27.06.2025
by Stephan Breitfeld
It’s always the right moment to reflect on fee structures.
The question of appropriate consultancy fees often leads a shadowy existence – rarely addressed openly, even less frequently thought through strategically. Yet the quieter summer months offer an ideal opportunity to reflect on a fundamental business reality: Why do consulting services cost what they do? And why is this pricing not only justified but economically essential?
The Hidden Cost Drivers
Current industry analyses make it clear: Daily rates in consulting are far from arbitrary. They follow detailed calculation models that reflect the realities of the business. Personnel expenses – including social contributions – make up nearly two-thirds of all costs in management consulting. This alone illustrates how people-intensive the industry is.
But the visible service is only part of the equation. A large share of expenditure is tied up in non-billable work: market research, preparation of complex proposals, and client discussions that don’t result in an engagement. On average, consultants spend around 20 working days per year on offers that don’t convert. It is evident that successful mandates must also absorb the cost of unsuccessful ones.
Specific Challenges in Project-Based Services
Executive research and similar specialized consulting fields face additional challenges. Costs arise from deep preparatory work, multi-step assessment procedures, and intensive personal conversations – often invisible, yet decisive for project success.
This investment in quality pays off. International studies show that failed C-level hires can cost companies three to five times the annual salary of the position in question. In this light, a thoughtful fee structure is not about profit maximization – it’s about minimizing risk.
Time for Transparent Communication
While pricing may seem an unglamorous topic, its importance goes far beyond individual industries. At its core, it’s about the value we place on expertise, the trust we build through structured processes, and the courage to talk openly about economic realities.
Especially in times of increasing AI integration, human judgment and experience become key differentiators. Companies that take this seriously should use the summer slowdown to reflect on their pricing models – and to communicate openly what high-quality consulting really costs and why it’s worth the investment.
This perspective builds on thoughts shared by Dirk Lippold and other experts who have long called for greater transparency in the economic foundations of consulting services – insights that remain highly relevant today.
Your Experience Is in Demand
How do you handle the topic of fees – whether as a consultant or a client? Which strategies have helped foster transparent communication and mutual understanding around costs? Where do you see the greatest added value – and where the most frequent misconceptions?
Share your perspective in the comments. Because only through honest dialogue can we develop fair and comprehensible standards – together.
