Value Based Pricing
Pricing has the greatest effect on your firm’s profit. Nothing else comes close, except perhaps having the right client selection.
Reducing your fixed or variable expenses, increasing your turnover, all which might be good, will still not affect your profit as much as your pricing does.
For far too long, professional services firms have believed they sell their time (in 6 minute increments) but your clients do not buy your time so you have to stop selling something your clients don't buy.
As a practicing lawyer I was well placed to experience, first hand, both the benefits but also the drawbacks of firms pricing their services solely by reference to time.
For over a decade now I have been urging professional firms to not only stop billing their services by time but also to burn their timesheets. I work with professional firms and their clients, assisting them with both a mindset change, and the practical implementation of moving towards value based pricing to become Firms of the Future instead of firms of the past. Most of the work I undertake in this area I do with the assistance of my colleagues Liz Harris and David Wells and together we formed the Innovim Group in 2017 where we help professionals transform their pricing to transform their firm