These slides were prepared for a SXSW 2011 session on Value Pricing.

1. How did we
implement value
based pricing?

2. I’d like to talk about
‣ Background
‣ What we needed to understand before we
could do anything
‣ What we’ve implemented

3. Before I begin
‣ We’ve been working on this over a year and we
are still figuring it out
‣ It is amore a change in a way of thinking then it
is a set of tools
‣ It requires a lot of work to unlearn a way of
thinking
‣ It requires a lot of work to do something non
standard

4. We never tracked
hours...

5. But we did form
our prices based
on hours

9. Tim Williams
(Ignition Consulting)

10. 5 things we needed to
understand
‣ Price vs Cost
‣ Discovering our incentives
‣ Efficiency vs. Effectiveness
‣ What clients are buying
‣ How clients perceive us

11. 1.
Price vs. Cost

12. Our costs do not
lead our pricing

13. 2.
Understand our
incentives

16. 3.
Efficiency vs.
Effectiveness

17. 4.
What are our
clients buying
(what are we selling)

18. 5.
How our clients
perceive us

19. 5 things we are doing
1.Make pricing a skill
2.Move from deliverables to outcomes
3.Be creative in how we get compensated for
what we do
4.Present options to clients to understand what
they value
5.Get better at understanding the value we create