In order to stay competitive in today’s marketplace, architecture and engineering professionals must price their design services according to value, not cost.
- “Consulting is In, and Traditional A/E Practice is Out. The 2010s and 2020s will see successful firms move out of design production and into client consulting. Firms that have weathered the economic storms of the last 20 years did so in part by tackling a variety of smaller, more “non-design” study projects helping clients in hundreds of ways heretofore unheard of by most design professionals.
- Chameleons Will Prosper. Clients’ demands and the rapid shifting of market needs have propelled a new breed of design professionals into existence in the 2010s and 2020s. The “chameleon firms” capable of switching services, people, markets, and geography are emerging as the firms of first choice. •……..a chameleon firm adapts its strategies to invent a continual stream of new services for clients, and attunes its strategies to every whim of their clients.
- Fewer Firms, Shifting Share, Strength in Networks. The number of design firms is shrinking. In the five-year period leading up to 2013, it plummeted from 150,000 to 138,000 (U.S. Census Bureau statistics). With about 1.3 million employees across 138,000 firms, those firms have an average of nine employees. That suggests a high number of sole proprietors and small shops, but these are not minnows, swimming among sharks.
- With no more overhead than a high-speed Internet connection, and broad networks of contacts from which they can cherry-pick talent for a given project, sole proprietors and micro-shops are well-equipped to design a perfect team and snatch clients away from a larger, more bureaucratic shop.
- They successfully sell the idea that their small size means more value to the client. For the price-sensitive client, a small firm with its minimal overhead (perhaps it has gone virtual and has no office) can handily underbid a larger, overburdened competitor. Clients value small-firm responsiveness and speed, and pay for it.
- Trust is All. Clients are not cheap; they are willing to pay for excellent design and service. But their criteria for excellence are high, and include predictable cost and delivery. Delivering value ensures success, and predictability (and by extension, trust) represents value to a client.
- Service is no longer just an essential element for the small firm; in order to stay competitive, firms of every size must provide nearly incredible levels of service to their clients.”
WRITTEN BY: FRANK STASIOWSKI, FAIA - CEO & FOUNDER OF PSMJ