Providing options is an incredibly powerful way to differentiate your proposals from the competition. Your competitors likely won't offer...

A business that runs on T&Ms can only significantly scale revenue by increasing headcount, increasing hourly rates, pushing people beyond...

Fixed monthly fees are an excellent alternative to T&Ms. Invoicing them monthly is ok. Invoicing them monthly, due at the beginning of...

Assessing your services pricing against current and go-forward levels of efforts and rates helps avoid historical bias common to all of...

To new readers- I write these for my own edification, so that I can serve clients better. Not investment advice. Calendar Q2 earnings...

We are 25% of the way through 100 thoughts and I'm going to pause these thoughts for a week. I would love to hear your feedback on what...

There are times where you have to face the reality that you are heavily underpricing your services or product. While it's important to...

It's important that your Change Notification forms make clear 1) whether or when changes are to be implemented, and 2) what the buyer's...

Construct your billing structure with a mind towards what that first customer invoice will look like. Will it have loads of hours per...

Options highlight valuable, high-margin offerings that can help guarantee the results your prospect seeks to achieve. Use them to...

Compounding 5% annual inflation on long-term projects means you believe inflation 3 years from now will be 2-3x higher than it was 3...

Currency exchange rates are completely unpredictable. Don't tell me about the George Soros GBP trade; that was 30 years ago. Manage Forex...

Make more of your shorter projects non-cancelable AND fixed price AND paid in advance. Why all 3? A project paid in advance but...

It's good business to proactively offer a discount for full payment upfront, before work even begins, on shorter term / appropriate...

When benchmarking services pricing, break down the components as much as possible (personnel rates, level of effort assumptions, unit...

Discounting is riskier than "risk sharing". A 5% rate or bottom line discount comes right out of your margin with no upside potential....

A milestone based payment schedule is a risk sharing contract. Most milestones represent a future forecast subject to forces beyond the...

Here's a measure of whether your pricing tool is user friendly. It's 4:30pm on a Friday. The CEO needs a couple final things changed. Can...

Technology products have a cost rate too, and you should model it into your pricing gross profit estimates if technology is a material...

Annual review of pricing is the bare minimum for normal times, and doesn't cut it when inflation is high. When inflation is both high and...

If you insist on charging T&M for short projects, at least require a prepay upfront that's quickly replenished. Otherwise, depending on...

Cash neutral isn't good enough- be cash positive. When your customer cancels a project because they failed to raise money, or didn't plan...

I've written about the "Customer in the Room" before. When it comes to reviewing your profitability estimates on new deals, picture the...

Benchmarking is so much more than what your competitors' pricing rates are. How does your cost methodology compare? How do your unit...