Kenway Stands Firm Pricing Structure
To operate with maximum efficiency and strive to maintain a low cost structure with every decision made. To communicate swiftly and effectively through all channels, at all levels, internally and externally, regardless of whether the information is good or bad. To provide premium-level, consultative services at below market pricing.
The procurement organization of a long-term client requested that Kenway lower rates by 10%. Kenway already operates at a thin profit margin in order to ensure high quality, affordability to clients, and competitive salaries to employees. Kenway always gives it clients the best rate for the first hour of work, and therefore had no room for discounts. Despite the long standing relationship, the answer had to be “no”.
Kenway seeks to provide premium-level consultative services at fair market pricing. By keeping company overhead low, Kenway is able to charge significantly lower rates than many other consulting firms. The goal is to establish long-term, mutually beneficial relationships with clients while also minimizing unstaffed time for employees. This has resulted in steady growth throughout the company’s history as Kenway is providing significant value to clients. Furthermore, Kenway is very clear and upfront about their rates. Kenway does not present inflated bill rates only to give the façade of a discount later on.
Kenway said no to the rate reduction but presented details on why it was not possible given that the current rates were already the best rates. In addition, much information was provided on how Kenway does in fact provide significant cost reductions when compared to rates competing firms charge for similar caliber of consulting services. This response was not only sent to the group requesting the reduction but also to all end stakeholders using Kenway’s services.
Kenway believes that inflating bill rates and modifying them simply to keep business is the wrong way to approach a collaborative relationship. After several discussions with the client, they decided to continue partnering with Kenway, even without reduced rates.