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Pricing Professional Services

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In this presentation on “Pricing for Service Professionals”, Helen advocates “value pricing” for professional services. This pricing model begins with defining what constitutes a professional and what …

In this presentation on “Pricing for Service Professionals”, Helen advocates “value pricing” for professional services. This pricing model begins with defining what constitutes a professional and what exactly is it that they are selling. The end result is a client who knows what value you have added to their business, and who is happy to pay for that.

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  • 1. Pricing for Professional Services Helen Cousins for2011 © Copyright Helen Cousins, Xcel Business Solutions 2011
  • 2. What is a Professional?29.11.11 2
  • 3. What do you value in a doctor?29.11.11 3
  • 4. What do you value in a film?29.11.11 4
  • 5. What do you value when raising equity? 29.11.11 5
  • 6. Do you care how long it took… … to perform a successful surgical operation? … to make your favourite film? … to successfully raise equity to fund your company?29.11.11 6
  • 7. Is time the “value add”?29.11.11 7
  • 8. What are you selling? This reminds me… Hourly Hours Rate Fee € € To Professional Fee 55 €150 €8,250 of this… Unit Quantity Price Total € € Kitchen sinks 55 €150 €8,25029.11.11 8
  • 9. If you sell hours… … aren’t you training your clients to value hours? … why won’t your client just buy the cheapest hours? … what differentiates you from other professionals?29.11.11 9
  • 10. We’ve all got 24 hours per day29.11.11 10
  • 11. We’ve all got 24 hours per day29.11.11 11
  • 12. Are all hours equal … = … in the context of professional services?29.11.11 12
  • 13. Pricing is a function of Marketing Product Price Promotion Place29.11.11 13
  • 14. Value Pricing Sell knowledge, not time Results focused, not time obsessed Fixed price contracts Remove risk from client Price by client Scope your work carefully29.11.11 14
  • 15. Articles on Pricing Article Published on Why Business Pricing Can’t be Personal Own Blog Your Business, Your Price - Do you value YOUR Own Blog Brand? Pricing for Profit – Pitching Your Price through Own Blog Innovation Pricing for Profit. [Part 1] Bloggertone Pricing Vs. Costing [Part 2] Bloggertone Pricing as a Process [Part 3] Bloggertone Pricing for Professionals [Part 4] Bloggertone How to Improve Your Profit Margin All About Business (BOI) The Devil is in the Discount All About Business (BOI)29.11.11 15
  • 16. Connect with Xcel Business Solutions Helen Cousins29.11.11 16