{"id":464,"date":"2025-06-27T08:58:23","date_gmt":"2025-06-27T06:58:23","guid":{"rendered":"https:\/\/www.ingeniam.de\/blog\/?p=464"},"modified":"2025-06-27T08:58:23","modified_gmt":"2025-06-27T06:58:23","slug":"why-good-advice-is-expensive","status":"publish","type":"post","link":"https:\/\/www.ingeniam.de\/blog\/2025\/06\/27\/why-good-advice-is-expensive\/","title":{"rendered":"Why Good Advice Is Expensive"},"content":{"rendered":"\n

27.06.2025<\/p>\n\n\n\n

by Stephan Breitfeld<\/a><\/p>\n\n\n\n

It\u2019s always the right moment to reflect on fee structures.<\/strong><\/p>\n\n\n\n

The question of appropriate consultancy fees often leads a shadowy existence \u2013 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?<\/p>\n\n\n\n

The Hidden Cost Drivers<\/strong><\/p>\n\n\n\n

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 \u2013 including social contributions \u2013 make up nearly two-thirds of all costs in management consulting. This alone illustrates how people-intensive the industry is.<\/p>\n\n\n\n

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\u2019t result in an engagement. On average, consultants spend around 20 working days per year on offers that don\u2019t convert. It is evident that successful mandates must also absorb the cost of unsuccessful ones.<\/p>\n\n\n\n

Specific Challenges in Project-Based Services<\/strong><\/p>\n\n\n\n

Executive research and similar specialized consulting fields face additional challenges. Costs arise from deep preparatory work, multi-step assessment procedures, and intensive personal conversations \u2013 often invisible, yet decisive for project success.<\/p>\n\n\n\n

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 \u2013 it\u2019s about minimizing risk.<\/p>\n\n\n\n

Time for Transparent Communication<\/strong><\/p>\n\n\n\n

While pricing may seem an unglamorous topic, its importance goes far beyond individual industries. At its core, it\u2019s about the value we place on expertise, the trust we build through structured processes, and the courage to talk openly about economic realities.<\/p>\n\n\n\n

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 \u2013 and to communicate openly what high-quality consulting really costs and why it\u2019s worth the investment.<\/p>\n\n\n\n

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 \u2013 insights that remain highly relevant today.<\/p>\n\n\n\n

Your Experience Is in Demand<\/strong><\/p>\n\n\n\n

How do you handle the topic of fees \u2013 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 \u2013 and where the most frequent misconceptions?<\/p>\n\n\n\n

Share your perspective in the comments. Because only through honest dialogue can we develop fair and comprehensible standards \u2013 together.<\/p>\n","protected":false},"excerpt":{"rendered":"

27.06.2025 by Stephan Breitfeld It\u2019s always the right moment to reflect on fee structures. The question of appropriate consultancy fees often leads a shadowy existence \u2013 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 […]<\/p>\n","protected":false},"author":1,"featured_media":127,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1,3,10],"tags":[12,11],"_links":{"self":[{"href":"https:\/\/www.ingeniam.de\/blog\/wp-json\/wp\/v2\/posts\/464"}],"collection":[{"href":"https:\/\/www.ingeniam.de\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ingeniam.de\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ingeniam.de\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ingeniam.de\/blog\/wp-json\/wp\/v2\/comments?post=464"}],"version-history":[{"count":1,"href":"https:\/\/www.ingeniam.de\/blog\/wp-json\/wp\/v2\/posts\/464\/revisions"}],"predecessor-version":[{"id":465,"href":"https:\/\/www.ingeniam.de\/blog\/wp-json\/wp\/v2\/posts\/464\/revisions\/465"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ingeniam.de\/blog\/wp-json\/wp\/v2\/media\/127"}],"wp:attachment":[{"href":"https:\/\/www.ingeniam.de\/blog\/wp-json\/wp\/v2\/media?parent=464"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ingeniam.de\/blog\/wp-json\/wp\/v2\/categories?post=464"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ingeniam.de\/blog\/wp-json\/wp\/v2\/tags?post=464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}