Friday 11 August 2017

Make Your Own Lane: The Four Quadrant Price Slab

The following are for illustration purpose only:

Example 1:

Function: Social Media Management
Outcome: Revenue increase by FY 2018

A] The above table is basically letting the company management take a call regarding what level of support they want from us and accordingly we charge them.

B] The four quadrants are just for understanding. The quotes are random (without any thought, study or research) just to drive the point.

Example 2:

1] Work scope: "Web mining” or "Research" - That is the "function" (We can have competition there. Many can be offering this service. We talk quality, TAT, relationship whatever and win the project)

2] What is the web mining for? - Let us assume, clients want to "increase leads" based on the data gathered - BECKON Consultant's ownership is to achieve that outcome “leads” as that is quantifiable in terms of currency or financial numbers

The deliverable is not "function" – Your deliverable will be client's business “outcomes” if the client opts for Quadrant 4 pricing.

Example 3:

1] Function: Business plan (2nd Quadrant Quote): $135 - $440 subject to industry

2] Outcome: Seed Funds
If a BECKON Consultant agrees to do a business plan to ensure client gets seed funds from investor within 10 months – The quote can be $10000 (4th Quadrant).

3] If seed funds cannot be sourced within agreed time frame, consultant will refund 50 to 75% of this quote. The consultant will be involved in many functions - plan, strategy, conferences, and negotiation with investors, social media management or brand awareness - any lead measure that takes client closer to seed funds. 

Example 4:

1] A company has 18 billable resources that deliver 1 lac transactions every month with annual business revenue $90000

2] If another startup talks about 5 virtual resources aligned to 2 projects with a combined quarterly turnover of $55000 

Case study 2 qualifies as BECKON Consultant for large projects because we are inclined towards lean management.

Example 5:

1] Quadrant 1 Pricing:  Design website including content
2] Quadrant 4 pricing: Website should fulfill agreed metrics (Traffic, visitors, leads, conversion, revenue etc.) within 10 months

Usually Quadrant 4 pricing is approximately 25 times more.

In case of example 5, if a company or any other vendor/ freelancer executes website design part of the project and fail to execute the scope under Quadrant 4 pricing – there is refund involved.

If client does not bother about quadrant 4 pricing or want metrics to be handled by in house team, we can always do website designing piece with no refund clause included.

Strategically, as a team and new entrants in the market, we are keen to engage with clients for Quadrant 4 pricing and so we are screening / handpicking resources that can facilitate that.

We no longer define "activity" as work. That is for the dashboards.

We define "productivity" as work. 

Contact to know more about BECKON Framework and how to qualify to be BECKON Consultant 

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