Designing and testing a resource-based method for setting professional fees

Associations of professional services have increasingly felt the need to provide their membership with guidance for setting fees. The whole issue of fee setting has historically either been shrouded in opaque calculations or skirted with the use of published scales. One association's attempt to...

Full description

Saved in:
Bibliographic Details
Published inServices marketing quarterly Vol. 13; no. 2; p. 71
Main Author Auty, Susan
Format Journal Article
LanguageEnglish
Published New York Taylor & Francis LLC 01.01.1996
Subjects
Associations
Business services
Cost accounting
Costs
Customer services
Elasticity of demand
Handbooks
Leadership
Market penetration
Marketing
Professional fees
Professionals
Profits
Service industries
Standardization
Studies
United States > US
Online AccessGet full text

Cover

More Information
Summary:Associations of professional services have increasingly felt the need to provide their membership with guidance for setting fees. The whole issue of fee setting has historically either been shrouded in opaque calculations or skirted with the use of published scales. One association's attempt to design and test a method for setting fees, based on the resources required for projects of specified attributions, is discussed. Lessons for professionals were learned both with regard to the diffusion of innovatory practices and more specifically with regard to the pricing of professional services. Associations must recognize the differing needs of segments which exist within their membership, based most likely on size of practice and possibly on region or type of customer. In pricing their services, professionals need to take much greater account of the resources devoted to projects, using their own historical data and benchmarks of "best practice" firms as a basis for deriving formula.
ISSN:1533-2969
1533-2977
DOI:10.1080/15332969.1996.9985219