It happens thousands of times a year…rate x time. A billing manager reviews project hours, applies a rate card and generates a client invoice…rate x time = fees. Pursuit teams push for higher hourly rates and increased leverage, while clients compare rate cards and proposed hours to market competition. Many project pricing discussions focus more on project inputs than the outcomes expected by the client, and proposed pricing structures are often similar across providers (rate x time, rate x time, etc.). Within this pricing context, using alternatives to traditional time-and-materials pricing may better align economic incentives, clarify engagement value and allow more creativity in the way clients are served. Considering alternative financial arrangements such as quality holdbacks, timeline incentives or value-based pricing should be…
Tagged: Pricing