Comments on: Pontificating about pricing and negotiation http://www.accmanpro.com/2008/05/23/pontificating-about-pricing-and-negotiation/ Thu, 09 Feb 2012 10:01:51 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: MJ Ray (software.coo http://www.accmanpro.com/2008/05/23/pontificating-about-pricing-and-negotiation/comment-page-1/#comment-4809 MJ Ray (software.coo Wed, 12 Aug 2009 19:47:20 +0000 http://www.accmanpro.com/?p=3064#comment-4809 "There is a URL and embed code in the ‘menu’ button on the video" - so that's a no, there's no download link then? "There is a URL and embed code in the ‘menu’ button on the video" – so that's a no, there's no download link then?

]]> By: Tracey http://www.accmanpro.com/2008/05/23/pontificating-about-pricing-and-negotiation/comment-page-1/#comment-4808 Tracey Tue, 11 Aug 2009 14:33:07 +0000 http://www.accmanpro.com/?p=3064#comment-4808 What a thought provoking session...I run parenting courses - just started - myself and business partner worked out our minimum per hour that we wanted to earn, then looked at the price per parent, per course that calculation gave us. I am reassured (I think) by your comments, that we then raised the price to reflect what we felt the market would bear. We are now at the stage of marketing/selling ourselves via local schools. I guess the feedback - and take-up - will inform where we take the pricing from here. Tracey What a thought provoking session…I run parenting courses – just started – myself and business partner worked out our minimum per hour that we wanted to earn, then looked at the price per parent, per course that calculation gave us. I am reassured (I think) by your comments, that we then raised the price to reflect what we felt the market would bear. We are now at the stage of marketing/selling ourselves via local schools. I guess the feedback – and take-up – will inform where we take the pricing from here.
Tracey

]]> By: Dennis Howlett http://www.accmanpro.com/2008/05/23/pontificating-about-pricing-and-negotiation/comment-page-1/#comment-4807 Dennis Howlett Wed, 02 Jul 2008 03:33:23 +0000 http://www.accmanpro.com/?p=3064#comment-4807 There is a URL and embed code in the 'menu' button on the video. There is a URL and embed code in the 'menu' button on the video.

]]> By: MJ Ray http://www.accmanpro.com/2008/05/23/pontificating-about-pricing-and-negotiation/comment-page-1/#comment-4806 MJ Ray Mon, 30 Jun 2008 22:42:08 +0000 http://www.accmanpro.com/?p=3064#comment-4806 [swf @ 0xb7f82fe0]Compressed SWF format not supported Is there a download link for this video, please? [swf @ 0xb7f82fe0]Compressed SWF format not supported

Is there a download link for this video, please?

]]> By: Time is money « http://www.accmanpro.com/2008/05/23/pontificating-about-pricing-and-negotiation/comment-page-1/#comment-4805 Time is money « Fri, 06 Jun 2008 12:20:01 +0000 http://www.accmanpro.com/?p=3064#comment-4805 [...] of the panels in Lausanne tackled rates and negotiating and it’s been causing a bit of discussion ever since . Take a look here as Stowe Boyd argues for billing by time and Martin Roell tells the [...] [...] of the panels in Lausanne tackled rates and negotiating and it’s been causing a bit of discussion ever since . Take a look here as Stowe Boyd argues for billing by time and Martin Roell tells the [...]

]]> By: Ed Kless http://www.accmanpro.com/2008/05/23/pontificating-about-pricing-and-negotiation/comment-page-1/#comment-4804 Ed Kless Thu, 29 May 2008 18:22:12 +0000 http://www.accmanpro.com/?p=3064#comment-4804 @Oliver - Welcome to the wonderful world of value pricing! @Oliver – Welcome to the wonderful world of value pricing!

]]> By: oliver gassner http://www.accmanpro.com/2008/05/23/pontificating-about-pricing-and-negotiation/comment-page-1/#comment-4803 oliver gassner Thu, 29 May 2008 16:00:20 +0000 http://www.accmanpro.com/?p=3064#comment-4803 Yup, I often do workshops with customers and tell them; * this is going to be so and so much, * we are not going to 'drop the hammer' (German expression, stop working) at 1600 or 1800 orwhatever, * and If I need to ptrovide swome extra infos that I have somewhere and I could not give you on the spot: You'll get these included - * IF I need to do EXTRA research (on somwthing we discover but did not agree upon in th furst place) that will take me (oops there it is) probably half a day I will bill you extra on that. Nobody had a problem with that. And: I tried a first step towards the retainer thing even today on a proposal. ( 1-1.5 day workshop (which is what the new customer asked for) for a flat fee + maybe later a retainer.) We'll see how this works ;) Yup, I often do workshops with customers and tell them;
* this is going to be so and so much,
* we are not going to 'drop the hammer' (German expression, stop working) at 1600 or 1800 orwhatever,
* and If I need to ptrovide swome extra infos that I have somewhere and I could not give you on the spot: You'll get these included -
* IF I need to do EXTRA research (on somwthing we discover but did not agree upon in th furst place) that will take me (oops there it is) probably half a day I will bill you extra on that.

Nobody had a problem with that.

And:
I tried a first step towards the retainer thing even today on a proposal. ( 1-1.5 day workshop (which is what the new customer asked for) for a flat fee + maybe later a retainer.) We'll see how this works ;)

]]> By: oliver gassner http://www.accmanpro.com/2008/05/23/pontificating-about-pricing-and-negotiation/comment-page-1/#comment-4802 oliver gassner Thu, 29 May 2008 15:57:28 +0000 http://www.accmanpro.com/?p=3064#comment-4802 Yup, I often do workshops with customers and tell them; * this is going to be so and so much, * we are not going to 'drop the hammer' (German expression, stop working) at 1600 or 1800 orwhatever, * and If I need to ptrovide swome extra infos that I have somewhere and I could not give you on the spot: You'll get these included - * IF I need to do EXTRA research (on somwthing we discover but did not agree upon in th furst place) that will take me (oops there it is) probably half a day I will bill you extra on that. Nobody had a problem with that. And: I tried a first step towards the retaioner thing even today on a proposal. ( 1-1.5 day workshop (which is what the new customer asked for) + maybe later a retainer.) We'll see how this works ;) Yup, I often do workshops with customers and tell them;
* this is going to be so and so much,
* we are not going to 'drop the hammer' (German expression, stop working) at 1600 or 1800 orwhatever,
* and If I need to ptrovide swome extra infos that I have somewhere and I could not give you on the spot: You'll get these included -
* IF I need to do EXTRA research (on somwthing we discover but did not agree upon in th furst place) that will take me (oops there it is) probably half a day I will bill you extra on that.

Nobody had a problem with that.

And:
I tried a first step towards the retaioner thing even today on a proposal. ( 1-1.5 day workshop (which is what the new customer asked for) + maybe later a retainer.) We'll see how this works ;)

]]> By: Ed Kless http://www.accmanpro.com/2008/05/23/pontificating-about-pricing-and-negotiation/comment-page-1/#comment-4801 Ed Kless Thu, 29 May 2008 13:16:42 +0000 http://www.accmanpro.com/?p=3064#comment-4801 @Oliver You are right on that it is a metaphor. (See my post on this subject from April --> <a href="http://www.verasage.com/index.php/community/comments/we_are_fighting_a_systematic_cultural_metaphor/)" rel="nofollow">http://www.verasage.com/index.php/community/comme...</a> What you are proposing for initial contact is called menu pricing. It mean having a specific price set for a certain event. In your case, I would call it a diagnostic or discovery session. I have no problem with offering a price for this. I would just not tie it to hours in anyway. Some people even sell these as lost leaders - think Gilette losing money on razors to sell blades. With regard to Stowe v. Martin, I am in complete violent agreement with Martin. I WANT customers to call me if they have a problem. I would even create an expectation of how long it will take for me to get back to them. The shorter the timeframe, the more expense the on-going access contract would be. @Oliver
You are right on that it is a metaphor. (See my post on this subject from April –> http://www.verasage.com/index.php/community/comme…

What you are proposing for initial contact is called menu pricing. It mean having a specific price set for a certain event. In your case, I would call it a diagnostic or discovery session. I have no problem with offering a price for this. I would just not tie it to hours in anyway. Some people even sell these as lost leaders – think Gilette losing money on razors to sell blades.

With regard to Stowe v. Martin, I am in complete violent agreement with Martin. I WANT customers to call me if they have a problem. I would even create an expectation of how long it will take for me to get back to them. The shorter the timeframe, the more expense the on-going access contract would be.

]]> By: oliver gassner http://www.accmanpro.com/2008/05/23/pontificating-about-pricing-and-negotiation/comment-page-1/#comment-4800 oliver gassner Thu, 29 May 2008 07:20:20 +0000 http://www.accmanpro.com/?p=3064#comment-4800 @Ed: Thanks, OK, got that. OTOH I see his problem with 'if we define only results the customer decides on how often he calls/interrupts'. And I see Martins point, that the customer shopuld not be 'afraid of additional cost' when the point is to achieve the result agreed upon. My experience is that the customers wants to see a certain result and usually has an idea what it is worth to them to achieve it. In a way they do not care how much time I need to prepare, or travel or whatever. Why should they have to care? I know a consultant who charges 'a day' whenever he visits someone, as he says he can't "do" anything else while he is on the plane or train. (plane in Germany would be max 1.5 hrs + 2 hrs transfer, train would be max 10 hrs, one way each) - at least he cannot work directly with another customer :). So it is in a way a 'metaphor' when you 'charge a day', it seems more a convention to me than really 'selling the time'. With 'innovative' companies you might be able to talk differently, other companies have fixed policies on 'how much they pay for a day' (and if it is more they need approval or whatever) so you need to talk to them in these terms. I talked with Martin quite a lot about his value based concept. I just sometimes shy away from teh ahssle not only to sell my 'service' but ALSO and additionally the new concept of billing. Probably it is a good thing to have an initial contact on a more 'classical' billing model and then move to a value based retainer model once the customer knows what "exactly" your value is to them. I'll try that ;) @Ed:
Thanks, OK, got that. OTOH I see his problem with 'if we define only results the customer decides on how often he calls/interrupts'. And I see Martins point, that the customer shopuld not be 'afraid of additional cost' when the point is to achieve the result agreed upon.

My experience is that the customers wants to see a certain result and usually has an idea what it is worth to them to achieve it. In a way they do not care how much time I need to prepare, or travel or whatever. Why should they have to care?

I know a consultant who charges 'a day' whenever he visits someone, as he says he can't "do" anything else while he is on the plane or train. (plane in Germany would be max 1.5 hrs + 2 hrs transfer, train would be max 10 hrs, one way each) – at least he cannot work directly with another customer :) .

So it is in a way a 'metaphor' when you 'charge a day', it seems more a convention to me than really 'selling the time'. With 'innovative' companies you might be able to talk differently, other companies have fixed policies on 'how much they pay for a day' (and if it is more they need approval or whatever) so you need to talk to them in these terms.

I talked with Martin quite a lot about his value based concept. I just sometimes shy away from teh ahssle not only to sell my 'service' but ALSO and additionally the new concept of billing.

Probably it is a good thing to have an initial contact on a more 'classical' billing model and then move to a value based retainer model once the customer knows what "exactly" your value is to them.
I'll try that ;)

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