While most consulting firms (and consultants to consulting firms) criticize the use of discounting, 65% of consulting firms report that they do indeed discount their fees. Even the most profitable firms discount – 49% of firms, with 25% or more firm profit, report that they discount. The average discount level: 11.7%.
When it comes to premium-price firms and what sets them apart, it is not their size, the amount of repeat business they are able to get, or the region of the country in which they are located. As a matter of fact, none of these had an effect on a firm’s ability to charge premium fees. The factors that matter most to premium price firms are how valuable their work will be to the client upon completion, and whether or not the firm can deliver superior results versus the other providers – 36% find this “extremely important”