Lori H. from Aurora. Still figuring out my pricing structure. Do you quote a flat fee upfront or go with percentage of savings found? Had a prospect ask for a flat rate quote on their Xcel Energy account that runs about $8K monthly but I'm nervous about quoting too high and losing the deal.
Pricing strategy for first-time clients?
Cindy O. in Spokane here. I always do flat fee for the audit itself, then percentage of any ongoing savings I can implement. For an $8K monthly account I'd probably quote around $1,500 for the audit. Protects you if you don't find anything and client knows exactly what they're paying upfront.
Alan R. from Tucson. I disagree with flat fees for newer auditors. Go with percentage of savings - usually 25-30% of first year savings. Aligns your interests with the client and you don't lose money if you find big savings. Just make sure you have a minimum fee to cover your time.
Both approaches have merit depending on your confidence level and the client situation. Lori, since you're newer I'd suggest a hybrid approach: quote a modest flat fee ($800-1200) for the comprehensive audit, then 25% of first-year savings for any actionable findings. This covers your base costs while still incentivizing thorough work. As you gain experience and build your success rate data, you can adjust your pricing model accordingly.
Gerald N. from Charlottesville here. Whatever you decide, make sure you define exactly what's included in the audit scope. I learned this the hard way when a client expected me to analyze five years of bills when I'd only planned for twelve months. Clear scope prevents scope creep.
Thanks everyone! Going with Randy's hybrid approach - $1000 audit fee plus 25% of savings found. Feels like the right balance for building my confidence while protecting my time investment.
Ken G. in Lincoln. How did it work out Lori? I'm in the same boat trying to price my first few audits and wondering about real-world results.
Ken, client accepted the proposal and audit is scheduled for next week! Will definitely share results once I complete it. The hybrid pricing gave them confidence I wasn't just looking for a quick percentage grab.