A few months back, I was reviewing a project case study from a professional services firm. The project was delivered on time. The client was happy. The team worked hard. Still, the final review ended with one uncomfortable question.
"Why did this project make less money than we expected?"
That question is far more common than many firms say. Most professional services businesses set clear pricing for their services. However, pricing often feels disconnected from how work actually happens. And there is a gap between what was sold, what was delivered, and what was billed. Over time, those gaps turn into margin loss.
Dynamics 365 helps close those gaps by keeping pricing tied to real work, real costs, and real decisions across the business.
In this article, let’s explore how Dynamics 365 helps services firms solve pricing problems.
Fixing Pricing That Has Grown Inconsistent Over Time
In some service-based firms, the way they charge isn’t very organized. For example, new clients sometimes receive discounts, bug fixes handled by senior employees are charged at a higher rate, and long-term clients often have agreements just in emails, not in the official systems.
Over time, when it comes to making important decisions regarding the firm’s activity and profitability, organizing and getting accurate information will be very hard for them.
In this case, Dynamics 365 helps them to organize and maintain the workflow and pricing structure based on the situations.
With Dynamics 365, pricing can change depending on:
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Who is working on the project (role)
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Level of experience
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Client contract type
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Project location
As a result, the price stays the same from the first quote to the final bill. This tool records entire agreements and changes to provide clear insights when management teams want a complete report. So, they can understand the activities better and make better decisions. This saves time and helps them think about profitability.
Aligning Project Pricing to Match True Project Value
Many companies set pricing for projects based on outdated assumptions. This approach may work in the early stages, but as they scale, it is no longer effective because they hire new teams, work with clients who have higher expectations for projects, and several other reasons.
With Dynamics 365, firms can set prices for new projects based on actual past performance. It looks at similar projects, effort patterns, and cost structures. Instead of guessing the best-case scenario, pricing will be set based on how work really happens in the organization.
This approach doesn’t make pricing too low. It makes your firms and its operations trustworthy. And being trustworthy is what keeps profits safe over time.
Protecting Project Margins When Scope Expands or Changes
Scope changes are part of professional services. What causes damage is when pricing remains frozen while effort keeps expanding.
Dynamics 365 connects scope adjustments directly to project financials. When additional work enters the picture, its cost and margin impact becomes visible immediately. This visibility creates accountability. So, teams can decide whether to absorb the change, rebalance delivery, or revisit pricing with the client.
If prices don’t reflect changes in project work, small additions can slowly lower the company’s margins.
Makes Every Discount a Thoughtful Business Choice
Discounting is not a flaw. Unexamined discounting is.
In many firms, discounts are applied to win deals but are rarely reviewed after delivery. Over time, they become normalized, even when they consistently reduce profitability.
Here, Dynamics 365 helps businesses track discounted engagements alongside delivery outcomes. So, management teams can see which discounts led to long-term value and which ones simply increased workload without improving returns.
This insight changes how pricing conversations happen in future deals, without turning sales into a numbers-only exercise.
Using Time Data to Make Smarter Pricing Decisions
Time tracking often suffers from delayed entry or approximation, especially in busy delivery environments. When this data feeds pricing analysis, the conclusions are flawed.
Dynamics 365 integrates time tracking directly into project workflows, aligning entries with pricing rules and roles. This produces cleaner data that reflects how much work is truly distributed across teams.
Remember: Accurate time data strengthens future pricing decisions without adding administrative burden.
Making Pricing Decisions That Truly Reflect Costs
Costs are often not considered when setting project prices. They are usually only reviewed at the time of billing. Expenses such as travel, tools, and third-party services are treated as operational details, not as factors that influence pricing.
Dynamics 365 connects these expenses directly to projects and applies billing rules consistently. Both billable and non-billable costs can affect a project’s profitability, either directly or indirectly, during the delivery.
When a company has better visibility in costs, it can set more accurate prices. Always remember this: without understanding costs first, improving pricing and running a profitable business for a long time is not possible.
Now, you have understood an overall picture of how Dynamics 365 solves pricing problems for professional services companies and improves their operations. However, some of you might be confused like…
Is Implementing Dynamics 365 For Services Firms the Right Choice?
Yes. Dynamics 365 is the right choice because it integrates your CRM and ERP into one system.
For professional services, you shouldn't choose between them—you need both to work together:
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CRM (The Front Office): Helps your sales team win deals and manage client quotes.
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ERP (The Back Office): Helps your finance team track actual costs, hours, and billing.
Dynamics 365 integrates CRM into the ERP to provide accurate data to track operations and make pricing decisions.
If you want to stop losing money and see your real profit in real-time, Dynamics 365 is the right move. It puts your entire firm on one single page.
Related Article: Why Hire a Dynamics Implementation Partner for a Smooth Setup?
Who Are the Best Dynamics Implementation Partners for My Business?
Microsoft’s authorized Dynamics implementation partners are mostly considered the best ones to integrate the Dynamics solution for your business. You can hire any official implementation partners in your city based on your preference.
For example, let’s say your business is operating in Dubai, then you can hire an Authorized Microsoft Dynamics Implementation Partner in Dubai, like Cherrie Business Solutions. They have years of experience in providing 100% customized ERP and CRM solutions for your business and have built a strong reputation as the best Dynamics implementation partner across Dubai and the UAE.
Final Summary
Pricing problems in professional services are rarely caused by a single mistake. They develop gradually when pricing decisions are separated from delivery reality and cost visibility.
Dynamics 365 solves these problems by creating continuity across sales, project execution, and finance. Pricing becomes consistent, measurable, and adaptable, supporting both profitability and growth.
For professional services businesses, this improvement is more than just technology. It gives a real advantage in how the business is organized.