5
The pricing lever
Strategy 1 â increase your prices
Strategy 3 â work smarter not harder
Strategy 4 â cut overheads, reduce the cost base
Strategy 5 â cut prices, win more work
In this chapter we are going to examine some of the options that are open to a firm that wants to increase its profits. Most service firms have a relatively simple business model which involves employing staff, housing them, selling their time (either by the hour or using fixed or project-based fees), then accounting for and billing that.
I will look at the options available to a firm that wants to increase profits, which include increasing the prices charged; working harder or increasing utilisation; ...
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