The Impact of a 10% Discount on HR Consultants – Especially Those Offering Retainer Packages
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Example: The Financial Impact of a 10% Discount
Scenario: HR Consultant Charging £950 Per Day
Let’s assume an HR consultant works three days a week (12 days per month) at a standard rate of £950 per day.
- Current Monthly Revenue = 12 days × £950 = £11,400
- With a 10% Discount (£855 per day) = 12 days × £855 = £10,260
- Revenue Loss Per Month = £1,140
- Revenue Loss Per Year = £13,680
ð» That’s a loss of over £13K per year – the equivalent of nearly 15 days of unpaid work!
Now, let’s see how much extra work is needed to compensate for the discount:
- At £855 per day, to maintain £11,400 revenue, you’d need to work
13.3 days per month instead of 12 – essentially working an extra 16 days per year for free.
This shows that even a small discount can force you to work harder for the same income.
ð What to Do Instead of Discounting?
1. Offer Added Value Instead of Cutting Prices
- Include an extra 30-minute strategy session for retainers.
- Provide a customised HR audit as part of the onboarding process.
- Give access to exclusive templates or compliance toolkits.
2. Tier Your Retainer Packages Instead of Discounting
- Basic Retainer (£X per month) – Core HR support
- Premium Retainer (£Y per month) – Includes extra advisory time
- VIP Retainer (£Z per month) – Includes strategy consulting & leadership support
3. Offer a Paid Strategy Session First
- Instead of discounting, offer a one-off paid strategy session (£500-£750) to help clients understand the value of ongoing support.
4. Incentivise Upfront Payments
- If cash flow is a concern, offer a small incentive (not a discount) for clients who pay upfront for 6-12 months.
5. Highlight the Business Impact, Not the Cost
- Shift the conversation from price to ROI:
- “What’s the cost of a tribunal vs. having proactive HR support?”
- “How much is turnover costing you compared to retaining top talent?”
- “What’s the risk of compliance issues without a structured HR strategy?”
Final Thought: Value-Based Pricing Wins
ð¹ Instead of focusing on cost, position yourself as a strategic partner whose services save businesses money, reduce risk, and improve profitability.
ð¹ Discounting erodes your brand, your revenue, and your time—charging based on impact keeps your business sustainable.