Financial Post Features MB Consulting’s Unique Fee Model

On November 29th, 2010, posted in: News by MB Consulting Comments Off

Today’s Financial Post featured MB Consulting Inc.’s unique fee for performance model as a key example of a “creative” approach to working with clients. Mark Belchetz, the CEO of MB Consulting, was quoted discussing the rationale for this model and how it has resonated well with many clients.

The following is an excerpt from today’s Financial Post article discussing service entrepreneurs’ pricing models:

As a result of this trend to emotional pricing, some service providers are becoming more creative with their pricing models, attempting to corral the emotion that goes into the negotiation so everyone is happy with the result.

For example, Mark Belchetz, a Toronto business-growth consultant who serves businesses in the $5-million to $10-million range, often offers a retainer and percentage system to clients. Belchetz says his system, which involves sharing a portion of increased revenue, gives clients comfort that his interests are aligned with theirs. The retainer commits the client to the consultation.

“It’s a version of a pay for performance model,” he said. “Not many consultants use it, so it differentiates me. Many small businesses fear consultants. The fees seem open ended and they’re not sure what they’re getting for them. I find it resonates quite well with some people because I’m sharing the risk, I’m putting my money where my mouth is.”

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