19. Professional Services - Staying Valuable as Clients Cut Costs

Pricing, packaging and trust strategies for consultants, agencies and advisors

1. Introduction

Consultants, agencies and professional service firms often feel the effects of a downturn later than others - but when it hits, it can be swift. Projects pause, retainers drop off and clients pull back on anything that feels optional.

This article closes Pillar 5 - Sector Spotlights, with practical advice for those in professional services. It offers guidance on pricing, packaging and trust-building in an environment where value must be clear and loyalty can’t be assumed.

2. Representative Narrative

Gemma runs a small communications consultancy in Wellington, focused on not-for-profits and education providers. She has three part-time contractors and manages a mix of content creation, media coaching and strategic messaging.

Earlier this year, two long-term clients reduced their contracts to “as-needed” work. Others delayed decisions altogether. Revenue dropped by a third in one quarter.

Gemma turned to John Luxton at RegenerationHQ, who’d previously helped her with team development. “Right now, clients still need help,” he said. “But they need to see clear outcomes and flexible options - not open-ended hours.”

3. Recommended Actions

• Repackage your offers into clear, outcome-based products
  Clients want to know what they’ll get, how long it’ll take and what it costs. Offer defined options - audits, strategy refreshes, training blocks - with set prices.

• Review your pricing structure
  Don’t automatically discount. Instead, adjust scope or shift to milestone-based billing. Price with transparency, not apology.

• Stay close to your best-fit clients
  Maintain regular contact. Offer check-ins or short advisory calls. Be present without pressure.

• Add a low-risk, entry-level offer
  Create a short-term, low-cost service for clients who want to test working with you before committing to more.

• Show up with insight, not just service
  Share trend updates, short analysis or fresh tools that help your clients navigate change. Become a source of calm and clarity.

4. Expected Outcomes as Narrative

With John’s support, Gemma restructured her services into three core packages and one monthly advisory tier. She contacted her past and current clients with an email titled “How we can help right now” - simple, clear and reassuring.

She also introduced a free 20-minute “clarity call” for new leads. Within six weeks, she gained three new clients and two returning projects - not at old rates, but on simpler, better-defined terms.

More importantly, Gemma felt confident again. “I’m not chasing work,” she said. “I’m making it easier for people to see what we’re good at.”

5. Red Flags & Mitigating Strategies

Red Flag 1 - Offering only open-ended hourly work
Mitigation - Shift to packaged services with set outcomes and timelines

Red Flag 2 - Discounting heavily to keep clients
Mitigation - Adjust scope before price — and explain value clearly

Red Flag 3 - Waiting passively for clients to come back
Mitigation - Reconnect with purpose and offer something timely and useful

6. HR Best Practice

If you have a small team or contractors, downturns can strain morale and clarity.

• Keep people updated - especially about project pipelines

• Share the strategy and involve them in decisions

• Use quiet time for training, IP development or process reviews

• Be honest about what’s shifting, but also clear about what stays steady

 John often says, “Certainty comes from clarity - even when the news is hard.”

7. Psychological Perspective

Professional service providers often internalise client pullback. When work slows, self-worth can take a knock. But a downturn doesn’t mean your skills aren’t valuable, just that clients are under pressure.

The key is to reduce friction. Make it easy to say yes. Frame your support in the client’s language, not just your own. Clients aren’t saying no to you - they’re saying no to risk. Your job is to help them feel safer making the next move.

8. Recommended Owner's Mindset

Lead with clear generosity. Be open about what you offer. Be helpful even when there’s no sale. Keep showing up, keep listening and trust that clarity creates momentum.

9. Reflective Questions for the Owner

• Are my services described in terms of outcomes - or just activity?

• What does a low-commitment offer look like for my clients right now?

• Who are my best-fit clients - and am I staying in touch with them?

• Am I giving too much away for free - or hiding value behind unclear pricing?

• What feedback have I ignored because I thought I “had to” hold firm?

10. Suggested Ongoing Actions

• Review your service list and repackage into outcomes or stages

• Email past clients with a value-first update and clear invitation

• Trial one small, defined service for a lower price point

• Create one piece of thought leadership content each month

• Schedule regular business review sessions with someone like John Luxton to assess offer health and client experience

Critical Takeaway - In professional services, clarity builds trust and trust drives value when budgets are tight.

If you’d like a confidential, free of charge, free of obligation conversation about your business, here’s how to get me.

📞 Phone +64 275 665 682
✉️ Email john.luxton@regenerationhq.co.nz
🌐 Contact Form www.regenerationhq.co.nz/contact

If you’d like to read more RegenerationHQ thinking on SME business and other things, go here – www.regenerationhq.co.nz/articlesoverview

🔹 RegenerationHQ Ltd - Business Problems Solved Sensibly.
Supporting NZ SME Owners to Exit Well, Lead Better and Build Business Value.