precisely what is included and excluded.
WHY
Scope creep on fixed fees is the commonest source of loss.
WHAT RETAINERS PROVIDE
Predictable revenue and a continuing relationship.
WHAT THEY REQUIRE
Defined limits on what is included.
WHY
Unlimited retainers are consumed until they are unprofitable.
WHAT TO ESTABLISH
What happens beyond the retainer.
WHAT DETERMINES RATE
The value of the outcome to the client Scarcity of the expertise What comparable firms charge Your own cost structure
WHY VALUE FIRST
Fees justified only by cost cannot rise.
WHAT TO CALCULATE
The rate required to cover cost, overheads and margin at realistic utilisation.
WHY AT REALISTIC UTILISATION
Rates calculated on full occupancy do not cover costs.
WHAT TO REVIEW
Rates annually, and fixed fees against actual time.
