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Value-Based Pricing at Pause On Error

Value-Based Pricing from Pause OnError

September 26, 2014 by Kirk Bowman Leave a Comment

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

Filed Under: Software, Switching, VeraSage, Videos

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