Services / Pricing & Profitability
Pricing & Profitability. Price with evidence. Know where you make money.
Pricing is often the fastest route to better margins, and the least examined. We combine market benchmarks with a clear understanding of your costs, so that prices reflect the value you deliver and every client, product and service line earns its place.
When this helps
- Prices have not been reviewed in more than a year
- Some clients or products feel busy but unprofitable
- Proposals are priced differently by different people
- Cost increases are eroding margins
What is included
The scope is agreed around the decisions in front of you. A typical engagement draws on the following.
Market benchmarking
Comparison of your pricing against relevant competitors and alternatives.
Unit economics
Contribution margin by client, product, service line and channel.
Pricing architecture
Tiers, packages and rate cards that are simple to sell and to administer.
Proposal pricing
Pricing models and templates for bespoke proposals and engagements.
Profitability analysis
A clear view of where profit is made and where it is lost.
Implementation support
Communicating price changes to clients and tracking the results.
Deliverables
- Pricing benchmark report
- Project
- Profitability analysis by segment
- Project
- Pricing model and rate card
- Project
- Proposal pricing template
- Project
How it works
A clear sequence, so that you see value early and nothing is built that your team cannot own.
Analyse
Establish true costs and margins by client, product and service.
Benchmark
Compare your pricing and packaging with the market.
Design
Develop the pricing architecture and test its financial impact.
Implement
Support the rollout and measure the effect on margin.
Client example
Pricing strategy and proposal support for an executive coaching and leadership development firm, as part of an ongoing fractional CFO partnership.Andrés Tapia Strategy Group
Questions
Will raising prices lose clients?
The analysis shows where prices can move with least risk, and where value should be communicated first. Changes are tested before they are rolled out.
Do you work with service businesses as well as products?
Yes. Much of our pricing work is with professional services firms, where time, scope and value must be priced carefully.
How long does a pricing review take?
Typically four to six weeks, depending on the number of products or service lines.
Other services
Most clients combine two or more services as their needs develop.
Discuss pricing & profitability. Thirty minutes, without obligation.
Tell us where the business is headed and what stands in the way. Or write directly to alberto.salas@blackbearcorp.com.
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