In this episode of the Smart Consulting Sourcing podcast, your host, Helene, dives into a topic that's essential but often misunderstood in the world of consulting: the cost of revenue.
Think of it like the Cost of Goods Sold in other industries, but instead of physical products, we're talking about the brainpower, time, and expertise of consultants. So, the cost of revenue covers everything it takes to get those brilliant minds working on your project.
We're delving into what exactly makes consulting firms financially tick. Is the cost structure as straightforward as it seems? What's the formula for profitability here? And most importantly, what's truly crucial in negotiations-is it focusing on the consultants' margin, or is it the measurable value you get from their expertise?
Understanding these inner workings can give you a real edge in negotiating consulting fees effectively. Don't miss out on this insightful discussion!
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