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3 min · HIRING & VETTING

The consultancy playbook

Understanding how digital consultancies actually run their business is the first step to protecting yourself from inflated proposals and unnecessary complexity.

On this page
  • How consultancies actually price projects
  • Common overselling tactics
  • What good consultancies do differently
  • Red flags to watch for
Updated 2026-04
TL;DR
  • Danish senior consultants are billed at 1.250–1.500 DKK/hour. Cost to the agency is roughly half of that.
  • The margin is normal. The hidden architecture choices that turn a one-time build into a five-year retainer are the real cost.
  • Complexity is profitable for the agency, expensive for you. Simple solutions don't generate enough billable hours.
  • A transparent shop names its rate per role, gives you a fixed scope, and writes down the handover plan in the proposal.
  • Vague specs, technology buzzwords, and resistance to fixed-price contracts are the three reliable red flags.

How consultancies actually price projects

In Denmark, a senior developer is typically billed to the client at 1.250–1.500 DKK/hour (~ EUR 170–200) on a time-and-materials engagement. Their fully loaded cost to the agency is roughly 600–750 DKK/hour. The gap pays for the people you don't see on your project: sales, account management, designers between contracts, the partner who reviewed the statement of work, the office, and the bench.

That ratio is not the scandal. It is industry standard, and it is fine. The scandal is what gets layered on top of it. Project estimates are padded with "contingency" that rarely gets returned. The incentive structure is clear: longer projects mean more revenue. Complexity is profitable. Simple solutions don't generate enough billable hours to keep three roles staffed for six months.

When you read a Danish agency proposal, the line items you can see (developer hours, design hours, project management) are negotiable. The ones you can't see — the architectural choices that guarantee you'll keep paying after launch — are the ones that matter.

Common overselling tactics

  • Microservices for everything. Breaking a simple application into a dozen services that require orchestration, monitoring, and a specialist to operate. You pay for the build and then for the operations forever.
  • Custom solutions for solved problems. Building from scratch what an existing tool, framework, or off-the-shelf SaaS handles in a weekend. The bespoke version is more billable hours, not better software.
  • Premature optimization. Architecting for a million users you won't reach for years, if ever. The infrastructure bill arrives in month one, the users in month forty-eight.
  • Technology tourism. Using the latest trendy framework because it's interesting on the agency's CV, not because it's appropriate for your problem. Your team inherits the maintenance.
Complexity is profitable for the agency. It is expensive for you, forever.

What good consultancies do differently

The best Danish shops start with your business goals, not their preferred tech stack. They recommend the simplest solution that meets the requirement you actually have today, with a clear path to the requirement you might have tomorrow. They are transparent about trade-offs and honest about what you don't need.

You can spot them in the proposal stage, before any money has changed hands: fixed scope or capped time-and-materials with a written change-order process, specific examples of what is and is not included, named people on the build with rates per role, and a handover plan that doesn't require their retainer to use.

Red flags to watch for

  • Vague specifications with "we'll figure it out as we go" promises.
  • Proposals that lead with technology buzzwords instead of business outcomes.
  • Resistance to fixed-price or milestone-based contracts.
  • Lack of similar project examples or references they will let you call.
  • Pressure to start immediately, without a written discovery phase.
  • A blended rate that hides who is actually doing the work.
  • No handover plan, or a handover plan that requires their team to read the documentation to you.
What to actually do
  • Treat the markup as fine. Negotiate the architectural lines that turn into recurring invoices.
  • Demand a fixed scope or a capped engagement before any code is written.
  • Ask for the rate per role, not a blended rate. Then ask who, by name, will work on it.
  • Insist on a written handover plan as a deliverable, not a phase two.
  • If a proposal can't survive four uncomfortable questions in the sales call, it can't survive twelve months in production.

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