TZL 1305

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O P I N I O N

Avoid commoditization

Learn from attorneys, business advisors, and other professional service providers on how to avoid commoditization in the AEC industry.

F irms struggle daily with the fact that much of the work in this industry is commodity-driven. While there is talk of specialization or differentiation, the reality is that the majority of work performed by typical design firms is not specialized and the related fees are subject to market pricing. Asking what the market will bear is the primary question instead of what the true value of your services is.

Stephen Lucy

questions thrown your way. This requires actively stepping into that client’s space – leaning into it in order to actively try to change the environment. While we don’t control the environment, we can help to direct it. You still have to deliver technical expertise, but you “Embrace generational changes, become more adaptive, reinvest in your firm, and be willing to challenge the status quo. A little change will do us all good.”

If asked how to avoid commoditization, typical responses for our industry are to specialize, differentiate, and diversify. These are all valid approaches and have worked well for many AEC firms. However, we should also look outside our industry to gain a broader perspective. We bemoan that attorneys, business advisors, and other professional service providers charge so much more than us, but we still pay their fees. Why is that and what can we learn from them? ❚ ❚ Become a trusted advisor. We are a service indus- try and the highest level of service you can provide is to become a trusted advisor to your clients. This transcends being an engineer or an architect as it means you are proactively helping your client achieve their goals and not just responding to

See STEPHEN LUCY, page 5

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THE ZWEIG LETTER July 22, 2019, ISSUE 1305

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