The offer is fixed price. The delivery still starts with a blank page.

Packaging a service into a fixed-price offer moves cost risk onto the seller. Most firms take on the risk without doing the work that makes it safe.

By Steve 5 min read
Abstract bridge artwork for The offer is fixed price. The delivery still starts with a blank page.

A professional services firm packages its work into three named offers with published prices. The pitch gets shorter, the win rate improves, buyers stop asking for hourly rates. Then someone runs the numbers by engagement and finds gross margin ranging from the mid-forties to almost nothing on the same offer, sold at the same price, delivered in the same quarter. Nothing has gone wrong with the pricing. What has happened is that the firm productised the sale and left delivery exactly as it was. A fixed price is a transfer…

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