All insights / Scope and pricing

Practical guide

Show the cost of a consulting discount

Compare the fee reduction with contribution, then decide what changes in the offer.

ContractCanvas insights

Keep cost visible

For a sample CAD 20,000 engagement with CAD 13,000 direct cost, contribution is CAD 7,000. A 10% fee discount removes CAD 2,000 from revenue and leaves CAD 5,000 contribution. That is a 28.57% reduction in contribution dollars, despite the smaller percentage reduction in price.

Distinguish the options

A lower fee for the same work differs from a lower fee for a narrower scope. Consider fewer interviews, a shorter workshop or a different review process only if the resulting service still meets the client’s decision need. Do not present reduced work as an unchanged offer.

Explain the commercial reason

Record whether the discount responds to purchasing constraints, a strategic learning opportunity or a changed delivery arrangement. Specify the duration and scope. An indefinite discount can become a recurring expectation even when the original reason no longer applies.

Review the output

Update fee, deliverables and payment assumptions together. Check that the proposal and commercial schedule reflect the same choice. ContractCanvas demonstrates that review with sample inputs; it does not predict willingness to pay or prove that a discounted engagement will produce later sales.

Related reading

How to price an extra workshop before it becomes a promise

A consulting proposal and statement of work should tell the same story

Direct contribution and markup answer different consulting questions