This document captures our learning on pricing your professional services ,whether you are a freelancer or a multi member professional practise . The learnings captured can be applied by any professional service provider ; from an architect , to a zoologist !

1. Pricing
Professional
Services

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What are your pricing challenges today ?01
Pen them
down
What don’t you have answers for ?02
What would you like to change ?
03
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Pricing is influenced by
The Client Need
The perceived value by
the client
Your needs as an
individual and as a firm

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What clients look for
Identify their primary need and driver
How will the client benefit because of what you do ?
How can this be measured ?
Efficiency
Customisation
Problem solving ( Risk , no precedent )
What you should do

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Do this through conversations
• Listen to what they are saying : their unsaid
needs and challenges
• Ask questions with the intent to
understand/diagnose
• The why behind their stated needs
• What all can be done to meet the need?
• How can they be done ?
• Focus on how you can be of service/value?
• Estimate the Measurable $/ value to be
derived by the solution

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Identify what your needs are
1st Stage 4th Stage3rd Stage2nd Stage
Experience for
self and for
team members
Utilization of
people
Learning
opportunities in
unexplored
areas
Need to
maximize ROI

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Pricing equation
Your Cost
Value to the
client
Price points

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+ve gains of achieving goals 01
02
04
Value to the client
-ve consequences of
letting status quo continue

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Need to follow dynamic pricing rather than one fixed approach depending
on the client needs and his paying capacity and your needs
Pricing Approach

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Pricing Models
Each one has its place. One is not necessarily superior to the other
Paid by the hour Paid a fixed fee Value Pricing

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What if a client asks for the cost break up
Be transparent
Be Non defensive about your hourly
rates/fees
Your billing rate is for the value that you
deliver/bring to the table
• Quality ( Aligned to need)
• Minimal rework
• Reduced Risk of collateral damage if the
output misses the mark
• Opportunity cost
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Pre-requisite :Contracting
Insist on a documented agreement
Have your contract ready ( That way you
have better control )
Ensure who owns the intellectual
property
Ensure the deliverables and time lines
Credit terms, billings and payment
schedule ( % Upfront )
01
02
03
04
05
Step Two
Step Three
Step One
Step Five
Step Four

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How can you increase billing rates /fee
01
02
03
With old/existing clients add an inflation
clause if contracts are multiyear ( 5-7 %)
Charge a differential fee for value
added/complex work (Can do in case
of fixed fee and hourly billed)
Charge higher fees with new client projects

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Delivering what's contracted ( explicit
and implied ) really well
Give them a little more ( Something
they didn’t expect )
Invest in understanding their
organisation/business
Providing insights of value ( Internal
and Market )
Helping them achieve clear goals
How do you build long term client relationships

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E
F
A
B
C
D
F
E
D
C
B
A
They begin to trust you
This starts a virtuous cycle
of developing deeper and
broader skills
Solving tough challenges
A portfolio that backs
your confidence and talk
More complex
challenges to work on
Greater billability
What happens when you build long term client
relationships
G
Refer others in need

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My Guideposts after 20 years in professional
services
• Qualify whom I want to work with ( I do decline some
clients )
• 100 % conversion
• 4/5 client relationships need to be multi year
• Choose distinctiveness over following best practices
• Confidently ask and you shall be given
• You are limited by your capability and conviction

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• Clients come to you and stick with you
because you give and not because you take
from them .
• In the process of giving you get a lot more in
return .
My Guideposts after 20 years in professional
services

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THANK YOU
@aventuspartners
Aventus Partners
Delhi I Kochi I Bangalore I Pune
Contact
Natham House, Chittoor Road,
Kochi-682035
www.aventus.i
n
Sriram@aventus.in