Marketing & Sales · Pricing Strategy

Pricing in Services — Why the Hourly Rate Is Hurting You

MBA-band pricing-transformation lab. Vega Asociados (28-lawyer Costarian law firm) has watched realisation fall from 92% to 78% as best clients underpay and worst clients overpay.

3 rounds Executive English, Español

Preview

About this simulation

MBA-band pricing-transformation lab. Vega Asociados (28-lawyer Costarian law firm) has watched realisation fall from 92% to 78% as best clients underpay and worst clients overpay.

As the Costa Consulting Partners pricing team, diagnose the four pathologies of the hourly rate, design a productised pricing portfolio (productised SKUs, subscription retainers, hybrid base-plus-success) with scope discipline and parallel partner-comp realignment, and defend the recommendation to the Executive Committee with a conservatively-realistic +8 to +12 pp realisation recovery commitment.

Who it is for

An advanced simulation for participants used to working with the main frameworks and trade-offs of the subject, designed for executive education and experienced professionals.

How a session runs

  1. The instructor creates a session from the Eureka dashboard and invites the participants.
  2. Participants play 3 rounds. In each one they submit their decisions and the simulation calculates the results.
  3. The simulation can be run in English, Español.
  4. The instructor follows each participant's progress and results from the dashboard, and uses the class results for the debrief.

Decisions participants make

The decisions participants make during the simulation:

  • Segment A — Routine compliance and contract work (60% of engagements, 25% of revenue)
  • Segment B — M&A and complex litigation (15% of engagements, 45% of revenue)
  • Segment C — Ongoing client relationships (25% of engagements, 30% of revenue)
  • How will you frame the diagnosis to the Executive Committee?
  • Productised SKU catalogue size at launch
  • Subscription retainer tiers
  • Contingent / outcome revenue cap (% of total)
  • Build scope discipline (scope-in, scope-out, change-order menu, walk-away criteria)
  • Realign partner compensation in parallel (origination + practice + firm contribution)
  • Realisation recovery commitment (percentage points by month 18)

What participants track

What participants follow on screen as the rounds go by:

  • Realisation Recovery Trajectory

Subjects covered

Designed for courses in Pricing Strategy.

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