Topic: Value Pricing
Presenters: Dan Morris with Morris & D’Angelo; Dan@Verasage.com
1. The Portland Woodard Group Lunch & Learn – Monday, August 12 from 11-1:30 at McMenamins Chapel Brewery in North Portland
2. ASAP September luncheon – Thursday, September 5- topic tbd.
3. ASAP/Woodard Group 3rd Quarter Social – Tuesday, September 17th from 5 to 7 pm at the Beaverton Food Cartel.
· President Kim Boaz opened the August meeting and attendees introduced themselves and stated whether they are accepting new clients.
· Discussed Value Pricing Not Value Billing. Billing is after the fact.
· First law of pricing – all value is subjective. Example- a coke purchased from a vending machine vs. 7-11 vs. Timbers game vs. Super Bowl are priced differently.
· Pricing is a core competency.
· Many price using cost plus pricing. Service -Cost-Price-Value – Customer.
· Value Based Pricing starts with the Customer; determine the Value; determine the Cost and define the Service.
· 8 steps to Implement Value Pricing:
o Conversation with customer. Find out what motivates them.
o Price the customer not the services.
o Developing and pricing options – give people choices.
o Effectively present options to customers.
o Option selected codified into an FPA (fixed price agreement).
o Proper Project Management
o Watch for Scope Creep; utilize change orders; need permission from client before incurring extra time and cost.
o Conduct pricing after action review. Have conversation- what went well, what didn’t go well.
· Questions to Ask your client
o What do you expect from us?
o How do you define a successful relationship?
o What is your current pain?
o What keeps you awake at night?
o Why are you changing firms?
o What is your budget for this service?
o How would you like to measure success?
· Book recommendations – Let’s Get Real & Breaking the Time Barrier by Michael E. Gerber.
· Are you telling your customers what you can do for them?
· Pricing the Customer – no two customers are the same.
· All Pricing is Contextual.
· Timing, terms, technology, talent, tailoring, transference
· The Value Guarantee
· Article “Pricing on Purpose – How to Implement; June 2009 www.journalofaccountancy.