This is our second episode on pricing. If you missed the first episode, check out Pricing: Don't trash the time sheet...Yet.
This episode focuses on fixed pricing - where it makes sense in your firm, and how to go about creating a fixed price. Probably no surprises, but it does start with a time sheet. We cover off on cost accounting of accounting and bookkeeping with simple time motion studies and then simply applying an appropriate rate for the transaction, the team meetings, the client meetings and even the training required. It's relatively simple, but a great place to start. To be successful with fixed pricing, this cost accounting is critical. Equally important is the discovery process that takes place prior to quoting and so we spend some time discussing how to develop a robust discovery process. Fixed pricing can easily fail without this robust discovery, and you're set up to fail from the outset, so make sure you spend time on the front end getting to know as much as possible about the business - and don't worry you can realize that time in your pricing model.
As we've said, we're not experts in pricing, but we've made enough mistakes along the way, and have built confidence in the methodology, but we're always interested in your feedback. And if you'd like any consulting help on the pricing front, please get in touch.
Penny Breslin - LinkedIn | @PennyB57
Damien Greathead - LinkedIn | @Damien_GH