Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS
CHOICE 2 SEGMENTS: INDIVIDUAL CUSTOMER SEGMENT / OTHER TYPES OF INDIVIDUAL CUSTOMER
CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE
| No. | SIC | Year | Notes |
| 1 | 8742 | 2009 | For decades, marketing firms, accountants and other professional-service companies have all billed nearly the same way—by the hour, or, on occasion, with long-term contracts. But the recession is chipping away at that tradition, with companies forced to adopt performance-based pay and fixed prices in an effort to retain and attract clients. The change affects marketing, advertising, accounting, recruiting, and even a few law firms. At San Francisco recruitment-outsourcing company Accolo Inc., clients recently began backing out of existing contracts, which require that a company pay Accolo several thousand dollars a month to fill a certain number of jobs. Now, new and existing clients were allowed to start working under what the company calls a "No/No" Contract. The clients pay no fixed monthly fee, and they aren't required to fill a certain number of jobs. Instead, when they need to fill a job, the clients pay a higher one-time fee. |
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