Why should you consider value-based pricing as a remuneration approach?
Here are three core reasons why it matters to you:
- Alignment of incentives: When the costing is based on the value an agency creates for the client, the incentives are aligned. The consultant is motivated to deliver the best possible results for the client to maximise their own earnings.
- Focus on outcomes: Value-based pricing forces the agency to focus on the outcomes that are most important to the client. This ensures that the consultant is not simply wasting the client's time and money.
- Transparency: Value-based pricing is more transparent than time-based pricing. The client knows exactly how much they will pay and what value they will receive in return.
Our consultative approach at MCI goes beyond mere consulting. “When I talk to customers, we are sitting together in the same boat. We have the same objective to reach a specific target. If you work that way, then success comes on its own,” explains Andreas Laube, MD of MCI Germany.
“If consultation is not part of the process, I would have a different mindset, the client would have a different mindset, there would be less teamwork, less co-creation. With all of MCI’s experience, the outcome will still be good, but it is always better if we take the time to sit down together and define a common goal and a value that we strive for.”
What is MCI’s consultative approach?
MCI has the approach and mindset that we turn every briefing into a strategic creative concept to bring value to the customer. The anchor is the partnership relationship and the trust we develop through sharing our engagement expertise beyond the logistics.
“The value of the solutions we deliver stems from our consultative approach and creativity,” says Andreas. “If we receive a briefing, it is our mindset to turn that briefing into a strategic creative concept.
“We do not simply accept a brief and do what the customer asked for and calculate the days it took. That is the past – today, when we receive a briefing, we look at it and start asking questions. This is because we are focused on helping the customer to be more successful.
“New clients realise that here is an agency that asks very relevant questions, some of which they might not be able to answer, and generally they accept the invitation for a co-creation workshop even before we have pitched.”
In the workshop MCI teams focus on gaining a deep understanding our clients' objectives and partner with them to define the KPIs (key performance indicators) we will use to measure what success would look like after the project. We then start developing a strategy for the specific project, whether it is an event, a social media campaign or a communication concept in general.
How we implement value-based pricing for consulting services
Sylvia André, MCI's Chief Creativity Officer points to three ways we succeed for our clients:
- In-depth understanding: We ask the questions you might not have considered. We delve deep into your objectives, creating a roadmap for success that goes beyond the conventional response to a brief.
- Co-creation workshops: We invite you to join us in co-creation workshops, where we define your key performance indicators (KPIs) together. You'll discover the true essence of your project and why it matters.
- Strategic creative concepts: Every briefing we receive is an opportunity to turn your needs into a strategic creative concept that adds value to your business. We`re not simply consultants, we are partners in your success.
Andreas shares the process MCI uses to implement value-based pricing for our consulting services:
- Teamwork and target-setting: We start by learning everything about your organisation or brand, and apply our strategic and creative thinking, expertise and experience to solving your pain points and meeting your objectives. Your success is our focus.
- Define value: We work together to define the value our services will bring to your business, and how we will we help you achieve your goals.
- Fair pricing: The price we set is fair to both parties, reflecting the value we’ll create for your business.
At MCI we believe that success is a joint effort. By adopting value-based pricing, we ensure that our interest is aligned with that of our clients.
Together, we can reach the heights that you aspire to. Contact us today.
Andreas Laube - Managing Director, MCI Germany
Sylvia André - Chief Creativity Officer, mci group
