Pricing

December 17, 2009
by Shannon Vincent

I am always fascinated by Pricing.  I was with an accounting firm yesterday discussing the pricing of services.

There seem to be 3 different prices:

1) The value of the work (in the eyes of the provider and in the eyes of the client)

2) What the provider is willing to do the work for

3) What the client is willing to pay for the work

I find that without proper positioning and leverage #1 is tough to achieve by the Provider.  Ideally, #1 (from the Provider’s perspective) and #3 are closely aligned.

The other component of pricing that always amazes me is how mature, over-worked, under-paid accountants will still “under-price” a job to get it.  Why would someone do that?  If you don’t “need the work” then why are you willing to do it for less than excellent profit margins?

Pricing is definitely an art.

from → General

One Response leave one →
  1. December 17, 2009
    AdamD permalink

    Speaking of pricing models, here is a fascinating read on computer software pricing and the multi-tiered functionality approach:

    http://www.joelonsoftware.com/articles/CamelsandRubberDuckies.html

    Reply

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