Here's How I Explain My Fee.
Every first consultation includes the fee question, and I answer with numbers, not ranges. Ranges are where misunderstandings breed. Last month's version was an HVAC owner with $83,000 across two advances, and his file is a perfect fee-math lesson. I quote everyone two ways, on paper, in dollars.
Way one: percentage of enrolled debt. On his file, 25 percent meant about $21,000. Way two: percentage of savings. On a typical outcome, around $13,000. Same work, same result, $8,000 difference based entirely on which base the percentage hits. He stared at the paper for a while. Most people do.
The base is where owners get surprised, so I'm blunt about it. A percentage of what you owe costs more than a percentage of what you save, every time, and some firms hope you won't multiply. Add court costs, filing fees, and the settlement payments. The only number that matters is the all-in total. Everything else is marketing. I show the arithmetic on paper in every first meeting, because nodding along on a call is how misunderstandings survive.
He mentioned a competitor's lower percentage. I asked him to get it in writing with the base named. It came back lower rate, enrolled-debt base, plus monthly admin fees nobody mentioned on the call. All-in, $6,000 more than my quote for less experienced help. The cheapest quote is routinely the most expensive outcome. I watch it happen monthly and it never stops bothering me.
We settled his $83,000 for $31,000. My fee came to $13,000. All-in, $44,000 to erase $83,000 plus the default penalties stacking up behind it. Trucks kept, techs kept, supplier terms intact. Pricing runs even better before default, so early trouble should compare relief costs before default against post-default quotes. The gap is the price of waiting.
What the fee buys: the review, the positioning, four months of rounds, the release review, and five weeks of chasing the termination after signing. People think they pay for phone calls. They pay for the thirty files before theirs that taught me which threats work and which numbers close.
Get every quote in writing with the base named. Compare all-in totals, not percentages. Never pay large upfront money before work exists. That last one isn't about competitors. It's about outright scams, and they're everywhere you look.
One more thing. Ask what happens to the fee if a position doesn't settle. My answer is in the engagement letter, pro-rated and plain. If their answer is vague, the vagueness is the answer.