PBM Advisory Pricing Models
| Model | Structure | Best For | Typical Range |
|---|---|---|---|
| Project fee | Fixed fee for defined deliverable | Audit, RFP management, biosimilar strategy | $10,000–$75,000 |
| Performance fee | Fee based on documented savings | PBM RFP; cost management initiatives | 10–20% of first-year savings |
| Annual retainer | Fixed monthly fee for ongoing services | Ongoing PBM management | $2,000–$8,000/month |
| Hybrid | Base retainer + performance bonus | Long-term strategic partnerships | Base + 10–15% of savings |
Value-Based Pricing
Value-based pricing anchors fees to the value delivered. "Our PBM RFP management fee is $40,000. Based on your current pharmacy spend, we expect to deliver $400,000 in annual savings — a 10:1 return on your advisory investment." This framing makes the fee feel like an investment, not a cost. Clients who understand the value will pay for it.
Performance Fee Structure
Pro Tip
Performance fees — fees contingent on achieving defined savings targets — align advisor incentives with client outcomes and are compelling to cost-conscious clients. Structure performance fees as a percentage of first-year savings: "Our fee is 15% of documented first-year savings. If we save you $500,000, our fee is $75,000." This structure is easy for clients to justify and creates strong advisor incentives to deliver results.