Tag

realization rate

2 insights

CXO editorial cover charting alternative fee arrangements as a share of firm revenue, rising from about 20% in 2023 toward a projected 70% or more, illustrating that rate strategy has stopped being a profit lever and margin now depends on the cost of delivery.

Rate Strategy Stopped Being a Lever. Your Advantage Moved to the Cost of Delivery.

2026 rate data shows firms collect the same effective rate whether they discount hard or hold firm. Pricing power is neutral. The margin lever that still moves is the cost of delivery.
Professional Services OpsBusiness Case & ROI
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Bar chart showing annual revenue at risk from billing realization gaps at $3M, $5M, and $10M professional services firms

Firms Collect Roughly the Same Per Hour Whether They Discount or Hold Firm. The Leak Is Downstream.

Professional services firms debate rate strategy while losing 12% of revenue downstream. The fix isn't a rate card conversation - it's a collections process.
Collections & ARProfessional Services Ops
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