Identifying the Right Unit of Value for Pricing
A Real-World Case Study Showing How One IT Services Company Aligned Their Hourly Rates to Customer Value
Very often, companies develop their pricing structures according to industry norms and "standard" practices. And then, even when those structures no long work, they stick with them because "that's how it's always been done." In this case study, you will learn about:
- How simple pricing structures can hurt revenues and profits when they fail to align customer value and costs.
- How the wrong internal perceptions about the value being delivered can affect important business decisions.
- The critical importance of identifying and utilizing the right "unit of value" for both pricing and costing purposes.
- How one professional services company changed their pricing and quoting structure to improve their margins.
This case study is just one of hundreds of educational resources you get access to as a PricingBrew Journal subscriber.
More Subscriber-Only Resources From Our Library
How Customers Evaluate a Price
Customers aren't as logical in understanding value and assessing a price as you might think. In this guide, Mark Dresdner exposes eight factors that play an important role when a potential customer evaluates your prices.View This Guide
Pricing Psychology in B2B
While businesses do indeed have systems and policies to ensure greater rationality and consideration in purchasing, certain psychological factors can still have tremendous influence over price perceptions.View This Webinar
Boosting ASPs (Average Selling Prices) to Drive Profitability
The use of averages are as common in business as they are in sports. Average selling prices (ASPs), however, can hide a lot of profitable truths. In this case study, Peter Maniscalco reveals how one building materials company dug deeper to find profitable opportunities.View This Case Study
A Modern Approach for Fixing a Costly Profit Leak
We recently went through a virtual negotiation training program that can help close the massive skills gap between buyers and sellers. In this research brief, we share our impressions and recommendations.View This Research
When you join your peers and become a PricingBrew Journal subscriber, you get immediate access to this case study as well as all of these other features:
- Training WebinarsDozens of on-demand webinars covering crucial pricing topics with new webinars every few weeks
- On-Demand LibraryA searchable library of hundreds of concise guides, tutorials, cases, assessments, and research reports
- Expert InterviewsLearn from others in pricing who’ve “Been There and Done That” through our Expert Interview Series
- Help DeskAsk our team of analysts for advice, insights, and perspectives on your specific pricing challenges