June 2015 Price Structure Improvements, Cost-Plus vs. Value-Based

Cost-Plus or Value-Based (Services)

June 2015 Communication, Pricing

Value-based pricing talks about pricing based on whether a product provides more or less perceived value with respect to the next best alternative. In the case of professional services however there is a slight difference — since there is the “human touch” involved we can’t be sure whether the next best alternative is a true alternative at all.

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“The dollar .DXY dropped more than half a percent against a basket of major currencies even after Obama denied a Bloomberg report, citing an unnamed French official, that he had called the strong dollar “a problem” in conversation at the Group of Seven (G7) summit in Germany.” Reuters

  1. What happens in someone else’s backyard, sometimes becomes your problem.
  2. Keep an eye on your neighbors.
  3. You can only turn a cheek to what’s happening around you for so long.
  4. We are interconnected.
  5. Have each other’s best interest in mind.
  6. Being interdependent doesn’t have to be a downfall.
From the Archives

Price Structure Improvements Drive UPS Earnings Up

» April 2015

Value vs. Power

» March 2015

Managing Value: Getting Smarter

» May 2015

International Pricing Among Current Currency Fluctuations

Cost-Plus or Value-Based (Services)

» February 2015

Managing Value: Where the Problem Lies

» November 2014

Charging a Premium for Reliability

» October 2014

Stanford Business Offers New Perspectives on Entrepreneurship

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Decisions in Add-on and Versioning Price Structures

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