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Engagement & Pricing Models

This page documents how we structure and price engagements.

Engagement Models​

Hourly Consulting​

Description: Time-based consulting at standard hourly rates.

Best for:

  • Ad-hoc advisory needs
  • Short-term questions or reviews
  • Flexible, ongoing guidance
  • Situations where scope is unclear

How it works:

  • Work is billed per hour at agreed rates
  • Hours are tracked and reported transparently
  • No commitment to specific outcomes
  • Scope adjusts as needs become clear

Client expectations to set:

  • No guaranteed deliverables — guidance is provided, not outputs
  • Cost varies with actual time spent
  • Estimates are guidance, not commitments

Fixed-Scope Projects​

Description: Defined deliverables for a defined price.

Best for:

  • Clear, well-defined requirements
  • Specific deliverables with measurable completion
  • Clients who need cost certainty
  • Projects with natural boundaries

How it works:

  • Scope is documented precisely before starting
  • Price is fixed for that scope
  • Changes require formal scope change process
  • Deliverables are defined and acceptance criteria set

Client expectations to set:

  • Scope must be defined before pricing
  • Changes outside scope require new agreement
  • Scope definition takes effort and investment
  • Faster is not necessarily possible

Retainer-Based Advisory​

Description: Ongoing access to advisory services for a recurring fee.

Best for:

  • Clients who need regular guidance
  • Long-term relationships with ongoing needs
  • Strategic advisory relationships
  • Clients who value availability

How it works:

  • Monthly or quarterly retainer fee
  • Agreed hours or availability included
  • Regular check-ins and access
  • Does not roll over unused hours

Client expectations to set:

  • Retainer is for advisory access, not operational support
  • Does not include project work without separate agreement
  • Availability is bounded, not unlimited
  • Not a substitute for internal capability

Pricing Considerations​

Factors That Affect Pricing​

FactorImpact
ComplexityMore complex work requires more senior resources and time
UrgencyRush work may require premium rates or may not be possible
Scope clarityUndefined scope requires more discovery and flexibility
Client readinessUnprepared clients require more effort to get to productive work
PlatformSome platforms require more specialized expertise
RiskHigher-risk situations require more careful work

How to Discuss Pricing​

When asked for a price:

"Pricing depends on scope and complexity. Let me understand more about what you need so I can give you an accurate picture. For context, our rates for [type of work] typically start at [range]."

When scope is unclear:

"I can't price what isn't defined. Let's start with a discovery phase to clarify requirements, and then we can price the implementation with accuracy."

When budget is constrained:

"I understand the budget constraint. Let's look at what scope is realistic within that budget. It's better to do a smaller scope well than a larger scope poorly."

When asked for discounts:

"Our rates reflect the quality and expertise we provide. We don't discount rates — if budget is a constraint, we adjust scope instead."

What Pricing Does Not Include​

Be explicit about exclusions:

  • Third-party costs: Hosting, software (if any), external services
  • Client internal costs: Staff time, training time, infrastructure
  • Ongoing operations: Post-engagement support, maintenance
  • Scope changes: Work outside the defined scope
  • Travel expenses: If applicable, billed separately

Example Statement​

"This quote covers our consulting services only. It does not include hosting costs, any third-party services, your internal team's time, or ongoing support after the engagement. Those are your responsibility to budget separately."

Scope Changes​

How to Handle Scope Change Requests​

  1. Acknowledge the request — "I understand you want to add [X]"
  2. Explain the impact — "That would expand the scope beyond what we agreed"
  3. Present options — "We can either add it with a scope change, or defer it to a future phase"
  4. Document everything — Written scope changes only

Language to Use​

"That's a great idea, but it's outside our current scope. Let me document what it would involve, and we can discuss whether to add it now with a scope change or plan it for a later phase."

Language to Avoid​

  • "Sure, we can add that" (without scope change process)
  • "I'll fit it in" (implies no additional cost/time)
  • "That's close enough to what we agreed" (scope creep)

Uncertainty and Estimates​

Handling Uncertainty​

When you cannot give a precise price:

"I can give you an estimate, but I want to be clear: it's based on assumptions that need validation. The actual price could vary based on what we discover. If you need a fixed price, we should invest in a discovery phase first."

Communicating Ranges​

"Based on what I know now, this type of work typically ranges from [X] to [Y]. That range exists because complexity varies. I'll be able to narrow it after we understand your specific situation better."

What Estimates Are Not​

  • Not commitments
  • Not caps
  • Not guarantees
  • Not valid indefinitely

Always document that estimates are estimates, not quotations.