Pitching less for Exclusive deals

The traditional approach to pricing is: -

 Contingent – lowest price

• Exclusive – more expensive than contingent
• Retained – more expensive than exclusive

Now, a full retained search requires a lot of activity for which you will want to be paid.

But exclusive carries much the same effort as contingent, maybe a little more.

However, on average, only 1 in 5 contingent deals end in fees, but the figure is closer to 4 out of 5 for exclusive.

In other words, your hourly rate (number of hours you work on all vacancies divided into fees earned) is considerably greater for contingent.

This means that you can lower the fees for contingent deals, making it even more attractive to buyers.

In this edition of FTDOMA, I follow the argument to its conclusion.