Information Security Consulting Research Paper

Information Security Consulting
  Information Security Consulting

Information Security Consulting

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Information Security Consulting


The main responsibility of an information security consultancy firm is to monitor, analyze, translate, and decode data for both foreign and counter foreign objectives. The firm has the mandate to protect systems that deal with both communication and information and belong to the US government. These systems are protected against hacking and unauthorized entries. It does all these activities while maintaining high levels of confidentiality. Some of these secret activities involve placing bugs to collect data. It also destroys and intercepts data using complex software and algorithms. The firm, however, does not have any authority in conducting human intelligence. This function is run by government agencies like the FBI and the CIA (McAvoy, 2010). In the US, the information security consulting industry is stable and growing fast. The occurrences of security breaches in the US gives investors confidence in investing in the country’s information security industry. The industry has faced a tremendous upward growth with estimates close to fifteen percent over the last decade. Within the next half decade, the securities companies expect a growth rate of over ten percent. To enjoy this enabling business environment in information security, firms have to come up with efficient pricing strategies. This move coupled with good product marketing will assist the company to enjoy maximum profits in the already lucrative industry (Winkler, 2011).

KOPSS’ pricing strategy

Pricing is one of the major elements in marketing that KOPSS, an information security consulting company,must be conscious. The price of a product proves an important factor because it relates to where the product will be positioned in the market. The price also has effects on promotion, product features, and channel divisions that are also key elements of the market mix. A pricing strategy can, therefore, be described as an action plan to come up with pricing objectives. Such strategies are essential when marketers such as KOPSS are setting prices for their goods and services. There are numerous ways for the marketers to set prices for various products. The products may be new in the market or may have been existent in the market (Wasserman et al., 2009).

KOPSS can adopt couple of strategies for setting prices for new products to ensure that they remain competitive in the market. These are penetration pricing or skimming prices. They can be used simultaneously or each used alone and calculation done for a set duration of time. Price skimming is where they charge the highest price for the product. This price is usually for a short duration when the new product that is either innovative or improved is launched into the market. The key objective is to get the most out of client that are willing to pay extra for the product within the shortest time possible. However, the price is lowered once the product has settled into the market, or its demand has fallen. Penetration pricing, on the other hand, is setting a lower price for the product during the initial market introduction period. The key aim of this move is to establish and maintain a market share for the product fast. The seller’s aim is to discourage their competitors from market entry by establishing a large market share within the shortest time possible (Cohen, 2011).

New Information Security Consultancy firms often make an initial mistake of setting very low prices for their products. They often fall for this move because most of their competitors do not divulge their trading prices. Another reason could be that new consultants have a relatively low number of clients. This reason could be due to the minimal barriers to entry into the industry. They also have to compete with industry giants like McKinsey and Co. The small companies like KOPSS, therefore, compete for clients by offering lower product prices than their established competitors. Many of these new consultants are usually oblivious of the production and operating costs in their businesses. These consultants are in most cases unable to pay bills. The companies may also be unable to raise their prices in the future due to their initial product pricing. This scenario happens when they fail to convince their clients fully on the quality of their services. Product prices are varied by the location and the industry they are targeting. However, a methodology commonly used to come up with a pricing structure exists. This methodology creates an attractive price to both KOPSS and its potential customers (Lassiter, 2010).

KOPSS has its own pricing strategy that has contributed to its success. One of the strategies is penetration, especially when the company is focusing on winning over new customers. The charges are low when the company enters a new market. It has also maintained low prices on its services as a strategy to retain its customers and win over new customers. The prices areaffordable coupled with flexible payment options offered through its state of art services. The company focuses on the most important aspects or services and this has enabled it to manage its costs effectively compared to other players in the industry. It also negotiates for competitive prices for its innovative hardware and software technological products something that keeps its administrative and operating costs low. This therefore, ensures continuous provision of quality services and products to its customers at affordable prices at the same time.

The pricing of the company also puts into consideration the location of the agency. Agencies in the urban or coastal areas charge relatively higher prices than their counterparts in other geographic and demographic locations. It does not come as a surprise to realize that the name and expertise of the company determine the pricing of their products. More experienced companies charge higher than the newbies in the industry (Weiss, 2011).

It is common for most consultants in the information technology to charge hourly. Some high-level consultants, on the other hand, charge according to the entire project. Accountancy, Law and wealth managers also charge on an hourly basis (Weiss, 2011). New arrangements are typically more viable and agreeable to charge on an hourly basis. This arrangement is also easier to manage. On deciding the amount to charge, high-end consultants ask for the steepest fees. Due to the level of secrecy in consultancy prices in the market, deciding the actual amount to charge is very tricky. Most consultants, therefore, set a price for their products by doubling or tripling the average hourly rate charged by similar consultants (Wasserman et al., 2009). As mentioned earlier, KOPSS charges will vary and the charges will only be negotiated in case other products or services are innovative.

Some firms use a daily rate to come up with the price of their products. The daily rate can be randomly selected after looking at the cost of operations and the profit margin expected. The hourly rate can also be decided by multiplying the hourly rate determined above and then multiplying with the number of working hours. Daily rates may seem expensive to clients if they are randomly selected. However, a factor of the hourly rate is an acceptable way to charge for consulting services in the information security industry (Weiss, 2011).  KOPSS, however, does not use this pricing strategy.

Information security consultants can set their product prices according to a set project. They first have to estimate the number of hours they think they will spend on the project. The number of hours is then factored into the hourly rates the company has uses. Some consultancy firms can set the prices depending on how much money their clients will make from the services they offer. This method takes a certain percentage of the benefits accrued by the company resulting in the consultant’s advice (Lassiter, 2010). KOPSS should consider using this strategy as it would give it a wider dimension when consulting for other companies.

KOPSS may decide to receive payment for their services by accepting a share of the client’s future profits or commissions. Here, the consultancy will be pushed to receive payment according to their level of performance. Some clients may offer the firm a commission on the service performance benefits based on the results of the work done by the consultant. This pricing strategy is, however, risky. The client’s performance may directly affect the manner in which KOPSS works resulting to underperformances. The client may also not be fully cooperative to adhere to the consultants recommendations. The company, however, has not adopted this strategy when deciding the amount to charge for its services.

KOPSS may make the decision to use real-time data when determining the amount to charge a client. The data may involve checking the client’s bad debt rate where a client with a higher rate of accruing debts is given stricter payment terms. A payment structure can also be set by using the number of actual working hours. A working and competitive structure cut costs to some amount on the hours the consultant may be paid for just being present and doing nothing. The consultant may also charge for the actual days that they have to work and leave out days they are not actively working for the client (Lassiter, 2010). However, KOPSS may find this strategy expensive and time consuming. Data collection may prove expensive and strain the company’s small operational costs even further.

The consultancy may also decide to charge what all other consultancy firms are charging for their services. This way the firms compete on the quality of services they offer to get clients rather than charging discretely. KOPSS has adopted this strategy in part, as it focuses on quality services but charged at an affordable price. This strategy can only be possible where the rates are open to all. However, this is not often the case, as most consultants to client rates are kept confidential (Winkler, 2011).

A more viable long-term strategy would be to settle for a price that represents the kind of service the firm offers. Such a strategy allows the firm to move from the limitations of hourly charges to a more open scope in business (Cohen, 2011). KOPSS pricing strategy is actually essential in enabling it achieve its goals. Even though the prices are low, the quality of services is high. It is also able to negotiate for higher prices on products and services that it deems innovative, something that helps it mange its costs.


Coming up with an initial pricing strategy may seem difficult at first for an Information Security Consulting Services such as KOPSS. However, once a working strategy that is attractive to both the company and the clients has been designed, then the business is ready to grow. KOPSS can occasionally revise its pricing strategies by considering experience, feedback from clients, and the activities of its competitors. Regardless of how it chooses to set its consultancy fees, the pricing structure, and contract agreement have to be followed to the latter. KOPSS indeed has adopted a low price strategy as well as negotiated strategy that has enabled it to remain competitive in the market. It offers quality products and services that meet the threshold of its customers too.


McAvoy, N. (2010). Coded messages: How the CIA and NSA hoodwink Congress and the people. New York: Algora Pub.

Winkler, V. J. R. (2011).Securing the Cloud: Cloud Computer Security Techniques and Tactics.Burlington: Elsevier Science.

Lassiter, P. (2010). The new job security: The 5 best strategies for taking control of your career. Berkeley, CA: Ten Speed Press.

Cohen, W. A. (2011). How to make it big as a consultant.New York: AMACOM.

Wasserman, P., McLean, J. W., & Gale Research Company.(2009). Consultants and consulting organizations directory. Detroit, Mich: Gale Research Co.

Weiss, A. (2011). The consulting Bible: Everything you need to know to create and expand a seven-figure consulting practice. Hoboken, NJ: Wiley.

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