How to Price Projects: 10 Proven Strategies for Professional Services Teams

Pricing your projects shouldn’t feel like guesswork. Yet for many professional services teams, it often does. Between changing client expectations, evolving scopes, and pressure to stay competitive, pricing can feel complex, inconsistent, or even risky.

But when you have the right process and the right data, pricing becomes a strategic advantage. It’s how you protect margins, scope work with clarity, and build trust with clients from the start.

Today, many firms are exploring new models like value-based pricing; but according to the 2025 State of Professional Services Report, most still rely on time and materials. No matter your approach, the key is having a pricing strategy that’s rooted in how your team actually works and adaptable to the realities of each project.

In this guide, we’ll walk through 10 proven strategies for pricing projects more confidently. These recommendations are grounded in real project data, industry insights, and the practical experience we’ve built at Harvest helping thousands of teams track time and manage budgets more effectively.

If you’re looking to improve how you estimate, structure, and communicate your pricing, you’re in the right place. And if you want a deeper dive into how to scope and estimate projects more accurately, check out our Project Cost Estimation Guide.

1. Start with a Clear Scope of Work

Why this matters

No matter how thoughtful your pricing model is, it can’t succeed without a clear scope. Scope defines what work is being done, what success looks like, and what the team is committing to deliver. Without it, pricing becomes guesswork, and guesswork is where projects go off track.

Unclear scope leads to underestimation, scope creep, and client misunderstandings. On the other hand, a clear scope creates alignment, builds trust, and sets a strong foundation for accurate pricing.

How to do it well

• Align internally before pricing. Before presenting any numbers to a client, make sure your internal team is aligned on what’s included, who will do the work, and what assumptions you're making.
• Define deliverables, milestones, and known risks. Break the project into phases or checkpoints. Identify what’s being delivered at each stage and highlight any areas of uncertainty.

Set boundaries—what’s in vs. out of scope. Be explicit about what’s not included. For example, if content creation or additional revisions aren’t part of the estimate, say so. This clarity reduces confusion and protects your margins.

A well-scoped project is easier to price and easier to manage. With Harvest, you can track time against specific tasks or phases of a project, giving you real-time visibility into how scope aligns with effort. That way, you can spot overages early, adjust course when needed, and use what you learn to scope future projects even more accurately.

2. Choose the Right Pricing Model for the Project

Why this matters

There’s no universal pricing model that works for every project or every client. What works for a fast-turnaround web build might fall apart in a complex, multi-phase implementation. Choosing the right model ensures your pricing reflects the reality of the work, the needs of the client, and the level of risk your team is willing to take on.

More firms are experimenting with value-based pricing, but our findings show that most still rely on time and materials. Each model has its place; the key is using the one that fits your project and client best.

How to do it well

• Time & Materials: This model is still the most widely used, and for good reason. It’s flexible, transparent, and well-suited to projects with evolving needs. But it depends on strong scope management and accurate time tracking to keep budgets on track.
• Fixed-Fee: Clients often like fixed-fee pricing for its simplicity and predictability. But unless your estimates are solid and the scope is tight, it can put your margins at risk. Use historical data to inform your pricing, and build in buffers where uncertainty exists.
• Value-Based: This model ties pricing to outcomes or business impact. It can be highly profitable and build strong client partnerships but it requires deep understanding, mutual trust, and clear metrics of success. It's best for strategic, high-impact work where your value far exceeds your hours.

Whatever model you choose, time tracking still matters. Harvest helps you monitor the real effort behind every engagement whether you're billing hourly or not. That insight is essential for evaluating pricing performance and evolving your strategy over time.

3. Track Time, Even if You Don’t Bill For It

Why this matters

Even if you’ve moved away from hourly billing, time is still your most valuable data point. Without tracking how it’s being spent, by whom, on what, and when, you’re left guessing when it comes to pricing future work, managing project profitability, or understanding team capacity.

Time tracking isn’t just for invoicing. It’s a critical part of learning how your business actually operates, uncovering patterns, and making pricing decisions that are rooted in reality, not assumptions.

How to do it well

• Track hours by task, role, and phase. The more granular your tracking, the more insights you can extract. Look beyond total hours and examine which roles are contributing most—and where the work is concentrated.
• Review reports often, not just at project close. Time data is most useful when it’s timely. Use it during the project to monitor budget burn and spot overages early. Post-project, it becomes a blueprint for future pricing decisions.
  
  

Whether you bill by the hour, by the project, or by the outcome, Harvest helps you understand the real time investment behind your work. With easy-to-use tracking and powerful reporting, you can turn time data into smarter scopes, more accurate pricing, and stronger project performance over time.

4. Use Past Projects to Guide New Estimates

Why this matters
No two projects are exactly the same, but the patterns in your past work are some of the most powerful tools you have for pricing future ones. Looking back at what actually happened; how long tasks took, where you under- or over-estimated, and how budgets tracked, can help you price more accurately and avoid repeating mistakes.

Too often, teams start from scratch with each estimate. But your project history contains real data on scope, effort, and outcomes. The key is putting that data to use.

How to do it well

• Review actuals vs. estimates from similar projects. Start by comparing planned hours or budgets with what actually happened. Where did the work expand? Which phases ran long? Where did you come in under budget?
• Build pricing models around real patterns. Instead of relying on best guesses, use trends from past projects, like typical hours by phase or average time per deliverable, as a baseline for new proposals.
  
  

Harvest’s reporting tools help you surface historical insights quickly and clearly. You can filter past projects by client, service type, or team member to see what really happened, then turn those insights into better pricing and more confident estimates moving forward.

5. Factor in Team Capacity and Availability

Why this matters

Even the most accurate estimate can unravel if it doesn’t match your team’s real capacity. It’s not just about how long something should take, it’s about who’s available to do the work, when, and alongside what other commitments.

When pricing projects, it’s easy to plan in abstract hours. But pricing that’s disconnected from actual availability can lead to overpromised timelines, overworked teams, and unplanned subcontractor costs. Capacity is the bridge between your estimates and your reality.

How to do it well

• Plan by person, not just hours. Don’t assume hours are interchangeable across roles. Who does the work, and how experienced they are, affects both timeline and cost. Assign estimates based on actual team members, not theoretical averages.
• Use capacity reporting to balance workloads. Look across your team’s commitments to make sure you’re not pricing work your team can’t realistically deliver. If availability is tight, adjust the timeline or the budget.
  
  

Harvest's companion product, Forecast, helps you tracks your team's capacity and plan staffing needs in advance, so you can identify over-utilized teammates and adjust accordingly for future projects. 

6. Account for Internal Costs and Margins

Why this matters

It’s easy to focus on direct labor when pricing a project, but it’s not the whole picture. Admin hours, tools, software, overhead, and benefits all contribute to the real cost of delivering your work. And just because a project covers costs doesn’t mean it’s profitable.

If you’re not actively building margin into your pricing, you’re likely eroding your profitability without realizing it. Every project should contribute to your business’s financial health, not just keep the lights on.

How to do it well

• Include indirect costs. Factor in time spent on client communication, internal meetings, tools and subscriptions, and benefits, not just billable hours. These hidden costs can add up quickly.
• Set target profit margins per project type. Build your margin into your estimate from the start. Whether it’s 15% or 50%, your profit shouldn’t be what’s left over, it should be planned for intentionally.
  
  

When you use Harvest to track all the time that goes into a project, not just client-facing work, you get a clearer picture of your true costs. That insight helps you price projects that not only break even but actively support your business’s growth.

7. Find the Right Rate for Your Team

Why this matters

If your hourly rates are based on what competitors charge, or what you think the market will bear, you’re working with a shaky foundation. The most reliable way to set sustainable rates is to start with your actual costs. That includes salaries, benefits, overhead, and the margins you need to stay profitable.

When you build your rates around internal data, you’re covering your expenses while still creating room for your business to thrive.

How to do it well

• Use internal data to define your baseline. Factor in total compensation (not just salary), overhead costs (like software, rent, or equipment), and administrative time. This gives you a true picture of what it costs to keep each role productive.
• Set tiered rates based on role or experience. Senior team members often bring more efficiency or strategic value; your pricing should reflect that. Consider creating rate bands by title, experience level, or service type.
  
  

To make this process easier, we’ve developed a tool to help you calculate sustainable, data-informed hourly rates for your team. Check out our Hourly Rate Calculator, powered by anonymized data from thousands of businesses in the US. 

8. Build Flexibility Into Your Pricing

Why this matters

While your internal costs and estimates are essential, how you present pricing to clients can shape their perception of value, trust, and choice.

Flexibility doesn’t mean being vague or compromising your margins. It means offering structure that gives clients confidence and helps you win the work without giving away your time.

How to do it well

• Offer multiple pricing tiers or options. When possible, present 2–3 scoped options. This lets clients choose a level of service that aligns with their needs and budget, and positions your middle or top-tier option as a clear value.
• Consider hybrid models. Fixed-fee discovery paired with T&M implementation. Retainers with project-based add-ons. Milestone-based payments that align cost with progress. These approaches give you control while keeping pricing aligned with real project flow.
  
  

Flexible pricing still needs firm tracking. With Harvest, you can monitor time and costs across project phases, making it easier to adapt your pricing strategy without losing sight of profitability.

9. Communicate Pricing Clearly to Clients

Why this matters
Even a perfectly scoped, accurately estimated project can get derailed if the pricing isn’t clearly communicated. Clients don’t just want a number, they want to understand what they’re paying for, why it costs what it does, and what outcomes they can expect.

Clarity in pricing builds trust, prevents disputes, and sets the tone for a transparent, collaborative working relationship.

How to do it well

• Break down costs into language clients understand. Instead of just listing hours or line items, frame your pricing in terms of phases, deliverables, or outcomes. Help them see how the work aligns with their goals.
• Be proactive about explaining value—not just inputs. Don’t just talk about what the project includes. Talk about what it will help them achieve. If you're using a premium rate, explain the efficiency, expertise, or reliability that comes with it.
  
  

Harvest makes it easy to create detailed time reports and visual estimates that support your pricing with real data. Whether you’re breaking down a fixed fee or justifying a time-based budget, clear, professional documentation helps your clients feel confident moving forward.

10. Reevaluate Your Pricing Strategy Regularly

Why this matters

Your pricing strategy is a living part of your business. As your services evolve, your team grows, or client needs shift, your pricing should keep pace. If you’re not reviewing your pricing regularly, it’s easy to fall behind market rates or continue with models that no longer reflect your value or costs.

How to do it well

• Set a quarterly or biannual pricing review. Make it a recurring part of your business rhythm. Look at recent projects: Where did you over-deliver? Where did margins fall short? What changed about your process, tools, or team?
• Look at profitability trends across client types or project sizes. Patterns often emerge; certain industries may consistently push scope, or certain project types might be underpriced. Use that data to fine-tune how you price in the future.
  
  

With Harvest, your time and cost data supports individual projects and gives you a high-level view of what’s working across your business. Set a reminder each quarter to review your reports, track profit trends, and adjust your pricing strategy with confidence.

Try this: Set a recurring calendar reminder every 3–6 months to review your pricing data in Harvest. Treat it as a routine check-in; not a reaction to a missed margin.

Pricing Is a Process, Not a One-Time Decision

Pricing is building a system that reflects how your business really works. That system takes shape through clear scope, time tracking, and insights drawn from real project data. When those pieces come together, you can price projects with more confidence, clarity, and consistency.

Whether you’re refining how you estimate, experimenting with new models, or just trying to protect your margins; make pricing part of your process, not just a step in a proposal.

Ready to take the next step?

1. Dive into the 2025 State of Professional Services Report for more data on how firms are pricing and managing projects today.
2. Check out our Hourly Rate Calculator, designed to help you set smart, data-backed rates for your industry. 
3. Start a free trial with Harvest to track time, scope smarter, and price better—with tools built for professional services teams.