“Why Your Agency Nees a Value Coucil” Online Workshop - Decemer 3, 2021
IMPROVE YOUR PROFITABILITY BY TRANSFORMING YOUR PRICING
Make modern pricing a core competency in your firm
Progressive Pricing Strategies for Professional Firms
Ignition helps agencies and other professional firms get paid for the value they create rather than the hours they work. Making the transition to modern pricing practices requires a change in thinking as well as a change in practices, so the centerpiece of this program is an in-depth workshop that explores the leading edge in professional pricing, including:
Problem
Paradigm
Principles
Practices
Problem
- Why clients favor a change in compensation approaches
- The power of price
- Matching professional buyers with professional sellers
- Why pricing is an essential part of your business model
Paradigm
- Why cost-based pricing is the wrong paradigm
- The nature of value in the world of professional services
- Selling outcomes, outputs, or inputs
- Costing is not pricing
- What you really sell, and what clients really buy
- Sellers change pricing, not buyers
Principles
- Moving away from the language of cost to the language of value
- Selling your value instead of your costs
- Bottom-up vs. top-down pricing
- Why your costs are none of your clients' business
- Price the client, not the service
- Compensation agreements as a financial portfolio
Practices
- Putting "scope of value" ahead of "scope of work"
- The pricing spectrum
- Setting a fixed price based on value instead of cost
- Selecting the profit-optimizing price for each engagemen
- Dealing with price psychology and overcoming price objections
- The critical importance of providing pricing options
- Decoupling different classes of value
- Aligning the economic incentives of both buyer and seller
- Centralizing pricing in your firm: the Pricing Council
* The many other progressive pricing strategies used by today's businesses and how they can clearly apply to professional service firms
* Why the "billable hour" is not a "unit of value" (only a unit of cost) and how to effectively sell the value you create in other more effective forms
*Why your costs are really none of your client's business, and how to change to dialogue away from transparency of agency costs to what really matters: the value being created for the marketer
* Why progressive marketers favor a change in agency compensation
* How to charge for the value of outputs vs. the cost of inputs
* Selecting the profit-optimizing price for each engagement
* The importance of decoupling the perceived value of ideation and execution
* Why pricing is a strategic function that should be centralized
* The psychology of pricing and how to use it to your advantage
To learn more about how ConsultUp can help your firm make the transition to more profitable pricing practices, please contact us here.
Workshops
Getting Paid for Value Instead of Time
An exploration of innovative new compensation approaches that align the interests of both agency and client and create more profitable client relationships.
How Agencies Can Develop New Streams
How agencies can move beyond the service business mentality of the last half-century and provide new forms of value for their clients.