Rather a good post by Chris Marston on Inside the Firm of the Future, The 4 C's of Value Pricing: Get it or forget it!
Starting with a quote:
Let me start out by explaining that the Price of work in a Value Price model has NOTHING to do with your time. Say it with me now " The Price of work has NOTHING to do with time." Write it on the board 50 times and say it out loud at least 3 times a day. Value Pricing is about Adding Value to the client and Charging for the value you add. . . . It is ENTIRELY based on Value to the client. Yes, I'm going to have to ask you to repeat that to: It is ENTIRELY based on Value to the client.
Now I know that clients, especially Government clients, make this hard by actually demanding precise, visible, time estimates. They do this even though it reduces value to them. I also know that there are contract worlds in which value pricing does not work.
But all this said, I do commend this post to you as a good introduction to value based pricing.
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