| Topic Name: |
The situation at McKinsey, Bain & BCG |
| Message Name: |
hmm.... |
| Date Posted: |
04/22/2003 |
| In Reply To: |
Clients actually disclose the rival offers quite often, although they usually just tell you the ballpark figures. But if the partner knows one of the clients very well and that particular person fells bad for not awarding the project to the partner, he'll talk! Think about it, it's to the clients' benefits if they can lowball you the next time, and it's no secret these days that all corporations are trying to "collude" to depress consulting prices. Go ask any partner, and he'll tell you that it's a lot more difficult to sell high-price consulting work these days. I don't know much about consulting for PE firms, but in the industry world, I can totally see how a $17K project is signed these days. I've been seeing my office doing work at a huge discount and in some instances, agreeing to only charge expenses to get in the door (may be that explains the $17K). I've also been seeing an effort to go for the "smaller fish", i.e., mid-market companies, because the "bigger fish" is not buying. I work in a big office so I guess it does mean something. Having said that, I personally find working for smaller clients a refreshing experience! |
| Message: |
You guys charging only expenses could be the reason that my last pitch got rejected! j/k
Certainly it is harder to sell the mega-cases nowadays, but I'm very surprised to hear firms even caring about any non-PE work for only $11K unless it's an absolutely phenomenal piece of work. If you put more than a few hours of partner time into such a pitch, the NPV turns negative.
What I have noticed in terms of "buyer collusion" is that clients are inviting more competitors to their bake-offs. Whereas it used to be 2-3 firms, we've seen a few 6-8 firm bakeoffs.
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