Value-Based Pricing for Compliance
Compliance services should be priced based on the value delivered — not the time spent. The value of compliance advisory is measured in penalties avoided, lawsuits prevented, and peace of mind delivered. A client who avoids a $100,000 COBRA class action settlement because of your guidance received $100,000 in value — regardless of how many hours you spent.
| Service | Hourly Pricing | Value-Based Pricing | Value Delivered |
|---|---|---|---|
| Annual compliance audit | $150/hr × 10 hrs = $1,500 | $3,500–$7,500 | Identifies gaps before DOL does; prevents penalties |
| MHPAEA comparative analysis | $150/hr × 20 hrs = $3,000 | $5,000–$15,000 | Prevents DOL enforcement; avoids $100/day penalties |
| Compliance calendar service | $150/hr × 5 hrs = $750 | $1,500–$3,000/year | Prevents missed deadlines; avoids $110/day penalties |
| COBRA process review | $150/hr × 8 hrs = $1,200 | $2,500–$5,000 | Prevents class action exposure; avoids $110/day penalties |
The Compliance Advisory Retainer
A compliance advisory retainer provides clients with ongoing access to compliance guidance for a fixed monthly or annual fee. The retainer typically includes a compliance audit, compliance calendar service, quarterly check-in calls, and unlimited compliance questions. Retainers typically range from $5,000–$25,000 per year depending on employer size and complexity.
Communicating Value
Pro Tip
The most effective way to communicate the value of compliance advisory is to quantify the risk of non-compliance. "The penalty for a late COBRA election notice is $110/day per qualified beneficiary. For a company your size, a single systemic COBRA failure could result in $500,000 in penalties. Our compliance advisory service costs $5,000/year. The ROI is 100:1." This framing makes the value of compliance advisory concrete and compelling.