| Intangible Benefits | What non-quantifiable benefits will the client receive? | Consider reputation boost, knowledge transfer, employee satisfaction improvements, etc. | 10-30% of total project value | Higher for prestigious clients or innovative projects |
| How will this project impact the client's long-term capabilities? | Assess improvements in processes, skills, or strategic positioning | 5-15% of total project value | Higher for transformational projects |
| What networking or future opportunities might this project create? | Consider introductions, market access, or potential for future projects | 5-10% of total project value | Higher for new market entry or high-profile projects |
| Tangible Value | What measurable financial benefits will the client receive? | Calculate ROI, cost savings, revenue increases, etc. | 100-300% of project cost | Higher for cost-cutting or revenue-generating projects |
| How quickly will the client see these benefits? | Assess the timeline for realizing tangible outcomes | N/A | Faster realization may justify higher pricing |
| What risks are being mitigated for the client? | Quantify potential losses or setbacks being avoided | 50-150% of potential loss | Higher for high-risk environments or critical projects |
| Target Price | What is the market rate for similar services? | Research competitor pricing and industry standards | Varies by industry and project scope | Use as a baseline, not a ceiling |
| What is the client's budget range? | Understand the client's financial constraints and expectations | N/A | Balance between client budget and project value |
| How does this price position us in the market? | Consider how pricing affects perception of quality and expertise | N/A | Premium pricing can signal higher value |
| Additional Value (Consultant) | What unique expertise or resources are we bringing? | Identify specialized skills, proprietary tools, or exclusive data | 10-30% premium over standard rates | Higher for niche expertise or unique methodologies |
| How does this project enhance our portfolio or capabilities? | Assess the strategic value of the project for the consulting firm | 5-15% of project value | Higher for projects in emerging fields or with new technologies |
| What efficiencies can we leverage from past experiences? | Consider reusable assets, established processes, or team expertise | 10-20% cost reduction | Can be used to increase margins or offer competitive pricing |
| Additional Value (Client) | What secondary benefits might the client receive? | Identify spillover effects, such as improved vendor relationships or enhanced market knowledge | 10-25% of primary project value | Higher for projects with broad organizational impact |
| How might this project open new opportunities for the client? | Consider potential for new products, markets, or business models | 15-30% of project value | Higher for strategic or innovative projects |
| What internal capabilities will be developed as a by-product? | Assess skills or knowledge transfer that extends beyond the project scope | 5-15% of project value | Higher for projects involving significant client team involvement |
| Potential Overpayment | At what point would the client perceive the price as too high? | Identify the threshold where value perception diminishes | 120-150% of target price | Varies based on client sophistication and project criticality |
| What alternatives does the client have? | Assess in-house options, competitors, or doing nothing | N/A | Fewer alternatives may increase acceptable price range |
| How price-sensitive is this particular client or industry? | Understand the client's historical spending patterns and industry norms | N/A | Less sensitive clients may have higher overpayment thresholds |