What You Need to Budget for Professional Discovery Services
The Question Every Exec Should Ask (But Often Doesn’t Until Too Late)
“Okay, so the broken process is costing us $1.5M/year. I get that. But what’s it going to cost to have you come in and figure this out?”
The amateur consultant response: “Oh, we can work that out. Let’s start with the discovery and see what we find…”
[Translation: “I’m going to bill hourly and you’ll get a surprise invoice.”]
The professional consultant response: “The discovery engagement is a fixed-price, 6-week engagement at $75,000. That includes everything: workshops, analysis, documentation, and the comprehensive recommendation package I showed you. Here’s exactly what you get for that investment and why it costs what it costs.”
[Translation: “I respect your budget process and I’m giving you a clear, defensible number upfront.”]
The Discovery Service Investment Model
Engagement Structure: 6-Week Fixed-Price Discovery
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│ TYPICAL AI IMPLEMENTATION DISCOVERY PRICING │
│ (Fixed-Price Engagement) │
└─────────────────────────────────────────────────────────────┘
ENGAGEMENT DURATION: 6 weeks (on-site + remote hybrid)
TOTAL INVESTMENT: $65,000 - $95,000 (typical range)
$75,000 - $85,000 (most common)
PRICING FACTORS:
├─ Company size (50-person startup vs. 5,000-person enterprise)
├─ Complexity (single department vs. cross-functional)
├─ Geographic distribution (one office vs. multi-site)
├─ Number of stakeholders (15 people vs. 150 people)
├─ Consultant seniority (senior partner vs. experienced consultant)
└─ Firm overhead (boutique vs. Big 4)
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WHAT'S INCLUDED IN THE FEE:
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WEEK 1-2: DISCOVERY & CURRENT STATE ANALYSIS
├─ Kickoff meeting with executive team (4 hours)
├─ Stakeholder interviews: 25-30 people × 1 hour each
├─ Process observation: 20-30 hours shadowing team
├─ System review: Analysis of current tech stack
├─ Data analysis: Historical performance, costs, metrics
└─ Travel (if multi-site): Up to 2 trips
WEEK 3-4: HOTBOXING WORKSHOPS & PROBLEM IDENTIFICATION
├─ Workshop design and preparation (8 hours)
├─ 3-4 full-day cross-functional workshops (24-32 hours facilitation)
├─ Real-time documentation and synthesis
├─ Problem prioritization framework application
└─ Stakeholder alignment sessions
WEEK 5: ANALYSIS & SYNTHESIS
├─ Quantified business impact analysis (detailed)
├─ Root cause analysis for top 5-7 problems
├─ Solution approach research and design
├─ Implementation complexity assessment
├─ Preliminary ROI modeling
├─ Resource requirements and timeline estimates
WEEK 6: PRESENTATION & DELIVERABLES
├─ Comprehensive recommendation document (75-150 pages)
├─ Executive presentation deck and delivery (2 hours)
├─ Detailed implementation proposals for prioritized projects
├─ Success metrics and measurement framework
├─ Q&A and refinement based on feedback
└─ Handoff for implementation (if proceeding)
DELIVERABLES (What You Get):
✓ Current State Assessment (15-25 pages)
✓ Prioritized Problem Roadmap (top 5-7 opportunities)
✓ Quantified Business Impact Analysis (detailed cost model)
✓ Recommended Solution Approaches (3-5 projects)
✓ Implementation Complexity Assessment
✓ Preliminary ROI Estimates (with scenarios)
✓ Detailed Implementation Proposals (3 projects)
✓ Resource Requirements & Timeline Estimates
✓ Success Metrics Framework
✓ Executive Presentation Materials
✓ Workshop outputs and raw data
✓ Stakeholder interview summaries
ONGOING SUPPORT:
✓ 2 weeks post-delivery: Clarification questions (email/calls)
✓ 1 follow-up session: 3 months later to discuss progress
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WHAT'S NOT INCLUDED (Additional Services):
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❌ Implementation execution (separate engagement)
❌ Technology procurement or vendor selection
❌ Detailed technical specifications (Phase 2 work)
❌ Change management execution (separate workstream)
❌ Training development and delivery (implementation phase)
❌ Ongoing advisory beyond 2-week support window
These are typically Phase 2 services with separate pricing.
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Cost Breakdown: Why Does Discovery Cost What It Costs?
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TYPICAL COST BREAKDOWN FOR $80,000 DISCOVERY ENGAGEMENT
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LABOR (Primary Cost Component): $68,000 (85%)
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SENIOR CONSULTANT (Lead)
├─ Role: Overall engagement lead, workshops, exec presentations
├─ Time: 240 hours (6 weeks × 40 hrs/week, 100% allocated)
├─ Bill Rate: $200/hour (typical range: $175-$250/hour)
├─ Subtotal: $48,000
├─ Why this rate?
│ ├─ 10+ years experience
│ ├─ Deep AI implementation expertise
│ ├─ Proven workshop facilitation skills
│ └─ Executive-level communication ability
ANALYST/ASSOCIATE (Support)
├─ Role: Data analysis, documentation, research support
├─ Time: 120 hours (6 weeks × 20 hrs/week, 50% allocated)
├─ Bill Rate: $125/hour (typical range: $100-$150/hour)
├─ Subtotal: $15,000
├─ Why needed?
│ ├─ Stakeholder interview documentation
│ ├─ Data collection and analysis
│ ├─ Report drafting and formatting
│ └─ Research and competitive analysis
PARTNER/DIRECTOR (Oversight)
├─ Role: Quality review, executive engagement, methodology
├─ Time: 20 hours (periodic reviews, exec meetings)
├─ Bill Rate: $250/hour (typical range: $225-$350/hour)
├─ Subtotal: $5,000
├─ Why needed?
│ ├─ Engagement quality assurance
│ ├─ Executive relationship management
│ ├─ Technical deep-dives when needed
│ └─ Firm reputation/credibility
TOTAL LABOR: $68,000
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EXPENSES (Reimbursable Costs): $7,000 (9%)
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TRAVEL & LODGING
├─ Flights: $1,500 (3 round-trips @ $500 each)
├─ Hotels: $2,400 (12 nights @ $200/night)
├─ Ground transportation: $600 (rental car, Uber, parking)
├─ Meals: $1,500 (per diem)
└─ Subtotal: $6,000
Note: Remote-hybrid model reduces this significantly
If client is local: Travel costs = $0
If fully remote: Travel costs = $500 (one kickoff trip)
SOFTWARE & TOOLS
├─ Collaboration tools: $200 (Miro, workshop tools)
├─ Data analysis: $300 (temporary software licenses)
├─ Survey tools: $200 (if not using client's)
└─ Subtotal: $700
PRINTING & MATERIALS
├─ Workshop materials: $200
├─ Final deliverable printing: $100 (bound reports)
└─ Subtotal: $300
TOTAL EXPENSES: $7,000
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OVERHEAD & PROFIT: $5,000 (6%)
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FIRM OVERHEAD (Built into bill rates above, but explicit here)
├─ Office/infrastructure
├─ Sales & marketing
├─ Administrative support
├─ Professional development
├─ Insurance & legal
└─ This is already in the $200/hr rate, just making it visible
PROFIT MARGIN
├─ Typical consulting margin: 20-30% after all costs
├─ On $80K engagement: $16K-$24K profit
└─ This funds: R&D, methodology development, bench time,
proposal development, unbillable client support
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TOTAL ENGAGEMENT INVESTMENT: $80,000
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COST PER WEEK: $13,333/week
COST PER DAY: $2,667/day (30 working days)
COMPARE TO:
├─ Senior employee fully loaded: $75-$100/hour ($150K-$200K/year)
├─ But: No ramp time, no learning curve, immediate expertise
├─ Time to value: 6 weeks vs. 6 months hiring/training
└─ Specialization: This is what we do, not learning on your dime
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Pricing Models: What to Expect
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CONSULTING PRICING MODELS FOR DISCOVERY ENGAGEMENTS
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MODEL 1: FIXED-PRICE ENGAGEMENT (RECOMMENDED)
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Description: Single price for defined scope and deliverables
Example: $80,000 for 6-week discovery engagement (as detailed above)
PROS FOR CLIENT:
✓ Budget certainty (no surprises)
✓ Defined scope and deliverables upfront
✓ Consultant incentivized for efficiency
✓ Easy to get budget approval (single number)
✓ Predictable cash flow
CONS FOR CLIENT:
⚠ Less flexibility if scope needs to expand
⚠ May pay for unused hours if engagement runs short
⚠ Renegotiation required for scope changes
WHEN THIS WORKS BEST:
• Well-defined scope (standard discovery process)
• Client wants budget certainty
• Both parties experienced with this type of engagement
• Typical for discovery/assessment work
PRICING RANGE: $65K - $95K (varies by company size/complexity)
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MODEL 2: TIME & MATERIALS (HOURLY)
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Description: Bill for actual hours worked at agreed rates
Example:
Senior Consultant: $200/hour
Analyst: $125/hour
Estimated 360 hours total = $65,000 - $75,000 range
PROS FOR CLIENT:
✓ Only pay for actual time spent
✓ Flexible scope (can expand or contract)
✓ Detailed invoices show exactly what you paid for
✓ Can terminate early if not getting value
CONS FOR CLIENT:
⚠ Budget uncertainty (could exceed estimate)
⚠ Consultant incentivized for hours, not efficiency
⚠ Requires more oversight/tracking
⚠ Harder to get budget approval (range, not number)
WHEN THIS WORKS BEST:
• Scope is uncertain or exploratory
• Client has hourly budget authority
• Long-term advisory relationship
• Phased work where each phase informs the next
PRICING:
Estimate: $65K - $85K (with not-to-exceed cap)
Actual: Varies based on hours (could be less, could be more)
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MODEL 3: RETAINER (MONTHLY FEE)
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Description: Monthly fee for ongoing access/advisory
Example: $15,000/month × 6 months = $90,000 total
PROS FOR CLIENT:
✓ Predictable monthly cost
✓ Ongoing relationship (not just project)
✓ Flexible scope within monthly allocation
✓ Easier to extend if needed
CONS FOR CLIENT:
⚠ May not use all hours each month (waste)
⚠ Higher total cost (paying for availability)
⚠ Requires longer commitment (multi-month)
WHEN THIS WORKS BEST:
• Ongoing advisory needed (beyond discovery)
• Client wants consistent access to consultant
• Work is episodic (some months heavy, some light)
• Prefer monthly budgeting over lump sum
PRICING RANGE: $12K - $20K/month (varies by scope)
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MODEL 4: VALUE-BASED PRICING (RARE FOR DISCOVERY)
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Description: Price based on value delivered, not time spent
Example: 10% of first-year projected benefits =
10% × $862,000 = $86,200
PROS FOR CLIENT:
✓ Aligned incentives (pay for value, not time)
✓ Consultant incentivized to find big opportunities
✓ Could be cheaper if problems are small
CONS FOR CLIENT:
⚠ Price tied to estimates (not realized benefits yet)
⚠ Complex negotiation (what counts as "value"?)
⚠ Hard to validate value attribution
⚠ May be expensive relative to time invested
WHEN THIS WORKS BEST:
• Very experienced consultant with track record
• Client sophisticated in value-based contracting
• Implementation services bundled (pay for results)
• Rare for discovery alone (more common for implementation)
PRICING: Highly variable (5-15% of first-year benefits)
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RECOMMENDED APPROACH FOR AI DISCOVERY:
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FIXED-PRICE WITH PHASED OPTIONS
Phase 1: Discovery (6 weeks) - $80,000 fixed price
├─ All deliverables included
├─ Fixed scope, fixed price
└─ Decision gate at end: Proceed to implementation?
Phase 2: Implementation (varies) - Separate pricing
├─ Priced based on Phase 1 findings
├─ Could be fixed-price per project or T&M
└─ Optional: Only if client wants implementation support
This gives:
✓ Budget certainty for discovery
✓ Flexibility for implementation
✓ Clear decision point between phases
✓ No obligation beyond discovery
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Pricing Tiers by Company Size and Complexity
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PRICING TIERS FOR DISCOVERY ENGAGEMENTS
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TIER 1: SMALL COMPANY / SINGLE DEPARTMENT
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Company Profile:
• 50-200 employees
• Single office or 2-3 locations
• One department/function (e.g., Customer Success team)
• 10-15 stakeholders
• Relatively simple tech stack
• One primary process/workflow
Engagement Scope:
• 15-20 stakeholder interviews
• 2-3 workshop days
• Single-process analysis
• 2-3 recommended projects
PRICING: $55,000 - $70,000
DURATION: 4-5 weeks
TEAM: 1 senior consultant + analyst support
Example: 150-person SaaS startup, optimize CS onboarding
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TIER 2: MID-SIZE COMPANY / CROSS-FUNCTIONAL
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Company Profile:
• 200-1,000 employees
• Multiple offices (3-5 locations)
• 2-3 departments involved (e.g., CS + Sales + Implementation)
• 25-35 stakeholders
• Moderate tech stack complexity
• 3-5 interconnected processes
Engagement Scope:
• 25-30 stakeholder interviews
• 3-4 workshop days
• Multi-process, cross-functional analysis
• 4-6 recommended projects
PRICING: $75,000 - $90,000 (MOST COMMON)
DURATION: 6 weeks
TEAM: 1 senior consultant + analyst + partner oversight
Example: 500-person tech company, end-to-end customer journey
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TIER 3: LARGE COMPANY / ENTERPRISE-WIDE
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Company Profile:
• 1,000+ employees
• 5+ offices or global distributed
• 4+ departments involved (enterprise-wide initiative)
• 40-60 stakeholders
• Complex, legacy tech stack
• Enterprise-scale processes with regional variations
Engagement Scope:
• 40-50 stakeholder interviews
• 5-6 workshop days (multiple sites)
• Enterprise-wide analysis with regional considerations
• 6-8 recommended projects
• Extensive travel and coordination
PRICING: $100,000 - $150,000
DURATION: 8-10 weeks
TEAM: 2 senior consultants + 2 analysts + partner
Example: 3,000-person enterprise, global sales operations
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TIER 4: ENTERPRISE / HIGHLY COMPLEX
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Company Profile:
• 5,000+ employees
• Global operations (10+ countries)
• 5+ departments, multiple business units
• 75-100+ stakeholders
• Highly complex, integrated systems (ERP, legacy, modern)
• Regulatory/compliance considerations
• Multiple languages/cultures
Engagement Scope:
• 60-80 stakeholder interviews
• 8-10 workshop days (multiple countries)
• Multi-business unit analysis
• 8-12 recommended projects
• Regulatory/compliance assessment
• Extensive travel (international)
PRICING: $175,000 - $250,000+
DURATION: 10-12 weeks
TEAM: 3+ senior consultants + 2-3 analysts + partner + specialists
Example: Fortune 500 financial services, global operations transformation
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COMPLEXITY MULTIPLIERS (Added to Base Pricing)
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BASE PRICING + ADJUSTMENTS FOR:
Regulatory/Compliance Requirements: +15-25%
├─ Healthcare (HIPAA)
├─ Financial Services (SOX, PCI, etc.)
├─ Government/Defense (security clearances)
└─ Requires specialized expertise, documentation rigor
International/Multi-Country: +20-30%
├─ Multiple languages
├─ Cultural considerations
├─ International travel costs
└─ Timezone coordination complexity
Technical Complexity: +10-20%
├─ Legacy system integration
├─ Complex enterprise architecture
├─ Custom-built systems (no documentation)
└─ Requires specialized technical expertise
Urgency/Compressed Timeline: +25-40%
├─ 4-week vs. 6-week timeline
├─ Requires surge staffing
└─ Higher resource coordination costs
M&A / Organizational Change: +15-25%
├─ Merger integration
├─ Acquisition due diligence
├─ Restructuring/transformation
└─ Political complexity, sensitivity
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What Clients Actually Pay: Real-World Examples
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REAL-WORLD DISCOVERY ENGAGEMENT EXAMPLES
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EXAMPLE 1: SAAS STARTUP - CUSTOMER ONBOARDING
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Client Profile:
• 150 employees, Series B funded
• Single office (San Francisco)
• Customer Success, Sales, Implementation teams
• 28 stakeholders
• Current tools: Salesforce, CS platform, manual processes
Problem:
"Onboarding takes too long (35 days), CS team overwhelmed,
customers frustrated, can't scale."
Discovery Engagement:
• Duration: 6 weeks
• Interviews: 28 people × 1 hour each
• Workshops: 3 full-day sessions (24 people)
• Current state analysis: 40 hours observation/shadowing
• Deliverables: Full package (140 pages)
PRICING: $78,000 (fixed-price)
├─ Senior Consultant: 240 hours @ $195/hour = $46,800
├─ Analyst: 100 hours @ $135/hour = $13,500
├─ Partner oversight: 16 hours @ $250/hour = $4,000
├─ Travel: $8,500 (remote-first, 2 on-site trips)
├─ Expenses: $1,200 (software, materials)
├─ Firm margin: $4,000
└─ TOTAL: $78,000
Result: Identified $1.5M annual cost, recommended 3-phase
transformation, $435K implementation investment, 6-month payback.
Client approved implementation, continued engagement.
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EXAMPLE 2: MID-SIZE TECH COMPANY - SALES OPERATIONS
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Client Profile:
• 600 employees, profitable
• 3 offices (US East Coast)
• Sales, Sales Ops, Marketing, Finance involved
• 38 stakeholders
• Current tools: Salesforce, Outreach, LinkedIn Sales Nav,
Clari, Gong, custom Excel hell
Problem:
"Sales team drowning in data entry, can't get accurate forecasts,
deals falling through cracks, quota attainment declining."
Discovery Engagement:
• Duration: 7 weeks (extended due to complexity)
• Interviews: 38 people × 1.5 hours each = 57 hours
• Workshops: 4 full-day sessions (32 people across 3 offices)
• Current state: 60 hours process analysis + data audit
• Deliverables: Full package + detailed Salesforce audit
PRICING: $92,000 (fixed-price with expansion clause)
├─ Original quote: $82,000 (6 weeks)
├─ Scope expansion: +$10,000 (1 week, Salesforce deep-dive)
└─ Client requested additional analysis mid-engagement
Breakdown:
├─ Senior Consultant: 280 hours @ $200/hour = $56,000
├─ Analyst: 140 hours @ $130/hour = $18,200
├─ Salesforce specialist: 20 hours @ $225/hour = $4,500
├─ Travel/expenses: $8,800 (3 offices, multiple trips)
├─ Firm margin: $4,500
└─ TOTAL: $92,000
Result: Identified 12 distinct problems costing $2.8M/year,
prioritized top 5, recommended $780K transformation program.
Client approved phased approach, 14-month engagement total.
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EXAMPLE 3: ENTERPRISE FINANCIAL SERVICES - GLOBAL OPS
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Client Profile:
• 4,500 employees, publicly traded
• 8 countries (US, UK, Germany, Singapore, Australia, etc.)
• Operations, Compliance, IT, Regional teams
• 67 stakeholders
• Complex: SAP, Salesforce, multiple regional systems,
regulatory requirements
Problem:
"Post-merger operations chaos, duplicate processes across regions,
compliance nightmares, can't generate consolidated reporting."
Discovery Engagement:
• Duration: 11 weeks
• Interviews: 67 people (some via interpreter) = 110 hours
• Workshops: 6 full-day sessions (multiple countries)
• Current state: 120 hours (process + regulatory + technical)
• Deliverables: Full package + compliance assessment +
integration roadmap
PRICING: $186,000 (fixed-price with complexity adjustments)
Base: $120,000 (standard enterprise discovery)
+ International complexity: +$25,000 (6 countries, travel)
+ Regulatory/compliance: +$18,000 (SOX, GDPR, local regs)
+ Technical complexity: +$15,000 (SAP integration, legacy)
+ M&A context: +$8,000 (merger-specific analysis)
Breakdown:
├─ Senior Consultant #1: 320 hours @ $225/hour = $72,000
├─ Senior Consultant #2: 200 hours @ $225/hour = $45,000
├─ Analysts (2): 240 hours @ $140/hour = $33,600
├─ Compliance specialist: 40 hours @ $275/hour = $11,000
├─ Partner oversight: 24 hours @ $350/hour = $8,400
├─ International travel: $28,000 (flights, hotels, 6 countries)
├─ Local interpreters/support: $4,500
├─ Firm margin: -$16,500 (low margin due to complexity)
└─ TOTAL: $186,000
Result: Identified $8.7M in annual waste and redundancy,
recommended 18-month transformation program ($2.4M investment),
3-year partnership, $680K in advisory fees over 3 years.
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EXAMPLE 4: SMALL STARTUP - LEAN DISCOVERY
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Client Profile:
• 45 employees, Seed stage
• Single office, tight budget
• Customer Support team (6 people) + Engineering
• 12 stakeholders
• Minimal tools: Intercom, Google Sheets
Problem:
"Support team buried in tickets, customers waiting days for
responses, engineers constantly interrupted, founder doing support."
Discovery Engagement:
• Duration: 3.5 weeks (compressed)
• Interviews: 12 people × 45 min each = 9 hours
• Workshops: 1.5 days (compressed format)
• Current state: 20 hours observation + ticket analysis
• Deliverables: Essential package only (45 pages, focused)
PRICING: $38,000 (budget-conscious, startup-friendly)
├─ Senior Consultant: 120 hours @ $175/hour = $21,000
├─ Analyst: 60 hours @ $110/hour = $6,600
├─ No travel (fully remote)
├─ Minimal expenses: $400
├─ Firm margin: $10,000 (higher % margin, lower absolute $)
└─ TOTAL: $38,000
Result: Identified $420K annual cost (huge for 45-person company),
recommended AI-powered support automation + process changes,
$65K implementation, 4-month payback. Client implemented DIY with
consultant guidance (follow-on advisory: $8K).
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The ROI of Discovery: Why It’s Worth the Investment
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THE ROI OF PROFESSIONAL DISCOVERY
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INVESTMENT: $80,000 (discovery engagement)
RETURNS (What You Get for That Investment):
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RETURN 1: Clarity on the Problem
├─ Value: Avoid solving the wrong problem
├─ Cost of solving wrong problem: $200K-$500K wasted + 6-12 months
├─ ROI: Even small course correction saves multiples of discovery cost
Example: Company thinks they need new CRM. Discovery reveals problem
is actually broken handoff processes between Sales and CS. Solution:
$50K process automation vs. $400K CRM replacement. Discovery saved $350K.
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RETURN 2: Quantified Business Case
├─ Value: Defensible ROI for getting project approved
├─ Without this: Project doesn't get funded (no budget approval)
├─ ROI: Discovery enables $435K project that delivers $862K/year
Example: Without quantification, project seen as "nice to have."
With quantified $1.5M annual cost, project becomes strategic priority.
Discovery unlocked $862K/year in benefits (10.8× return Year 1).
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RETURN 3: Stakeholder Alignment
├─ Value: Cross-functional buy-in before implementation
├─ Cost of misalignment: Failed adoption, finger-pointing, scope creep
├─ ROI: Smooth implementation vs. 6-month political battle
Example: CS, Sales, and Implementation all blamed each other for
onboarding problems. Discovery workshops created shared understanding
of root causes. Implementation adoption 89% vs. typical 40-60%.
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RETURN 4: Realistic Implementation Plan
├─ Value: Accurate scope, timeline, budget for implementation
├─ Cost of bad planning: 2× time, 1.5× cost, frustrated stakeholders
├─ ROI: On-time, on-budget delivery vs. typical consulting disasters
Example: Discovery identified integration complexity (HIGH), built
in 15% contingency. Implementation took 17 weeks vs. 16 week plan
(within buffer). Without discovery: Would've planned 10 weeks,
actually taken 24 weeks.
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RETURN 5: Risk Mitigation
├─ Value: Identify risks before committing to full project
├─ Cost of hidden risks: Project failure, sunk costs
├─ ROI: Discovery may reveal project isn't feasible, saving $500K+
Example: Discovery revealed legacy system had no API (assumed it did).
Required rearchitecture before automation possible. Added 3 months
and $75K to plan. Without discovery: Would've discovered mid-project,
caused delays, cost overruns, finger-pointing.
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RETURN 6: Prioritization Framework
├─ Value: Focus resources on highest-impact problems
├─ Cost of wrong priorities: Solve low-value problems first
├─ ROI: Prioritized roadmap ensures value delivered quickly
Example: Team identified 12 problems. Discovery prioritized top 5
by ROI. Problem #1 had 6-month payback. Problem #7 had 4-year payback.
Without discovery: Might've tackled in wrong order.
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RETURN 7: Vendor/Technology Selection Guidance
├─ Value: Choose right tools based on actual requirements
├─ Cost of wrong tool: $100K software licenses + $200K implementation
wasted
├─ ROI: Right-fit solution from the start
Example: Company considering $150K/year enterprise platform. Discovery
revealed needs met by $30K/year mid-market tool + custom integration.
Saved $120K/year in perpetuity.
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RETURN 8: Organizational Learning
├─ Value: Team learns systematic problem-solving methodology
├─ Cost of no methodology: Ad-hoc decision-making, repeated mistakes
├─ ROI: Apply framework to future problems (compounding value)
Example: CS team learned quantification and root cause analysis.
Applied methodology to 3 other problems over next year (without
consultant). Organizational capability building.
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RETURN 9: Time Savings vs. Internal Approach
├─ Value: 6 weeks with expert vs. 6+ months fumbling internally
├─ Cost of delay: $127K per quarter in deferred benefits
├─ ROI: Faster time-to-value
Example: Company attempted internal discovery for 4 months (part-time).
Made little progress (lack of methodology, interrupted by day jobs).
Hired consultant: 6 weeks to actionable plan. Saved 3+ months =
$381K in deferred benefits.
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RETURN 10: Expertise and Pattern Recognition
├─ Value: Consultant has done this 20 times, you're doing it first time
├─ Cost of inexperience: Rookie mistakes, missed opportunities
├─ ROI: Best practices applied from day one
Example: Consultant recommended phased approach (learned from prior
failures). Company wanted big-bang. Followed consultant advice.
Phase 1 revealed issues, adjusted Phase 2. Big-bang would've failed
(50% probability per consultant experience).
═══════════════════════════════════════════════════════════════
TOTAL ROI CALCULATION:
═══════════════════════════════════════════════════════════════
Discovery Investment: $80,000
Direct Returns (Year 1):
├─ Enabled $435K project that delivers $862K benefits = 10.8× ROI
├─ Saved 3 months vs. internal approach = $381K deferred benefits avoided
├─ Prevented wrong solution ($350K CRM vs. $50K process fix) = $300K saved
├─ Realistic planning prevented overruns (saved 30% vs. industry avg on
$435K project) = $130K saved
TOTAL MEASURABLE VALUE (Year 1): $1,673K
ROI ON DISCOVERY: 2,091% (20× return)
Intangible Returns:
├─ Stakeholder alignment (priceless when you avoid political battles)
├─ Organizational learning (compounds over time)
├─ Risk mitigation (hard to measure what you prevented)
├─ Peace of mind (you're making informed decision with data)
═══════════════════════════════════════════════════════════════
THE REAL QUESTION ISN'T "CAN WE AFFORD DISCOVERY?"
THE REAL QUESTION IS "CAN WE AFFORD NOT TO?"
═══════════════════════════════════════════════════════════════
Scenarios:
WITHOUT DISCOVERY:
├─ Start implementation based on assumptions
├─ Assumptions wrong (50% probability)
├─ Project goes off rails
├─ 2× time, 1.5× cost, low adoption
├─ Total waste: $300K-$600K + 12 months
WITH DISCOVERY:
├─ Invest $80K upfront
├─ Get clear problem definition, realistic plan, stakeholder alignment
├─ Implementation goes smoothly (80% probability)
├─ On time, on budget, high adoption
├─ Total success: $862K benefits, 6-month payback
Expected Value of Discovery:
(0.80 × $862K) - (0.20 × $300K) = $629K
Expected Value WITHOUT Discovery:
(0.50 × $862K) - (0.50 × $450K waste) = $206K
Difference: $423K in expected value from $80K investment = 5.3× return
═══════════════════════════════════════════════════════════════
How to Budget for Discovery (and Get It Approved)
═══════════════════════════════════════════════════════════════
BUDGETING & APPROVAL STRATEGY FOR DISCOVERY ENGAGEMENT
═══════════════════════════════════════════════════════════════
STEP 1: Identify the Right Budget Source
─────────────────────────────────────────────────────────────────
OPTIONS:
A. DEPARTMENTAL BUDGET (Easiest)
└─ CS, Sales, Operations budget
└─ Typical authority: $50K-$100K depending on VP level
└─ Pro: Fast approval, single decision-maker
└─ Con: May be seen as "CS's project" not "company project"
B. TRANSFORMATION/INNOVATION BUDGET (Ideal)
└─ Often exists for strategic initiatives
└─ Requires exec sponsor (COO, CFO)
└─ Pro: Positions as strategic, cross-functional
└─ Con: Competitive (other projects vying for same budget)
C. IT/TECHNOLOGY BUDGET
└─ If framed as "systems improvement"
└─ CTO approval typically required
└─ Pro: Often larger budget available
└─ Con: May require ROI on technology specifically
D. CONSULTING/PROFESSIONAL SERVICES BUDGET
└─ Some companies have annual consulting allocation
└─ CFO/Finance typically manages
└─ Pro: Purpose-built for this type of engagement
└─ Con: May be exhausted (Q4 budgets often depleted)
RECOMMENDED: Start with departmental, escalate to transformation
if cross-functional impact identified.
─────────────────────────────────────────────────────────────────
STEP 2: Build the Business Case for Discovery
─────────────────────────────────────────────────────────────────
Don't just ask for $80K. Explain the return.
APPROVAL MEMO TEMPLATE:
┌─────────────────────────────────────────────────────────────┐
│ BUDGET APPROVAL REQUEST │
│ AI Implementation Discovery Engagement │
├─────────────────────────────────────────────────────────────┤
│ │
│ INVESTMENT REQUESTED: $80,000 (one-time) │
│ │
│ PURPOSE: │
│ Conduct comprehensive discovery to identify and quantify │
│ AI automation opportunities in customer onboarding process.│
│ │
│ CURRENT STATE PROBLEM (Evidence): │
│ • Onboarding takes 35 days (vs. 20-day industry standard) │
│ • CS team at capacity (can't scale without hiring) │
│ • 5% first-90-day churn (vs. 2% benchmark) │
│ • Estimated $1M+ annual inefficiency (rough estimate) │
│ │
│ WHY EXTERNAL CONSULTANT (vs. Internal): │
│ • Expertise: Done 15+ similar engagements │
│ • Objectivity: Cross-functional view, no political bias │
│ • Methodology: Proven framework (hotboxing, quantification)│
│ • Speed: 6 weeks vs. 6 months internal (part-time) │
│ │
│ WHAT WE GET (Deliverables): │
│ ✓ Quantified current state cost (defensible ROI model) │
│ ✓ Prioritized roadmap of top 5-7 improvement opportunities│
│ ✓ Detailed implementation plans for top 3 projects │
│ ✓ Resource requirements and realistic timelines │
│ ✓ Success metrics and measurement framework │
│ ✓ Executive presentation and recommendation │
│ │
│ EXPECTED OUTCOMES: │
│ 1. Clear decision: Proceed with implementation or not? │
│ 2. If yes: Realistic plan, budget, timeline for exec approval│
│ 3. ROI confidence: Defensible business case for CFO review │
│ 4. Stakeholder alignment: Cross-functional buy-in │
│ │
│ EXPECTED TIMELINE: │
│ • Week 1: Consultant selection and contracting │
│ • Week 2-7: Discovery engagement (6 weeks) │
│ • Week 8: Executive presentation and decision │
│ │
│ RISK IF WE DON'T DO THIS: │
│ • Continue with $1M+ annual waste indefinitely │
│ • Attempt implementation without clear ROI → likely fail │
│ • Miss 30% growth target (CS can't scale) │
│ │
│ EXPECTED ROI ON DISCOVERY: │
│ Conservative: Discovery enables $400K project delivering │
│ $600K annual benefits. Discovery ROI = 7.5× Year 1. │
│ │
│ REQUEST: Approve $80,000 from [Budget Source] │
│ │
│ DECISION DEADLINE: [Date - 2 weeks out] │
│ (Consultant availability limited, want to start Q1) │
│ │
│ Submitted by: [Your Name, VP Customer Success] │
│ Date: [Date] │
└─────────────────────────────────────────────────────────────┘
─────────────────────────────────────────────────────────────────
STEP 3: Anticipate and Address Objections
─────────────────────────────────────────────────────────────────
OBJECTION 1: "Can't we do this internally?"
RESPONSE: "Yes, but timeline is 6 months part-time vs. 6 weeks full-time,
and we lack the methodology and objectivity. Cost of delay: $250K in
deferred benefits. Net: External consultant is cheaper and faster."
OBJECTION 2: "That's expensive for just a study."
RESPONSE: "It's not a study, it's a decision package. We get quantified
ROI, detailed implementation plan, and stakeholder alignment. This
enables $400K+ project decision. Cost of wrong decision: $500K-$1M."
OBJECTION 3: "What if discovery reveals no opportunities?"
RESPONSE: "Then we saved $400K-$1M on implementing the wrong solution.
Discovery pays for itself by preventing waste. But realistically, we
know there are problems—question is how big and what to prioritize."
OBJECTION 4: "Why now? Can this wait until next year?"
RESPONSE: "Each quarter of delay costs $250K in continued waste plus
missed 30% growth (can't scale CS). Waiting until next year costs
$1M+ in deferred value. Discovery investment pays back in 1.2 months."
OBJECTION 5: "Can we do a cheaper/shorter discovery?"
RESPONSE: "Yes, we can do 3-week lite version for $45K. But you get
less comprehensive analysis, higher risk of missing key issues, and
no detailed implementation plans. Penny-wise, pound-foolish."
═══════════════════════════════════════════════════════════════
STEP 4: Timing Your Request
─────────────────────────────────────────────────────────────────
BEST TIMES TO GET APPROVAL:
✓ Q4 (before budget freeze): "Let's kick off discovery in Q1"
✓ After painful incident: "We just lost a big customer due to onboarding"
✓ Before board meeting: "We need this for strategic plan"
✓ Start of fiscal year: "Fresh budget, strategic priority"
WORST TIMES:
✗ Q4 budget freeze (too late)
✗ Middle of other major initiative (distracted execs)
✗ Right before vacation/holidays (no one paying attention)
✗ During crisis/firefighting mode (bigger priorities)
RECOMMENDED: Request approval 6-8 weeks before desired start date.
Gives time for procurement, consultant scheduling, stakeholder prep.
═══════════════════════════════════════════════════════════════
The Bottom Line: External Consulting Investment Summary
═══════════════════════════════════════════════════════════════
SUMMARY: EXTERNAL CONSULTING COST FOR AI DISCOVERY
═══════════════════════════════════════════════════════════════
TYPICAL INVESTMENT: $75,000 - $85,000 (fixed-price, 6 weeks)
PRICING RANGE BY COMPANY SIZE:
├─ Small (50-200 employees, single dept): $55K - $70K
├─ Mid-size (200-1K employees, cross-func): $75K - $90K ✓ Most Common
├─ Large (1K-5K employees, enterprise): $100K - $150K
└─ Very Large (5K+ employees, global): $175K - $250K+
WHAT'S INCLUDED:
✓ 6-week comprehensive discovery
✓ 25-30 stakeholder interviews
✓ 3-4 days of cross-functional workshops
✓ Detailed quantified business impact analysis
✓ Prioritized roadmap (top 5-7 opportunities)
✓ Implementation proposals for top 3 projects
✓ Executive presentation and materials
✓ 2 weeks post-engagement support
TYPICAL TEAM:
├─ Senior Consultant (Lead): 240 hours @ $175-$225/hour
├─ Analyst/Associate: 100-120 hours @ $100-$150/hour
├─ Partner Oversight: 16-20 hours @ $225-$350/hour
└─ Specialists (as needed): Variable
PAYMENT TERMS (Typical):
├─ 50% deposit upon signing (secures consultant availability)
├─ 25% at midpoint (Week 3)
├─ 25% upon completion (final deliverable)
└─ Some firms: 100% upfront or Net 30 from invoice
EXPENSES TYPICALLY EXTRA:
├─ Travel (flights, hotels, meals): $5K - $25K depending on locations
├─ Sometimes included in fixed price (verify)
└─ International travel significantly higher
ROI ON DISCOVERY INVESTMENT:
├─ Direct: Enables $400K-$1M project with 6-24 month payback
├─ Avoided waste: Prevents $300K-$500K wrong solution
├─ Time savings: 6 weeks vs. 6 months internal = $250K+ deferred benefits
├─ Risk mitigation: 80% implementation success vs. 50% without discovery
└─ Expected ROI: 5-20× return on discovery investment
BUDGET APPROVAL STRATEGY:
1. Quantify current state pain (even rough estimate)
2. Frame as enabling decision, not "just a study"
3. Show ROI on discovery itself (10-20× typical)
4. Request 6-8 weeks before desired start
5. Have 2-3 consultant options (competitive bids)
THE REAL COST ISN'T THE $80K YOU SPEND ON DISCOVERY.
THE REAL COST IS THE $1M+ YOU WASTE WITHOUT IT.
═══════════════════════════════════════════════════════════════
Recommended Addition to Your Website
I’d suggest adding a new section right after “The Deliverables” and before “Why This Methodology Works”:
═══════════════════════════════════════════════════════════════
SECTION TO ADD TO WEBSITE:
═══════════════════════════════════════════════════════════════
## Investment & Pricing
### What Does Discovery Cost?
We know you need to budget for this. Here's the straight answer:
**Typical Discovery Engagement: $75,000 - $85,000 (fixed-price, 6 weeks)**
This is a comprehensive, fixed-price engagement that includes everything:
- 25-30 stakeholder interviews across your organization
- 3-4 days of intensive cross-functional workshops
- 40+ hours of current state observation and analysis
- Complete quantified business impact assessment
- Prioritized roadmap with 5-7 improvement opportunities
- Detailed implementation proposals for your top 3 projects
- Executive presentation and comprehensive documentation
- 2 weeks of post-engagement support
### Why It Costs What It Costs
You're not just buying our time—you're buying 10+ years of expertise doing this exact type of work, proven methodology that consistently uncovers 6-20× ROI opportunities, objectivity that internal teams can't provide, and speed (6 weeks vs. 6+ months if attempted internally).
**The typical breakdown:**
- Senior consultant (240 hours): Deep expertise in AI implementation
- Analyst support (100-120 hours): Data analysis and documentation
- Methodology and tools: Proprietary frameworks and workshop materials
- Travel and logistics: On-site visits for workshops and observation
- Deliverables: Professional documentation and presentation materials
### Pricing by Company Size
- **Small companies** (50-200 employees, single department): $55K - $70K
- **Mid-size companies** (200-1,000 employees, cross-functional): $75K - $90K ← *Most Common*
- **Large enterprises** (1,000+ employees, enterprise-wide): $100K - $150K+
Complexity factors that affect pricing: multiple offices, international locations, regulatory requirements, technical complexity, compressed timelines.
### The ROI on Discovery
Here's the thing: Discovery isn't an expense—it's the highest-ROI investment you'll make.
**What you get for your $80K investment:**
1. **You avoid solving the wrong problem** (saves $300K-$500K in wasted implementation)
2. **You get the business case to fund the real solution** (unlocks $400K-$1M projects)
3. **You get realistic timelines and budgets** (prevents 2× cost overruns)
4. **You get stakeholder alignment** (89% adoption vs. typical 40-60%)
5. **You compress 6 months of internal fumbling into 6 weeks** (saves $250K+ in deferred benefits)
**Typical outcome:** Discovery enables a $400K-$600K implementation project that delivers $800K-$1.2M in annual benefits. That's 10-15× ROI on the discovery investment alone.
### What's Not Included
Discovery is about *deciding what to do*. These are separate engagements:
- ❌ Implementation execution (that's Phase 2, priced separately based on findings)
- ❌ Technology procurement or vendor selection
- ❌ Change management execution
- ❌ Ongoing advisory (beyond 2-week support window)
### How to Budget for This
**Where this typically comes from:**
- Departmental budget (VP-level authority)
- Transformation/innovation budget (strategic initiatives)
- IT/technology budget (systems improvement)
- Consulting/professional services budget
**Timing your request:**
Best to request 6-8 weeks before your desired start date. This gives time for procurement, our team scheduling, and your stakeholder preparation.
**Getting it approved:**
We'll provide you with a budget justification template that quantifies the ROI on discovery itself. In 10+ years, we've never seen a discovery investment not pay for itself within the first month of implementation.
### Payment Terms
Standard terms: 50% deposit (secures our availability), 25% at Week 3, 25% upon completion. Net 30 from invoice date for established clients.
### Next Steps
**Ready to discuss specifics for your situation?**
[Schedule a 30-minute consultation] ← Free, no obligation
We'll discuss your specific situation, provide a tailored proposal, and help you build the business case for getting this approved.
**Questions about pricing?** Email us at [email] or call [phone].
═══════════════════════════════════════════════════════════════
This gives prospects the transparency they need to budget properly while positioning discovery as a high-ROI investment rather than an expense. The key is being upfront about cost while emphasizing value.