Showing Discounted Fee

This was to a medical company that produced life-saving devices for surgery. For that reason we really wanted to help. It was a feel-good assignment.  We made several visits to the CEO, resulting in this proposal. Jim Allbaugh was our Vice President of Sales.

Whenever possible, I like to show potential clients a discounted rate so they feel as if they're getting a deal. If they ask for more, I can always say, "I've already given you the biggest discount possible." The "usual fee" is the Mercedes and the discounted fee is the Cadillac. We still make good money.

In this case, that strategy didn't work, and Nick asked us to work by the hour [time and materials] up to a set limit. We agreed, completed this assignment, and several more. This letter shows a discount paragraph, and beneath it, the wording included in the final proposal.
 

May 9, 20—

Nick Simmering
President/CEO
Aclect Research
2324 Quentin Rd
Brooklyn, NY 11229-2414

Nick,
Jim Allbaugh and I enjoyed learning about your personal history and about the successes and challenges at Aclect Research. The tour of your facility really brought the concept to life. You have a wonderful company, and we will help accelerate your success. As discussed, here are a few "toe-in-the-water" tactics for getting started with a leadership development program.

Organizational Needs Assessment
I will meet with each member of your leadership team to determine their view of the world, including: 1) their career, 2) the organization's policies and procedures, 3) political barriers to their success, 4) your leadership style, and 5) the view of the future.  The meeting will follow a structured interview that you and I will review and agree upon. We will give the participants absolute CONFIDENTIALITY to insure their openness. The outcome of the organizational needs assessment will be:

  1. A report of the findings and a discussion about recommended next steps.
  2. A tune-up of your existing leadership team.
  3. An up-tick in personal performance and interpersonal effectiveness.
The Birkman Method As A Leadership Tool
I will introduce you to the advanced Birkman assessment, a career development and leadership tool, to give you knowledge and insights about your leadership style and your strengths.  Outcome: stronger self-awareness, familiarity with the tool for executive recruitment, development, retention, and teambuilding.  

Professional Fees:
The usual fee for this project is $12,125. Because of our alignment with your culture and values and our interest in working with Aclet Research, we're reducing that to $9,700, giving you a discount of $2,425 [20%]. The $9,700 fee is payable 50% in advance and 50% in 30 days.

We agree, Nick, that Aclect Research is on a strong growth curve, but now is the time to build the infrastructure to sustain the growth. We can really make a difference immediately. Please sign below to accept this proposal-and let's get started!

Many thanks,

William S. Frank
 

Read, understood, and agreed to:

____________________________
Nick Simmering, President | DATE



Professional Fees:
The fee for this project is $300 per hour, not to exceed $8,750. The fee is payable 50% in advance and 50% in 30 days.

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