There’s a big issue with the Internet and professional service businesses: Should they post prices?

It’s a perplexing question. We know that it would be pointless for Power Pair Marketing to post prices. Why? Each client comes with different needs, there are lot of caveats to the work we do, and that makes a straight cost – even a cost range – difficult for us to publish because it can feel misleading. 

The same idea holds true for many of the professionals we represent. However, people do shop for price online. There’s a big difference between searching for flat screen TV prices on Amazon and finding a lawyer. But, hey, even flat screen TVs come with a variety of prices: our cursory search showed $80 for a low-end 24-inch TV and $3,300 for a 75-inch rolling outdoor LED model. 

We have a suggestion for many of our clients, which is to publish case studies or, where appropriate, percentage costs. For instance, a financial advisor typically charges between 0.75 percent and 1.25 percent of assets under management, although some apply tiers based on different sums – one percent for the first million, 0.75 percent up to five million, 0.5 percent for the next five million. 

The same holds true for some lawyers and life insurance brokers. Typically, these professionals are paid on a commission or contingency basis. What clients don’t always understand is how this works. Insurance agents, for instance, don’t have to disclose their compensation, but should note how they will service the policy once the commission is paid, which is usually in the first year or two. 

Attorneys working on contingency should always let the client know that typically a third of what they collect, plus expenses, will be paid to the firm. So, a $100,000 settlement could mean $35,000 to the law firm and $65,000 to the client. 

What is important with pricing for professional services, more than anything, is transparency. A prospect can always go bargain hunting, but by posting broad concepts and examples doesn’t mean that cases are necessarily going to adhere to those cost guidelines. And people will call, talk to you, and then talk to others. By posting some ideas about pricing, you can help people to not waste their time, and that can be really appreciated. 

We hope the Men Without Hair podcasts are helpful. If you have any questions or would like to talk with the Power Pair Marketing team, just fill out the contact form that can be found at the bottom of our main page.