In this episode, Wes McClure continues the interview with Kirk, discussing how he uses value pricing from the perspective of a business owner and with his team.
How do you ensure your team understands value?
- Talk about it all the time.
- Learn from experience.
- Team members can shadow on a call to learn.
- Your team will challenge you.
- Have a pricing council.
- We ask subcontractors for a fixed price, but they are usually providing an effort-based price.
- The more people there are who are looking at a project from a value perspective, the better it is for the customer.
- My team has authority to write and price under a certain dollar amount.
How does value pricing work with Agile development?
- Kirk believes in an Agile/Waterfall development process.
- Agile transfers more risk to the customer.
- You have to define your boundaries, but set a price to give you flexibility.
How has value pricing affected you and your company financially?
- A debt-free business with savings allows us to make better decisions.
- Having the ability and confidence to say no is easier when you are not “living paycheck to paycheck”.
- Collect money upfront and then work harder to serve a customer who trusts us.
- Value pricing allows you to go to conferences, work on internal projects and gives you room to experiment.
- Shift customer perspective from inputs to outputs.
- Guarantee your work.
- Team will do everything in our ability to make a project 100% successful.
- Becoming a pricing consultant came out of value pricing for my software company.
- Coaching and training offerings are coming out of the value pricing world.
- Value is subjective; every price is contextual.
Thanks to Wes McClure for conducting this interview, wesmcclure.com.