Pricing Professional Services

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In this presentation on “Pricing for Service Professionals”, Helen advocates “value pricing” for professional services. This pricing model begins with defining what constitutes a professional and what exactly is it that they are selling. The end result is a client who knows what value you have added to their business, and who is happy to pay for that.

Empresariales Economía y finanzas

Pricing for Professional Services

Helen Cousins
for

2011 © Copyright Helen Cousins, Xcel Business Solutions 2011

What do you value in a doctor?

29.11.11 3

What do you value in a film?

29.11.11 4

What do you value when raising equity?

29.11.11 5

Do you care how long it took…

… to perform a successful surgical
operation?
… to make your favourite film?
… to successfully raise equity to fund
your company?

29.11.11 6

What are you selling?
This reminds me…
Hourly
Hours Rate Fee
€ €
To Professional Fee 55 €150 €8,250

of this…
Unit
Quantity Price Total
€ €
Kitchen sinks 55 €150 €8,250

29.11.11 8

If you sell hours…

… aren’t you training your clients to value
hours?
… why won’t your client just buy the
cheapest hours?
… what differentiates you from other
professionals?

29.11.11 9

We’ve all got 24 hours per day

29.11.11 10

We’ve all got 24 hours per day

29.11.11 11

Are all hours equal …

=

… in the context of professional services?

29.11.11 12

Pricing is a function of Marketing

Product Price

Promotion Place

29.11.11 13

Value Pricing

Sell knowledge, not time
Results focused, not time obsessed
Fixed price contracts
Remove risk from client
Price by client
Scope your work carefully

29.11.11 14

Connect with Xcel Business Solutions

Helen Cousins
29.11.11 16

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Pricing Professional Services

2. What is a Professional? 29.11.11 2

3. What do you value in a doctor? 29.11.11 3

4. What do you value in a film? 29.11.11 4

5. What do you value when raising equity? 29.11.11 5

6. Do you care how long it took… … to perform a successful surgical operation? … to make your favourite film? … to successfully raise equity to fund your company? 29.11.11 6

7. Is time the “value add”? 29.11.11 7

8. What are you selling? This reminds me… Hourly Hours Rate Fee € € To Professional Fee 55 €150 €8,250 of this… Unit Quantity Price Total € € Kitchen sinks 55 €150 €8,250 29.11.11 8

9. If you sell hours… … aren’t you training your clients to value hours? … why won’t your client just buy the cheapest hours? … what differentiates you from other professionals? 29.11.11 9

10. We’ve all got 24 hours per day 29.11.11 10

11. We’ve all got 24 hours per day 29.11.11 11

12. Are all hours equal … = … in the context of professional services? 29.11.11 12

13. Pricing is a function of Marketing Product Price Promotion Place 29.11.11 13

14. Value Pricing Sell knowledge, not time Results focused, not time obsessed Fixed price contracts Remove risk from client Price by client Scope your work carefully 29.11.11 14

15. Articles on Pricing Article Published on Why Business Pricing Can’t be Personal Own Blog Your Business, Your Price - Do you value YOUR Own Blog Brand? Pricing for Profit – Pitching Your Price through Own Blog Innovation Pricing for Profit. [Part 1] Bloggertone Pricing Vs. Costing [Part 2] Bloggertone Pricing as a Process [Part 3] Bloggertone Pricing for Professionals [Part 4] Bloggertone How to Improve Your Profit Margin All About Business (BOI) The Devil is in the Discount All About Business (BOI) 29.11.11 15

16. Connect with Xcel Business Solutions Helen Cousins 29.11.11 16

Pricing Professional Services

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