The Benchmark

A $500K Project Now Costs $100K. It Still Sold for $250K.

A project this firm scoped two years ago at $500,000 can now be delivered for about $100,000. The firm sold it at $250,000, and the client was happy to sign.

A member firm re-quoted a project it had scoped two years earlier for the same client. Nothing about the problem had changed. What changed was how much of the work the firm now has to do by hand, because the delivery runs on AI that did not exist when the first number was written.

That left the founder with a pricing decision rather than a pricing formula.

Half the old price to the client. A fifth of the old price to build. The client did not experience that as a concession, it experienced a $500,000 project available for a quarter of a million, which is why it said yes quickly.

Why it matters to you.
When your cost to deliver falls, there are three things that can happen, and only one of them is a decision. You hold the price and keep all of it, and eventually the client works out why. You pass all of it through, which is the default whenever a process quietly gets faster and nobody re-prices. Or you split it: hand the client a number they could not have gotten two years ago, and keep a margin you could not have earned two years ago. The money in this is not lost by firms that priced wrong. It is lost by firms that never priced again.
We originally scoped it 2 years ago as a $500,000 project. Now we think with AI we can do it for $100,000, but we're giving them a great discounted price of a quarter of a million, and they're very happy with that.
Your one thing.
Pick one service you have been delivering the same way for two years. Work out what it costs you to deliver today against what it cost when you set the price. If that gap has moved and the price has not, decide who is getting that money.

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