Packages priced to earn 2.2x to 4.7x more per hour.
An outsourced HR firm replaced hourly billing with packaged pricing and rebuilt how it sells.
Case Study
Professional services
At a glance
CLIENT
An outsourced HR firm for small and mid-sized businesses
ENGAGEMENT
February to September 2024
SCOPE
Pricing, positioning, costing, sales process, team structure and funnel
~4.7x
REVENUE PER HOUR, TOP PACKAGE V.S. HOURLY BILLING
~$1,000
REVENUE PER HOUR, THE TOP PACKAGE IS PRICES TO EARN V.S. $212 TO $225
~437%
INCREASE IN GROSS PROFITS PER HOUR, TOP PACKAGE
4
MONTHLY PACKAGES REPLACE HOURLY BILLING
01
THE SITUATION
A growth request that pointed to a pricing problem.
The firm hired us to build its founder's personal brand. She had more than 15 years in HR, a loyal client base and a small team, and she wanted the firm to grow.
As we worked together, the business picture came into focus: payroll was tight, clients were leaving, the team was stretched to the point that staff were hard to keep, and the firm's packages were not selling. Before adding leads, we reviewed whether the firm could turn them into profitable clients.
02
WHAT WE FOUND
Revenue was capped by hours.
The firm billed $250 an hour, discounted 10 to 15% for package clients, so most work earned $212 to $225. Revenue could only grow as fast as the team logged hours.
Billing disputes strained client relationships, senior staff carried work that did not need them, and sales calls quoted rates before understanding the buyer's problem. More leads would have meant more of the same unprofitable work.
03
WHAT WE BUILT
A new pricing model and the sales process to support it.
Packaged pricing
Four monthly packages with defined deliverables, priced to earn about $500 to $1,000 per hour of work.
Team structure
Work matched to expertise across a senior HR lead, a generalist and assistants.
Costing framework
The hours, staffing and payroll cost behind every package, so margin is visible by client.
Funnel
A rewritten landing page and a quiz that points prospects to the right package.
Sales process
Discovery-led calls, outcome-based proposals and a weekly review of recorded calls.
Outcome-based position
Offers rewritten around the outcomes clients buy, with prices raised to match.
“I literally feel the passion coming back… I don't know if I could have gotten here on my own this time, so thank you so much and I'm so excited for what's next.”
Katie, CEO Outsourced HR
04
OUR RESULTS
Higher yield on every hour, and larger contracts.
Each hour of work now earns more, and the founder sells larger, longer engagements.
yield
$212 to $225
Revenue per hour before, under hourly billing
$500 to $1K
Revenue per hour the packages are priced to earn
sales
Larger contracts
Multi-month packages, strategic retainers and multi-phase plans.
Predictable revenue
Flat monthly fees replaced variable hourly invoices.
A repeatable sales process
Discovery-led calls, outcome-based proposals and a weekly review of recorded calls.
what they own
Clear, flat pricing
Two years later, the firm still sells set monthly packages and does not bill by the hour.
Margin by client
A costing model showing the hours, staffing and payroll cost behind every package.
Clear roles and workload
Every package spells out who does the work, so senior staff stay on senior work and routine tasks go to the generalist and assistants.The development contract opened partnerships with other developments.
Gross profit is after direct labor, using the firm's generalist salary of about $32 an hour. Work done by senior staff costs more, so actual margin per hour on that work is lower. The hourly baseline is $250 less the 10 to 15% package discount. Package figures are the hourly yield each package was priced to earn.
Results reflect an individual engagement and are not typical or guaranteed.
WORK WITH US
Bring us the goal.
Tell us where the business is, where you want it to go, and what might be in the way. We'll tell you plainly whether we can help.
A short application, then a call with Tianna or McKayla.