This document discusses the importance of pricing services based on the value provided to customers rather than costs. It argues that the default purpose of marketing should be to increase profits, not just sales, and that profit is driven mostly by price. The document provides a 7-step framework for implementing value-based pricing including having conversations with customers about their objectives, forming a value council, developing pricing options, and conducting after-action reviews. It discusses using various pricing models like fixed fees, outcome-based agreements, and royalties. The overall message is that agencies should focus on capturing value for their work rather than just tracking time.
Prove Your Advantage: TCO Sales and Marketing ToolsAlinean, Inc.
B2B Total Cost of Ownership (TCO) Sales Enablement Tools and Marketing Calculators are required to prove value, best competition and Fight Frugalnomics™.
Prove Your Advantage: TCO Sales and Marketing ToolsAlinean, Inc.
B2B Total Cost of Ownership (TCO) Sales Enablement Tools and Marketing Calculators are required to prove value, best competition and Fight Frugalnomics™.
Presentation by Theo Slaats, partner Deloitte, on InboundOptimizer, the inbound marketing solution of Deloitte, presented on Inforum in Noordwijk Jan 26, 2010
I believe a professionals will be more successful and create more value for their customers if they begin to view themselves as professional knowledge firms rather then professional service firms.
This presentation for media and industry analysts is an adapted version of the Firm of the Future Symposium that I deliver with the VeraSage Institute's founder, Ron Baker.
This webinar covers the fundamentals of Value Pricing so that participants can:
Understand the relationship of pricing with the other elements of the marketing mix.
Achieve the value you deserve through optimal pricing strategies that maximize profits.
Ensure that marketing is more proactive to optimize value for new products and maintaining value over different life cycles.
Noted pricing expert Dr. George Cressman describes how companies achieve above average profitability by proactively managing price realization or "pricing maturity." Learn which stages a company must take to be on the path to price maturity, as well as the risks of taking shortcuts. George's advice is absolutely essential for every B2B manager involved in pricing today.
Every business has a different unique selling proposition to stay fit amongst competitors, but is it a strong enough position to get you paid your target price? The mistake many businesses make is under pricing their product and service in order to gain customer testimonials, satisfaction and experience. In some cases, business are over pricing and not getting enough customers. So how do you create a pricing model that is both flexible and makes sense for the demand of the market?
In this lean start up session, we will look at:
1) Creating a pricing model that is not only competitive, but also flexible enough for negotiations
2) Avoiding the Price Wars…undercutting your price to win customers
3) Positioning your service/product to focus more on value and building strong relationships for increased profitability
Presentation by Theo Slaats, partner Deloitte, on InboundOptimizer, the inbound marketing solution of Deloitte, presented on Inforum in Noordwijk Jan 26, 2010
I believe a professionals will be more successful and create more value for their customers if they begin to view themselves as professional knowledge firms rather then professional service firms.
This presentation for media and industry analysts is an adapted version of the Firm of the Future Symposium that I deliver with the VeraSage Institute's founder, Ron Baker.
This webinar covers the fundamentals of Value Pricing so that participants can:
Understand the relationship of pricing with the other elements of the marketing mix.
Achieve the value you deserve through optimal pricing strategies that maximize profits.
Ensure that marketing is more proactive to optimize value for new products and maintaining value over different life cycles.
Noted pricing expert Dr. George Cressman describes how companies achieve above average profitability by proactively managing price realization or "pricing maturity." Learn which stages a company must take to be on the path to price maturity, as well as the risks of taking shortcuts. George's advice is absolutely essential for every B2B manager involved in pricing today.
Every business has a different unique selling proposition to stay fit amongst competitors, but is it a strong enough position to get you paid your target price? The mistake many businesses make is under pricing their product and service in order to gain customer testimonials, satisfaction and experience. In some cases, business are over pricing and not getting enough customers. So how do you create a pricing model that is both flexible and makes sense for the demand of the market?
In this lean start up session, we will look at:
1) Creating a pricing model that is not only competitive, but also flexible enough for negotiations
2) Avoiding the Price Wars…undercutting your price to win customers
3) Positioning your service/product to focus more on value and building strong relationships for increased profitability
This lecture provides practical tips on how to prepare to enter the marketplace with your product. It is relevant for all start-ups that are still in a development phase and contemplating the various pieces that need to be in place for product launch. Case studies are used to emphasize the importance of taking a customer-centred approach to market entry and illustrate the barriers to scaling and selling your product.
Part of Entrepreneurship 101
http://www.marsdd.com/events/details.html?uuid=20ce3dd2-da9d-499d-a277-655f29487de6
LeveragePoint discusses the downsides of relying too heavily on a cost/price control approach. We'll show a recent case example of a company facing the dilemma of stagnant growth - and how a value-based marketing and sales approach will save it.
Celebrate – Pricing Power
Pricing principles that capture value and enhance profitability
Pricing can no longer be an after-thought, with the pricing strategy and rate structure applied after the service offering is developed. Increasingly, clients want unique pricing structures that include shared accountability – this applies not only to agencies, but is part of a larger trend across many service-business industries. Successfully aligning interests requires integrating the pricing strategy as a core component of the offer – using price to help determine: What is included? How is success defined? How services are delivered. This discussion will take lessons learned from both advertising, and other segments to frame the role of pricing in the sales process. We will also discuss the ways leading-class pricing organizations find success with client procurement teams – who have been very effective at driving down rates. This includes the importance of differentiating cost vs. fees vs. value. Successful alternative fee programs are not positioned as new forms of discounting, but are leveraged as a different way to measure and compensate for value. And, finally, we will discuss the concept of "losing on price."
Speaker:
Scott Lippstreu, Principal, Deloitte Consulting LLP
The Value Exchange from Content to Conversion BOLO Conference
Michael Pranikoff, Global Director of Emerging Media at PR Newswire shares "The Value Exchange from Content to Conversion" at the BOLO 2013 Conference.
BOLO 2013 3P Track: Is the Juice Worth the Squeeze? Applying Startup Mentalit...BOLO Conference
From BOLO 2013 3P Track presentation by Dan Zelikman. The 3P Track is exclusively for agency partners, presidents and principals. Attend BOLO 2014 October 19-21, 2014 in Scottsdale: www.boloconference.com
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
1. Ron Baker, Founder
VeraSage Institute
Profit Starts
with
Pricing on
Purpose
“The single most important decision in evaluating a
business is pricing power. If you’ve got the power
to raise prices without losing business to a
competitor, you’ve got a very good business. And
if you have to have a prayer session before raising
the price by 10 percent, then you’ve got a
terrible business.” - Warren Buffet
Innovate for growth.
Price for Profit.
1
2. The default purpose of
marketing is not to
increase sales.
It’s to increase profits.
1. Profit is a marketer’s ultimate objective.
2. Profit is driven mostly by price.
3. Price is driven mostly by brand perception.
4. Brand perception is driven mostly by what
agencies do for their clients.
The value of agencies
Harvard Business Review
“If Brands Are Built Over Years, Why Are They Managed Over Quarters?”
By Leonard Lodish and Carl Mela
2
3. What are you
really selling?
What are your
customers
really buying?
“The customer never buys a product. By
definition the customer buys the satisfaction of
a want. He buys value.” - Peter Drucker
3
4. The wrong practices: Time tracking software
Paradigms
drive
practices
The wrong theory: Time worked equals value created
A Tale of Two Theories
The Labor Theory of Value
The Subjective Theory of Value
Value creation and capture
Customer’s
Gain
Value
created
Price
Value
captured
Costs
4
5. Cost-Plus Pricing
Service Cost Price Value Customer
Customer Value Price Cost Service
Value-Based Pricing
Seven Steps to
Implementing Value Pricing
Implementing Value Pricing
1. Conversation with customer
Not:
“What do you need?”
But rather:
“What are you trying to accomplish?”
5
6. Implementing Value Pricing
1. Conversation with customer
Listen > Talk
Opening: “Mr. Customer, we will only undertake this
engagement if we can agree, to our mutual satisfaction, that
the value we are creating is greater than the price we are
charging you. Is that acceptable?”
Implementing Value Pricing
2. Form a Value Council and appoint a CVO
Role of the Value Council
1. Ensuring that the agency prices on purpose.
2. Constructing and experimenting with various value-based
compensation agreements.
3. Assuring continuous learning and teaching every team
member the importance of pricing for value.
4. Dealing with price objections from clients.
Implementing Value Pricing
2. Form a Value Council and appoint a CVO
Role of the Value Council (continued)
5. Keeping the agency focused on tracking client results
instead of agency inputs.
6. Establishing client selection/deselection criteria.
7. Conducting “after action reviews” at the end of major
assignments.
6
7. AAAA PRICING PRACTICES SURVEY
CFO CVO
Costing Pricing =
How often do agencies track the following?
Chief Compensation Officer
Neal Grossman
7
8. “We have as many compensation
approaches as we do clients.”
Jeff Hicks, CEO
“All of our compensation agreements
are experiments in value.”
Carl Johnson, Partner
“We don’t believe we’re in the
business of selling time.”
John Minty
Chief Value Officer
8
9. Value Council
Ken Whyte, Glen Drummond, Bob
Wilbur, Mandy Moote, Tony Mohr
“At innovation consultancy Fahrenheit 212, we
put up to two-thirds of our potential revenue at
risk, subject to achieving agreed commercial
milestones on a project.”
9
10. Implementing Value Pricing
3. Determine the optimal pricing method (fixed, results, usage)
Not:
“What do you need?”
But rather:
“What are you trying to accomplish?”
34 Sources of Client Value
Increase Reduce Improve Create
Revenue Cost Productivity Strategy
Profit Time/Effort Process System
Market Complaints Service Process
Share Risk Information Business
Retention Turnover Morale Product
RoA or ROI Conflict Image Service
Efficiency Paperwork Reputation Brand
Cash Flow Skills
Visibility Quality
Loyalty
Intangible Value
• Specialist expertise/knowledge
• Unique social capital
• Brand/reputation
• Unique result––creativity & innovation
• Reducing risk
• Excellent experience
• Relationship
• What else?
10
11. Equity
Outcome-based agreements
Royalties Risk reserves
Ownership of intellectual property
Licensing
Usage fees
Fixed value price
Implementing Value Pricing
4. Develop Options
Rational vs. Irrational
11
13. Options
Options factors to consider:
Timing
Scope
Number of deliverables
Degree of customization
Level of service or access
Data archiving
Payment terms
Implementing Value Pricing
5. Effectively present your pricing
Presenting your pricing
1. Present your most expensive option first; this is your “anchor price.”
2. After stating your price(s), shut up.
3. Use the word “price” instead of “fee.”
4. Use the word “agreement” instead of “contract.”
5. Use the word “fair,” as in “Is this a fair price to you?”
6. Remember to negotiate value, not price.
7. Place a timeline on proposals; no price should last forever.
Implementing Value Pricing
6. Engage in superior scope management
13
14. Implementing Value Pricing
6. Engage in superior scope management
Elements of an effective scope document
Scope statement
Objectives
Constraints
Project structure
Role definition
Assumptions
Deliverables
Functional requirements
Project change control
Approval process
Implementing Value Pricing
7. Conduct an “After-Action Review”
After-Action Review Questions
How could we have enhanced our client’s perception of value?
What were the business results and performance against key
metrics?
Did we have the right team on this assignment?
How high were the costs to serve?
Did we stay within time and budget parameters?
Could we have captured more value through higher price?
If we were doing this type of assignment again how would we do it?
What are the implications for the way we design and deliver our
services?
What could we do better next time?
Cycle of Change
PERFORMANCE
HOPE
CONFIDENT
COMPETENCE
Insight
TIME
14
15. Pricing is an art and a skill,
requiring…
Patience
Wisdom
Thank You!
Versage website/blog
www.verasage.com
Ron@verasage.com
Twitter @ronaldbaker
Phone 707.769.0965
15