Q. How do your retainer services work?
A: Retainer services for a consultant work differently from other professionals like attorneys.
- Retainers paid to attorneys are a pre-payment of hourly billings.
- Retainers charged by consultants are fees paid for timely access to their knowledge and experience.
- I structure my retainer agreements as 'rapid response' arrangements where the designated individual will have access to my personal contact account and small questions will be addressed within 4 business hours. Conversations requiring 30 or more minutes of conversation will be scheduled by providing 2-3 windows of time flexibility two business days in advance and meeting over a video platform such as Zoom.
Q. What are the payment terms for your consulting assignments?
A: All invoices are due within 30 days of submission.
The payment structure varies based on the type of consulting assignment.
- Monetized Value Assignments: When alignment has been reached on the extended monetized value of the project, I bill for a total of 10% of the value produced to generate a 10x ROI or higher for the client since most estimates are conservative.
- The billing breaks out as follows: 1/3 at project inception, 1/3 after substantial scope completion and the final 1/3 after all objectives have been completed.
- I offer a 20% discount for full payment at the time of signing the agreement.
- Expense Reduction Assignments: Expense reduction assignments are billed on contingency with no fees due up-front, and 50% of achieved savings billed over a typical duration of 24 months.
- The way this model works is to start by establishing baseline pricing and going out to market to generate options for savings with the client making the ultimate decision.
- The purpose of this model is to create a 'zero-risk' proposition for clients so that a new budget line is not required to engage services since all fees are self-funded by savings.
- In most cases, a fee equal to ~10% of forecasted savings is charged when the options for savings are submitted to the client. This is amortized out over the length of the project and serves the purpose of creating a financial commitment to implement the savings initiatives.
- Retainer Services: Retainer services are calculated based on a monthly retainer amount, multiplied by the term of the contract.
- The monthly amount will be negotiated in our proposal and is structured to represent an exceptional ROI for the client and equitable compensation for me.
- The minimum term of retainer agreements is 6-months, with a preferred term of 12-months to reduce administrative overhead. (Billed quarterly)
- I offer a 20% discount for full payment at the time of signing (or renewing) the retainer agreement.