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

🔻 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.

🔄 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

🔹 Instead of focusing on cost, position yourself as a strategic partner whose services save businesses money, reduce risk, and improve profitability.
🔹 Discounting erodes your brand, your revenue, and your time—charging based on impact keeps your business sustainable.