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