Source: VeraSage Institute

In a recent post, Ed Kless reviews Pricing With Confidence, by Reed Holden and Mark Burton. He lists some important ideas from this book including:

• Offer the client options, i.e., different prices for different service levels.
• The value of each of these options should be clearly differentiated from each other.
• Avoid relinquishing pricing decisions to competitors.
• Discounting prices erodes the confidence of your people--they begin to doubt the value of their services.
• Systematic discounting means you are selling to the wrong clients.
• Focus on value creation.
• Purchasers of your services generally base their decisions on either:
  • Price
  • Value
  • Relationship
• "Price" purchasers make sure they can switch suppliers easily. That is never the case with purchasers of accounting services; therefore, accounting firms don't really sell to "price" purchasers.

To read the original posting, click here.

From VeraSage Institute, http://www.verasage.com/index.php/community/, "Thoughts on Pricing with Confidence," June 30, 2009.

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