Book description
Praise for Implementing Value Pricing: A Radical Business Model for Professional Firms
"Ron Baker is the most prolific and best writer when it comes to pricing services. This is a must-read for executives and partners in small to large firms. Ron provides the basics, the advanced ideas, the workbooks, the case studies—everything. This is a must-have and a terrific book."
—Reed K. Holden, founder and CEO, Holden Advisors, Corp., Associate Professor, Columbia University www.holdenadvisors.com
"We've known through Ron Baker's earlier books that he's not just an extraordinary thinker and truly brilliant writer—he's a mover and a shaker on a mission. This is the End of Time! Brilliant."
—Paul Dunn, Chairman, B1G1 www.b1g1.com
"Implementing Value Pricing is a powerful blend of theory, strategy, and tactics. Ron Baker's most recent offering is ambitious in scope, exploring topics that include economic theory, customer orientation, value identification, service positioning, and pricing strategy. He weaves all of them together seamlessly, and includes numerous examples to illustrate his primary points. I have applied the knowledge I've gained from his body of work, and the benefits to me—and to my customers—have been immediate, significant, and ongoing."
—Brent Uren, Principal, Valuation & Business Modeling, Ernst & Young www.ey.com
"Ron Baker is a revolutionary. He is on a radical crusade to align the interests of service providers with those of their customers by having lawyers, accountants, and consultants charge based on the value they provide, rather than the effort it takes. Implementing Value Pricing is a manifesto that establishes a clear case for the revolution. It provides detailed guidance that includes not only strategies and tactics, but key predictive indicators for success. It is richly illustrated by the successes of firms that have embraced value-based pricing to make their services not only more cost-effective for their customers, but more profitable as well. The hallmark of a manifesto is an unyielding sense of purpose and a call to action. Let the revolution begin."
—Robert G. Cross, Chairman and CEO, Revenue Analytics, Inc. Author, Revenue Management: Hard-Core Tactics for Market Domination www.revenueanalytics.com
Table of contents
- Cover
- Series page
- Half title page
- Title page
- Copyright page
- Dedication
- Foreword
- Preface
- Acknowledgments
- About the Author
-
Part I: A Radical Business Model
- CHAPTER 1 The Firm of the Past
-
CHAPTER 2 The Firm of the Future
- The Business Model of the Firm of the Future
- Revenue Is Vanity—Profit Is Sanity
- Businesses Have Prices, Not Hourly Rates
- Why Intellectual Capital Is the Chief Source of Wealth
- Negative Intellectual Capital
- Why Effectiveness Trumps Efficiency
- What, Exactly, Is Productivity?
- There’s No Such Thing as Generic “Efficiency”
- Where Do Profits Come From?
- If Only I Knew Then What I Know Now
- Summary and Conclusions
-
Part II: Foundations of Creating Value
- CHAPTER 3 Why Are We in Business?
- CHAPTER 4 A Tale of Two Theories
- CHAPTER 5 Four Ps and Five Cs
- CHAPTER 6 What People Buy
- CHAPTER 7 How People Buy
- CHAPTER 8 Your Firm’s Value Proposition
- CHAPTER 9 The Consumer Surplus and Price Discrimination
- CHAPTER 10 Macro Pricing Strategies
- CHAPTER 11 Price the Customer, Not the Service
- CHAPTER 12 There Is No Such Thing as a Commodity
- CHAPTER 13 Baker’s Law: Bad Customers Drive Out Good Customers
- CHAPTER 14 Value Pricing and Self-Esteem
- CHAPTER 15 Ethics, Fairness, and Value Pricing
- Part III: The Genesis and Consequences of Hourly Billing and Timesheets
-
Part IV: What Replaces Hourly Billing and Timesheets
- CHAPTER 18 Why Carthage Must Be Destroyed
- CHAPTER 19 Price-Led Costing Replaces Hourly Billing
- CHAPTER 20 The Wrong Mistakes
- CHAPTER 21 Who Is in Charge of Value?
- CHAPTER 22 Measure What Matters to Customers
- CHAPTER 23 Firm-wide Key Predictive Indicators
- CHAPTER 24 Knowledge Worker Key Predictive Indicators
- CHAPTER 25 After Actions Reviews
- CHAPTER 26 O’Byrne & Kennedy: A Firm of the Future
-
Part V: Eight Steps to Implementing Value Pricing
- CHAPTER 27 The Eight Steps at a Glance
- CHAPTER 28 Step One: Conversation
- CHAPTER 29 Step Two: Pricing the Customer: Questions for the Value Council
- CHAPTER 30 Step Three: Developing and Pricing Options
- CHAPTER 31 Step Four: Presenting Options to the Customer
- CHAPTER 32 Step Five: Customer Selection Codified into the Fixed Price Agreement
- CHAPTER 33 Step Six: Proper Project Management
- CHAPTER 34 Step Seven: Scope Creep and Change Orders
- CHAPTER 35 Step Eight: Pricing After Action Reviews
- Part VI: Inflection Point
- Bibliography
- Index
Product information
- Title: Implementing Value Pricing: A Radical Business Model for Professional Firms
- Author(s):
- Release date: December 2010
- Publisher(s): Wiley
- ISBN: 9780470584613
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