How Value Pricing Wins Clients

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These slides were prepared for a SXSW 2011 session on Value Pricing.

These slides were prepared for a SXSW 2011 session on Value Pricing.

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Transcript

  • 1. How did weimplement valuebased pricing?
  • 2. I’d like to talk about‣ Background‣ What we needed to understand before we could do anything‣ What we’ve implemented
  • 3. Before I begin‣ We’ve been working on this over a year and we are still figuring it out‣ It is amore a change in a way of thinking then it is a set of tools‣ It requires a lot of work to unlearn a way of thinking‣ It requires a lot of work to do something non standard
  • 4. We never trackedhours...
  • 5. But we did formour prices basedon hours
  • 6. Tim Williams (Ignition Consulting)
  • 7. 5 things we needed tounderstand‣ Price vs Cost‣ Discovering our incentives‣ Efficiency vs. Effectiveness‣ What clients are buying‣ How clients perceive us
  • 8. 1.Price vs. Cost
  • 9. Our costs do notlead our pricing
  • 10. 2.Understand ourincentives
  • 11. 3.Efficiency vs.Effectiveness
  • 12. 4.What are ourclients buying(what are we selling)
  • 13. 5.How our clientsperceive us
  • 14. 5 things we are doing1.Make pricing a skill2.Move from deliverables to outcomes3.Be creative in how we get compensated for what we do4.Present options to clients to understand what they value5.Get better at understanding the value we create