The New Value Quadrant: How to Price Consulting & Agency Services in the Agentic Era

Read this on the newsletter:
https://dogoodwork.substack.com/p/the-new-value-quadrant-how-to-price

Services Stack
https://dogoodwork.substack.com/p/the-service-stack-what-remains-when

00:00 AI Is Deflationary: The Pricing Squeeze Hits Agencies
00:20 The “AI Discount” Story & the AI Pricing Trap
01:38 Jevons Paradox: Cheaper Execution, Higher Demand
02:40 Stop Selling Hours—Sell Outcomes, Transformation & Belief
03:38 Why Legacy Pricing Breaks (Retainers, Hourly, Projects)
04:35 Introducing the New Value Quadrant (4 Pricing Models)
06:05 Quadrant 1 — The Margin Play: Keep Prices, Expand Profit
06:49 Net-New Value in Q1: Reinvest Time Savings, Don’t Cut Fees
10:39 Quadrant 2 — The Volume Play: Outcome/Consumption-Based Pricing
12:46 Designing Q2 for Long LTV: Caps, Tiers & Beating Churn
16:14 Quadrant 3 — The IP Play: Turn Your Methodology into Agentic Workflows
20:57 Quadrant 4 — Value Capture: Performance Deals with More Control
23:21 Retainer Floor + Performance Upside (Leading & Lagging Metrics)
24:03 Why Caps Build Trust (and Why Equity Splits Can Backfire)
25:32 The AI Adoption Gap: Your Window to Price Outcomes, Not Inputs
28:59 Who to Work With: The 3-Part Ideal Client “Trifecta”
30:07 Trifecta #1: Growing Market + Conviction (Sell Transformation, Not Services)
32:07 Trifecta #2: Target Tech-Laggard Industries to Avoid Commoditization
33:41 Trifecta #3: The Founder Must ‘Get It’ (No Convincing on Sales Calls)
36:07 The Craft Model: Small Elite Team + Agents to Deliver Net-New Value
39:39 Stop Discounting Because of AI: Choose Your Quadrant & Price the Output

AI's Impact on Client Services: What You Need to Know

Dive into the transformative effects of AI on client services with Raul. Discover why AI won't just be a tool, but a replacement for many tasks in agencies and consultancies. Raul shares real-world examples, offers a detailed breakdown of the five layers of client service work, and provides insights on how to adapt in this new era of value creation. Learn how to position yourself and your business to thrive amidst these changes.

00:00 Introduction: The AI Revolution in Client Services
00:33 Real-World Applications of AI
02:41 The Future of Client Services
04:50 Understanding the Services Stack
05:46 Layer 1: Execution
07:30 Layer 2: Template Strategy
09:19 Layer 3: Judgment-Driven Strategy
12:42 Layer 4: Transformation and Accountability
16:21 Layer 5: Belief
19:54 The Power of Belief in Client Relationships
21:35 The Future of the Agency Model
22:40 Introducing the Craft Model
23:35 AI's Role in the Craft Model
25:20 Adapting to the New Reality
28:59 Practical Steps for Transitioning
35:29 Final Thoughts and Call to Action

In this episode, I sit down with Andy Leonard, host of the Fulfillment Project podcast to discuss the essence of true fulfillment. We delve into Andy's mission to inspire individuals to find purpose beyond material success by integrating faith, family, and meaningful work. Andy shares his insights on the importance of reflection, purposeful living, and combating the comfort-driven culture of modern society. Learn about his personal practices, such as daily reflections, planning, and injecting intentional discomfort to foster growth. Whether you're looking to realign your life's purpose or seeking practical advice on how to show up authentically in your personal and professional life, this conversation is packed with valuable nuggets. Join us as we explore the profound impact of contributing to something greater than oneself and the pursuit of a truly fulfilling life.

00:50 The Essence of Work and Fulfillment

01:40 Personal Reflections and Practices

03:37 The Importance of Intentionality

06:48 Fighting Comfort and Embracing Discomfort

15:18 Purpose-Driven Workplaces

16:10 Finding Purpose in Everyday Work

16:51 The Transformative Power of Education

19:13 Daily Reflections and Intentional Living

21:24 Facing Mortality and Finding Peace

23:27 The Concept of a Brave Death

Connect with Andy:

• https://substack.com/@fufillmentproject

Connect with Raul:

• Work with Raul: https://dogoodwork.io

• Free Growth Resources: https://dogoodwork.io/resources