Principles of Performance Pricing
By: Danny Cahill
Okay what gives? The market has never been hotter, baby boomers are dropping like flies, the stock market is at record levels, all our companies are hiring and hemorrhaging people and yet…
Fee Cutting is at an All Time High!!
Why don’t the laws of supply and demand hold? Shouldn’t the demand for our candidates make everyone fall over just to give us full fees?
Uh, not so much. We as an industry are non vertebrae animals. We are so fragmented that the 15 desk, 10-year-old search firm with high integrity and quality methodologies is competing with the solo act in his/her rec room willing to work for a song. And then there is the internet, and its access to resumes, making our folks a commodity in the eyes of our clients. And of course many of us cut our fees for select clients, that is to say everyone, during the tough times, and thought we’d be able to convert our clients when things got better. As Mellencamp sings in his raspiest voice, “just like everything else, those old dreams kinda came and went.”
So have you had enough of working hard for less? Have you noticed you work harder and get more hassles from the companies who are cheap about our fees? We’ll walk you through some answers, give you some language that has impact, and buck up your nerve too.