2

Cost-plus pricing and beyond

Cost-plus pricing

Client-driven pricing

Competition-driven pricing (market-driven)

How service firms compete

What next?

Client messaging

The competitive landscape – what is your market positioning?

New service launches – setting the market price

If you are to develop a successful pricing strategy for services then there are effectively two pillars: first, the method you use to calculate the price of your services and, second, how you competitively position your services.

The first pillar involves deciding how you will calculate the prices that you are going to charge your clients. There are three widely used techniques:

  • cost-plus pricing;
  • client-based pricing;
  • competitor-based pricing.

They each have different ...

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