Primary Pricing Strategy
Providing comprehensive services at a reasonable cost is C. A. Services’ foundation to continued success. While initial scope definition services may be best handled on a unit rate basis, it is preferred that most services be provided on a lump sum, value-based fee structure. As soon as possible, after scope definition, a lump sum fee will be offered to each client for the services proposed. The following are some of the many advantages to lump sum fees:
- There is a cap on the client’s investment. The total cost is clearly defined with no surprises at the end of the project
- There is no meter running. Clients don’t have to worry each time help is requested because all required communications and coordination activities are included.
- Client personnel are free to use the services and assistance without the need to go to someone for budgetary approval. Getting approval every time someone communicates with a consultant makes personnel more resistant to sharing their views, and at best, delays the flow of important information.
- Billing is simplified and client tracking of expenses and hours expended is not required. Progress payments and payment schedules are agreed to in the beginning and are invoiced as simple one line item lump sum payments.
- Unanticipated work that is required to complete the agreed upon services will be to C. A. Services account. If the client finds legitimate related work, he can request it without the worry of additional costs. This keeps the responsibility of properly estimating the costs of the services where it should be, with C. A. Services.
- Providing resources as necessary is the responsibility of C. A. Services and will be adjusted as required to deliver the quality product agreed to.
- Lump sum pricing is the most uncomplicated way to work together. There will never be a debate about what is billable time (e.g., travel, report writing, etc.) or what should be done on-site or off-site.
- C. A. Services’ quality approach and its commitment to providing what it takes to build a strong reputation of providing superior services at reasonable prices makes lump sum fees an exceptional value to its clients.
