The Pricing Model Decision Table

Every way of pricing agency work fits one kind of firm and breaks in one predictable way, and the fix is always clearer positioning, not a different price model.

Chart: The Pricing Model Decision Table. Every way of pricing agency work fits one kind of firm and breaks in one predictable way, and the fix is always clearer positioning, not a...
Save this chart Download

The mechanism

The chart is a table of six pricing models - hourly, fixed project, retainer, productized, value-based, and performance - with columns for who each fits, its built-in risk, and the positioning it needs. Reading down, the risks get milder and the positioning required gets stronger, until value-based and performance demand that the buyer already sees you as the obvious specialist. A highlighted row and note warn that most agencies jump to these models before that groundwork is in place, which is why it keeps failing. The pricing model isn't the lever; how clearly you're positioned is.

Part of Productization. How you package and price the work.