Pricing model the new abc
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The New ABC pricing model uses value-based pricing with a minimum financial amount determined by the duration and intensity of activities. The final price is evaluated after completion based on triple dimensions of value: inspiration, impact, and investment. Longer engagements can have multiple evaluations to adjust activities and measure changes over time. Alternatively, a set price at least double the minimum can be agreed to without using the value-based model.
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Pricing model the new abc
- 1. Pricing model The New ABC The Basics In principle The New ABC works with value based pricing with a minimum financial amount as lowest value. That minimum price depends on duration and intensity of the activities. The value that you pay in the end is determined in an evaluation afterwards. For longer trajectories we can decide on multiple evaluation moments. What constitutes value? While the actual invoiced price is a monetary value, we like to take a broader perspective to arrive at that financial component. The New ABC works with a triple-dimension definition of value called Triple I-return: • Inspiration: how energised do you and your team feel based on the activities? • Impact: what is the chance of longer lasting effects? • Investment: how much is all of this worth to you? We can decide together on any specific indicators that can be used to determine the performance on these dimensions. For longer trajectories we can work with ‘deltas’, i.e. how much has changed during the process in terms of the chosen indicators. The performance is discussed during the evaluation moments, which in case of longer trajectories also serve as opportunity to make changes to the process (i.e., next activities) if necessary. Do you want to play? We warmly believe in this approach. Still, if for reasons at your discretion this is not possible we can agree on a set price. This set price is at least double the minimum price. So if you play along with this pricing model, you may end up with a financial gain. Or you pay more, but then based on the knowledge what you received, instead of guessing it upfront.