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  #91  
Old 09-20-2018, 06:56 PM
Westley Westley is offline
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Not out-of-the-question, but do you actually understand what the $100k fee was for? For example, if they were willing to pay $100k to have a PwC Partner who was friends with the Chairman sign off so that the Board wouldn't ask any questions of management, you are not able to provide that service to management for any price.

The things that matter may or may not be the answers that you were/are personally able to provide.

Also, even just wrt the numbers being provided: depending on what the numbers were used for "almost as good of a job" for $10k may not be preferred, compared to the $100k.
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Old 09-20-2018, 09:09 PM
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I used to do actuarial "consulting" for a large "consulting firm" where we did super simple math to set health insurance budgets as much as $1B. Our annual fees were around $100k for just this with follow-ups, presentations, travel etc.

I feel like I could market myself out to undercut my former employer's fees by a fraction and do almost as good of a job. Just charge like $500/hr, have an E&O clause, make like $10k per client per year.

No?
Name brand and reputation matter. A lot of it comes down to relationships. But hey you've been in consulting longer than I have so you'd know better than me.
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  #93  
Old 09-20-2018, 09:10 PM
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And also the ability to be sued up the wazoo
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  #94  
Old 09-20-2018, 09:40 PM
Westley Westley is offline
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And also the ability to be sued up the wazoo
This sounds tongue-in-cheek, but I assume is serious. If not, it should be. Not completely distinct from the name brand/reputation issue. PwC* will always be concerned about being sued, which is why they will enforce quality standards internally in order to minimize that. Fly-By-Night Consulting will not always do so - if they have a billion-dollar error, you collect their $1MM E&O coverage, they declare bk, and the people go start a new company, called FBNConsulting.


*just an example, I don't consider PwC to have "the best" reputation or anything - more like, they are in the bucket of firms that have a name brand and reputation and can be sued up the wazoo, all of whom view this pretty similarly.
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Old 09-21-2018, 11:59 AM
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Originally Posted by Westley View Post
This sounds tongue-in-cheek, but I assume is serious. If not, it should be. Not completely distinct from the name brand/reputation issue. PwC* will always be concerned about being sued, which is why they will enforce quality standards internally in order to minimize that. Fly-By-Night Consulting will not always do so - if they have a billion-dollar error, you collect their $1MM E&O coverage, they declare bk, and the people go start a new company, called FBNConsulting.


*just an example, I don't consider PwC to have "the best" reputation or anything - more like, they are in the bucket of firms that have a name brand and reputation and can be sued up the wazoo, all of whom view this pretty similarly.
when I was at a big consulting shop, half your time seemed to be spent on quality control reviewing data and analytics and conclusions and write ups and all kinds of other details. it was a big commitment.

do solo practitioners have someone who does peer review of their work? how do they find such a person?
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  #96  
Old 09-21-2018, 02:27 PM
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Name brand and reputation matter. A lot of it comes down to relationships.
This is true. I've often realized that I would be able to work on projects for 1/10th of the cost, delivery close to the same quality of results, if not better. In most of those projects, the client was looking for a brand name and the credibility that comes with it, even if paying 10X the cost.
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  #97  
Old 09-21-2018, 03:46 PM
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Most of the "strategy" we provided was stuff like benefit benchmarking, survey data. A lot of it was junk or flimsy.

A couple of my clients were completely pricing/reserving oriented and it was stuff I could do in a day or two, total, if I really wanted to, plus whatever lag time necessary to extract data from account persons. Very simplistic exercises.

And yeah, our E&O clause covered only $75,000. Again, we made million dollar decisions left and right.
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