In February 2010, I gave a presentation at the Pause OnError conference in Portland. I explained the advantages of value pricing to a room of 50+ software developers and facilitated an open discussion. If you look closely, you can actually see someone sitting in the bath tub to listen.
Video Highlights
- 4:50 – What is value pricing?
- 7:00 – The Labor Theory of Value
- 9:25 – Time is not money
- 13:20 – The steps to implement value pricing in your business
- 16:10 – How does value pricing affect the start of a sales process?
- 19:45 – ROI definition
- 22:10 – Fixed pricing vs. value pricing
- 23:30 – Scope creep and how to handle it
- 29:30 – Value pricing in a competitive market
- 34:45 – Value pricing is not right for every customer
- 40:00 – Bad customers drive out good customers
- 42:15 – The difference between implementing as a freelancer vs. company
- 51:00 – How do you arrive at a budget?
- 54:20 – How do you handle emergencies with value pricing?
Articles Mentioned
- On Timesheets and Cost Allocation
- Pricing on Purpose: How to Implement Value Pricing in Your Firm
- Hourly Billing Is the Opium of the Profession
- Top Ten Ways to Convince a Buyer Value-based Fees are Best
- 101 Questions for Any Sales Situation
- What If the Apple Store Billed by the Hour
- Value Billing and the Use of Transparent Pricing
- The Triangle of Truth
- Elements of a Scope Document
- Elements of a Change Request
Books Mentioned
- Value-Based Fees by Alan Weiss
- Pricing on Purpose by Ron Baker
- The Answer to How Is Yes by Peter Block
- Good to Great by Jim Collins
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