Art of Value Show - Discover Value | Create Options | Start Pricing https://artofvalue.com/category/episodes/ Thu, 25 Apr 2019 22:16:49 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 https://artofvalue.com/wp-content/uploads/2016/12/aov-icon-100x100.png Episodes Archives - Art Of Value https://artofvalue.com/category/episodes/ 32 32 yes Art of Value Show - Learn to create happy customers and make more money by discovering value, creating options and starting to price. Kirk Bowman no podcast Discover Value | Create Options | Start Pricing Episodes Archives - Art Of Value http://artofvalue.com/wp-content/uploads/powerpress/aov-podcast-1400.jpg https://artofvalue.com/category/episodes/ ArtOfValue.comvalue,pricing,value pricing,hourly,billing,hourly billinginfo@artofvalue.comKirk Bowman Why Cash Does Matter with Ron Baker – 129 https://artofvalue.com/why-cash-does-matter/ https://artofvalue.com/why-cash-does-matter/#respond Wed, 26 Dec 2018 13:00:18 +0000 http://artofvalue.com/?p=10059 In this episode, Ron Baker and I continue with Part 2 of the What Matters series. If profit does not matter, then what should replace it? Cash planning and budgeting. This is a huge opportunity for accountants and consultants because you can equip your customer to make stronger business decisions. Will you seize it? About […]

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]]> https://artofvalue.com/why-cash-does-matter/feed/ 0 In this episode, Ron Baker and I continue with Part 2 of the What Matters series. If profit does not matter, then what should replace it? Cash planning and budgeting. This is a huge opportunity for accountants and consultants because you can equip your... In this episode, Ron Baker and I continue with Part 2 of the What Matters series. If profit does not matter, then what should replace it? Cash planning and budgeting. This is a huge opportunity for accountants and consultants because you can equip your customer to make stronger business decisions. Will you seize it?











About Ron Baker



Ron Baker is the author of Implementing Value Pricing, the foremost resource on the subject. He is the founder of the VeraSage Institute, and co-host of The Soul of Enterprise podcast. Recently, he became the Chief Value Office (CVO) at Armanino, one of the Top 20 accounting firms in the US.



* ron@verasage.com (Email)* @ronaldbaker (Twitter)* LinkedIn
]]> Episodes Archives - Art Of Value full false 52:32 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Why Profit Does Not Matter with Reginald Tomas Lee – 128 https://artofvalue.com/why-profit-does-not-matter/ https://artofvalue.com/why-profit-does-not-matter/#comments Thu, 20 Dec 2018 13:00:16 +0000 http://artofvalue.com/?p=9892 In this episode, Dr. Reginald Tomas Lee explains why cash and profit are not the same. Cash is the life blood of a business. It drives daily operational decisions. Profit, on the other hand, is a relative metric (not measurement), dependent on the cost formula chosen. Executives and managers need to understand the difference and […]

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]]> https://artofvalue.com/why-profit-does-not-matter/feed/ 2 In this episode, Dr. Reginald Tomas Lee explains why cash and profit are not the same. Cash is the life blood of a business. It drives daily operational decisions. Profit, on the other hand, is a relative metric (not measurement), In this episode, Dr. Reginald Tomas Lee explains why cash and profit are not the same. Cash is the life blood of a business. It drives daily operational decisions. Profit, on the other hand, is a relative metric (not measurement), dependent on the cost formula chosen. Executives and managers need to understand the difference and when to use each one.











About Dr. Reginald Tomas Lee



Dr. Lee is Professor of Operations and Management at Xaiver University. He is the author of five books including Lies, Damned Lies, and Cost Accounting and his latest Strategic Cost Transformation.



Reginald started his career as an engineer at IBM, and then worked in supply chain management at Ernst & Young. His consulting customers include Disney, DuPont, Home Depot and Toyota.



* Business Dynamics & Research (Consulting)* leer8@xaiver.edu (Email)
]]> Episodes Archives - Art Of Value full false 48:27 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Business Model of Tomorrow with Ed Kless – 127 https://artofvalue.com/the-business-model-of-tomorrow/ https://artofvalue.com/the-business-model-of-tomorrow/#respond Wed, 12 Dec 2018 15:30:40 +0000 http://artofvalue.com/?p=9759 In this episode, Ed Kless and I tackle the myth that economic development has reached its peak through technology, especially artificial intelligence. We explore the theme through three books: Life After Google by George Gilder, Tomorrow 3.0 by Michael Munger, and Subscribed by Tien Tzuo. This episode was recorded live at Kellys in Allen, TX–one […]

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]]> https://artofvalue.com/the-business-model-of-tomorrow/feed/ 0 In this episode, Ed Kless and I tackle the myth that economic development has reached its peak through technology, especially artificial intelligence. We explore the theme through three books: Life After Google by George Gilder, Tomorrow 3. In this episode, Ed Kless and I tackle the myth that economic development has reached its peak through technology, especially artificial intelligence. We explore the theme through three books: Life After Google by George Gilder, Tomorrow 3.0 by Michael Munger, and Subscribed by Tien Tzuo.







This episode was recorded live at Kellys in Allen, TX–one of our favorite places to have lunch. (If you are in town, be sure to try the brisket nachos.)





About Ed Kless



Ed Kless is my friend, mentor and colleague at the VeraSage Institute. He is the Director of Partner Strategy and Development at Sage Software. He is also host of the Sage Advice Podcast and co-host of The Soul of Enterprise with Ron Baker.
]]> Episodes Archives - Art Of Value full false 46:47 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing An Authentic After Action Review with Joe Woodard – 126 https://artofvalue.com/an-authentic-after-action-review/ https://artofvalue.com/an-authentic-after-action-review/#respond Thu, 06 Dec 2018 01:44:02 +0000 http://artofvalue.com/?p=9490 In this episode, Joe Woodard and I conduct an After Action Review on Scaling New Heights 2018. The conference was held in June 2018. This episode was recorded a couple of weeks later. Joe is very forthright about what went well, what did not, and what he learned for next time. About Joe Woodard Joe […]

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]]> https://artofvalue.com/an-authentic-after-action-review/feed/ 0 In this episode, Joe Woodard and I conduct an After Action Review on Scaling New Heights 2018. The conference was held in June 2018. This episode was recorded a couple of weeks later. Joe is very forthright about what went well, what did not, In this episode, Joe Woodard and I conduct an After Action Review on Scaling New Heights 2018. The conference was held in June 2018. This episode was recorded a couple of weeks later. Joe is very forthright about what went well, what did not, and what he learned for next time.









About Joe Woodard



Joe Woodard is the founder and CEO of Woodard Events. He is the host of Scaling New Heights, a conference for QuickBooks Pro Advisors. Joe has been recognized by Accounting Today as one of the Top 100 Influencers in accounting and is a regular contributor to Insightful Accountant.




]]> Episodes Archives - Art Of Value full false 53:27 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing A Bookkeeper Learns to Price with Carrie Mulrooney – 125 https://artofvalue.com/a-bookkeeper-learns-to-price/ https://artofvalue.com/a-bookkeeper-learns-to-price/#respond Thu, 29 Nov 2018 01:49:49 +0000 http://artofvalue.com/?p=9445 In this episode, Carrie Mulrooney and I discuss her transition from hourly billing to value pricing. She met Ron Baker at an accounting conference in 2015, and shortly thereafter, joined his Black Swan program. Within a year, she had converted most of her bookkeeping practice to value pricing. About Carrie Mulrooney Carrie Mulrooney is the […]

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]]> https://artofvalue.com/a-bookkeeper-learns-to-price/feed/ 0 In this episode, Carrie Mulrooney and I discuss her transition from hourly billing to value pricing. She met Ron Baker at an accounting conference in 2015, and shortly thereafter, joined his Black Swan program. Within a year, In this episode, Carrie Mulrooney and I discuss her transition from hourly billing to value pricing. She met Ron Baker at an accounting conference in 2015, and shortly thereafter, joined his Black Swan program. Within a year, she had converted most of her bookkeeping practice to value pricing.









About Carrie Mulrooney



Carrie Mulrooney is the founder and CEO of Mulrooney & Associates, a bookkeeping firm in Ontario, Canada. She is a Certified Professional Bookkeeper. Her firm was selected as the 2017 Bookkeeping Firm of the Year in Canada. She spends her summers in Nova Scotia (which is also known as northern Maine).



* LinkedIn* Facebook
]]> Episodes Archives - Art Of Value full false 37:58 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing It Is Not About the Technology with Jody Padar – 124 https://artofvalue.com/it-is-not-about-the-technology/ https://artofvalue.com/it-is-not-about-the-technology/#comments Mon, 11 Dec 2017 13:00:54 +0000 http://artofvalue.com/?p=9224 In this episode, Jody Padar and I discuss the impact technology has had on the accounting industry. And ironically, we conclude it is not really about the technology. It is simply forcing the profession to move in the direction it is should go anyway. About Jody Padar Jody Padar is a CPA with 25 years […]

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]]> https://artofvalue.com/it-is-not-about-the-technology/feed/ 1 In this episode, Jody Padar and I discuss the impact technology has had on the accounting industry. And ironically, we conclude it is not really about the technology. It is simply forcing the profession to move in the direction it is should go anyway. In this episode, Jody Padar and I discuss the impact technology has had on the accounting industry. And ironically, we conclude it is not really about the technology. It is simply forcing the profession to move in the direction it is should go anyway.









About Jody Padar



Jody Padar is a CPA with 25 years of experience. She founded New Vision CPA Group out of her frustration with “old school” firms. Her latest book is the The Radical CPA, written to help accountants create a better experience for their customers and employees.



* jody@newvisioncpagroup.com (Email)* @jodypadarcpa (Twitter)* LinkedIn
]]> Episodes Archives - Art Of Value full false 58:51 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Does Technology Replace or Liberate? with Jeff Kofman – 123 https://artofvalue.com/does-technology-replace-or-liberate/ https://artofvalue.com/does-technology-replace-or-liberate/#respond Thu, 30 Nov 2017 13:00:22 +0000 http://artofvalue.com/?p=9160 In this episode, Jeff Kofman and I discuss his journey from journalism to tech startup CEO. Jeff explains how he came up with the idea for Trint.com, an AI (artificial intelligence) transcription service. He then shares insights into the pricing strategy for their SaaS (software as a service) product. About Jeff Kofman Jeff Kofman is […]

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]]> https://artofvalue.com/does-technology-replace-or-liberate/feed/ 0 In this episode, Jeff Kofman and I discuss his journey from journalism to tech startup CEO. Jeff explains how he came up with the idea for Trint.com, an AI (artificial intelligence) transcription service. He then shares insights into the pricing strate... In this episode, Jeff Kofman and I discuss his journey from journalism to tech startup CEO. Jeff explains how he came up with the idea for Trint.com, an AI (artificial intelligence) transcription service. He then shares insights into the pricing strategy for their SaaS (software as a service) product.









About Jeff Kofman



Jeff Kofman is the Founder and CEO of Trint. Trint creates a transcription from a recording with timestamped links from the text to audio. Before founding Trint, Jeff was a news correspondent for CBC, CBS and ABC. He won an Emmy for his coverage of the Arab Spring in 2011.



* jeff@trint.com (Email)



Sample Transcription



Below is an example of a Trint transcript with no manual editing.



[00:00:00] Welcome to THE ART OF VALUE show Jeff Kofman. Jeff is the CEO and founder of Trint dot com. Trint started at an Italian Air B and B in 2014 prior to founding Trent. Jeff has been a news correspondent for CBC CBS and ABC. He actually won an Emmy for his coverage of the Arab Spring in 2011 and he speaks English French and Spanish. Jeff welcome to the show.



[00:00:28] Well thanks Kurt. Thanks for inviting me.



[00:00:30] Well it's a pleasure. I learned of Trint, I can't remember how I think it was in a Facebook group and when I learned about the service I thought you know what this would make an interesting topic for the show. But before we get into that what's the most important thing you could share about pricing customers aren't always looking for the lowest price they're looking for the best value.



[00:00:51] And I think for someone like me it was a first-time entrepreneur I spent my life as a journalist and I think oh my gosh if we raised prices will they run away. But not if they see value. I think there's an axiom that I've run into many times which says that startups usually underpriced their product and I can understand why because you don't want to scare people away when you're trying to attract customers. But the thing is you've got to charge what makes you a sustainable company. And in our case, we have a huge amount of innovation in our pipeline. And so, if we're going to be a viable business and so far, we're very much viable.



[00:01:28] We need to be able to charge a price that allows us to build a team that can build the product that people like you and me as a journalist and so many other people describe that tension between OK we want to make sure we get customers but yet realizing the value that you're creating for the customer and pricing appropriately for that. How do you resolve that tension or how would you suggest somebody who is trying to work through that approach it?



[00:01:56] I think pricing strategy is one of the biggest puzzles of the journey for me on the startup because partly what is challenging about trends is that we're inventing something that has no precedent. And so, we look really hard for models that take lessons from you know we transcribe recorded audio and video in the cloud through artificial intelligence using automated speech and get you the mechanism on the tree to editors to get perfect. That's always been the conundrum really cool that you can be you can ask our other major speech recognition to do so well but it makes mistakes. And for that reason, for me you know my 30 years in journalism flawed data is useless data. I can't if I can't verify I can't use it. And what Trint did was find a way to do that so you know we try to measure what.]]> Episodes Archives - Art Of Value full false 48:44 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Emotional Blind Spots Influence Your Pricing with Wes Higbee – 122 https://artofvalue.com/emotional-blind-spots-influence-pricing/ https://artofvalue.com/emotional-blind-spots-influence-pricing/#respond Tue, 14 Nov 2017 13:00:23 +0000 http://artofvalue.com/?p=9127 In this episode, Wes Higbee and I explore the impact that emotional blindspots can have on the success or failure of a software project. The first challenge is they are blind (unseen). The second is they are rooted in emotion (feelings). Wes explains how to overcome both challenges. About Wes Higbee Wes Higbee is the […]

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]]> https://artofvalue.com/emotional-blind-spots-influence-pricing/feed/ 0 In this episode, Wes Higbee and I explore the impact that emotional blindspots can have on the success or failure of a software project. The first challenge is they are blind (unseen). The second is they are rooted in emotion (feelings). In this episode, Wes Higbee and I explore the impact that emotional blindspots can have on the success or failure of a software project. The first challenge is they are blind (unseen). The second is they are rooted in emotion (feelings). Wes explains how to overcome both challenges.









About Wes Higbee



Wes Higbee is the principal consultant at Full City Technology. He has a background in .NET and JavaScript development. Recently, he made the transition from software developer to consultant. He helps organizations increase the success rate of their internal software projects.



* weshigbee.com (Blog)
]]> Episodes Archives - Art Of Value full false 53:24 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Using YouTube to Establish Authority with Hector Garcia – 121 https://artofvalue.com/using-youtube-to-establish-authority/ https://artofvalue.com/using-youtube-to-establish-authority/#respond Tue, 07 Nov 2017 13:00:03 +0000 http://artofvalue.com/?p=9102 In this episode, Hector Garcia and I discuss the impact creating videos for YouTube has had on his business. If you go to any popular accounting conference, Hector is probably speaking on marketing with YouTube. We explore why video, why YouTube, and the things he has learned through marketing with video. About Hector Garcia Hector […]

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]]> https://artofvalue.com/using-youtube-to-establish-authority/feed/ 0 In this episode, Hector Garcia and I discuss the impact creating videos for YouTube has had on his business. If you go to any popular accounting conference, Hector is probably speaking on marketing with YouTube. We explore why video, why YouTube, In this episode, Hector Garcia and I discuss the impact creating videos for YouTube has had on his business. If you go to any popular accounting conference, Hector is probably speaking on marketing with YouTube. We explore why video, why YouTube, and the things he has learned through marketing with video.









About Hector Garcia



Hector is a CPA who was selected as one of the Top 10 QuickBooks Advisors for 2017 and awarded Top 40 Under 40 by CPA Practice Advisor. He graduated from Florida International University with four degrees: marketing, finance, taxation and accounting. He has one of the top YouTube channels for QuickBooks users with over 2 million views.



* hectorgarcia.com (Website)* hector@hectorgarcia.com (Email)
]]> Episodes Archives - Art Of Value full false 58:15 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Impact of Technology on Value with Joe Woodard – 120 https://artofvalue.com/the-impact-of-technology-on-value/ https://artofvalue.com/the-impact-of-technology-on-value/#respond Wed, 01 Nov 2017 00:06:41 +0000 http://artofvalue.com/?p=9089 In this episode, Joe Woodard and I explore the impact technology has on the value you create for your customer. Joe explains why, although you cannot ignore technology, it is only a tool to achieve the desired outcome for your customer. Then, we explore the theme Rise of the Machines for Scaling New Heights 2017. […]

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]]> https://artofvalue.com/the-impact-of-technology-on-value/feed/ 0 In this episode, Joe Woodard and I explore the impact technology has on the value you create for your customer. Joe explains why, although you cannot ignore technology, it is only a tool to achieve the desired outcome for your customer. Then, In this episode, Joe Woodard and I explore the impact technology has on the value you create for your customer. Joe explains why, although you cannot ignore technology, it is only a tool to achieve the desired outcome for your customer. Then, we explore the theme Rise of the Machines for Scaling New Heights 2017.









About Joe Woodard



Joe Woodard is the Founder and CEO of the Woodard Companies, a preferred training partner for Intuit. Woodard is the creator of Scaling New Heights, a conference for QuickBooks ProAdvisors. He was recently selected one of the Top 100 Most Influential People in accounting by Accounting Today.



* @joewoodard (Twitter)
]]> Episodes Archives - Art Of Value full false 53:23 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Pricing, Procurement & the Ad Agency with Tom Lewis – 119 https://artofvalue.com/pricing-procurement-and-the-ad-agency/ https://artofvalue.com/pricing-procurement-and-the-ad-agency/#comments Wed, 10 May 2017 12:00:57 +0000 http://artofvalue.com/?p=8806 In this episode, Tom Lewis and I discuss the state of value pricing in advertising in the United Kingdom. Our conversation explores having an effective value conversation with procurement. Then, he shares insights from the keynote speakers at the 2017 IPA conference in London. About Tom Lewis Tom Lewis is Financial Director at the Institute […]

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]]> https://artofvalue.com/pricing-procurement-and-the-ad-agency/feed/ 3 In this episode, Tom Lewis and I discuss the state of value pricing in advertising in the United Kingdom. Our conversation explores having an effective value conversation with procurement. Then, he shares insights from the keynote speakers at the 2017 ... In this episode, Tom Lewis and I discuss the state of value pricing in advertising in the United Kingdom. Our conversation explores having an effective value conversation with procurement. Then, he shares insights from the keynote speakers at the 2017 IPA conference in London.









About Tom Lewis



Tom Lewis is Financial Director at the Institute of Practitioners in Advertising (IPA) in Great Britain. He is the leader for the commerce “pillar” at the IPA. Although he is a Chartered Accountant, he has over 15 years experience in advertising.



* LinkedIn* @TomLewis_IPA (Twitter)
]]> Episodes Archives - Art Of Value full false 49:35 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Who, What and Why of Value with Ed Kless – 118 https://artofvalue.com/the-who-what-and-why-of-value/ https://artofvalue.com/the-who-what-and-why-of-value/#comments Wed, 19 Apr 2017 12:00:54 +0000 http://artofvalue.com/?p=8789 In this episode, Ed Kless and I discuss his recent trip to Australia. He was in Melbourne to present a strategy workshop and speak at Sage Summit 2017. We explore the strategy framework of Why, Who, What and How. Then, we review his sessions from Sage Summit, Healing Leadership and Innovation Beyond Technology. About Ed Kless […]

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]]> https://artofvalue.com/the-who-what-and-why-of-value/feed/ 2 In this episode, Ed Kless and I discuss his recent trip to Australia. He was in Melbourne to present a strategy workshop and speak at Sage Summit 2017. We explore the strategy framework of Why, Who, What and How. Then, In this episode, Ed Kless and I discuss his recent trip to Australia. He was in Melbourne to present a strategy workshop and speak at Sage Summit 2017. We explore the strategy framework of Why, Who, What and How. Then, we review his sessions from Sage Summit, Healing Leadership and Innovation Beyond Technology.









About Ed Kless



Ed Kless is my friend, mentor and colleague at the VeraSage Institute. He is the Director of Partner Strategy and Development at Sage Software. He is also co-host of The Soul of Enterprise with Ron Baker.



* edkless.com (Blog)* @edkless (Twitter)
]]> Episodes Archives - Art Of Value full false 45:19 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Prevention: The Next Legal Frontier with Carr and Lamb – 117 https://artofvalue.com/prevention-the-next-legal-frontier/ https://artofvalue.com/prevention-the-next-legal-frontier/#respond Mon, 27 Mar 2017 12:00:10 +0000 http://artofvalue.com/?p=8781 During this episode, Jeffrey and Patrick explain why the best legal problem is the one you never have. They share their experience as customer and attorney, and then colleagues helping Fortune 1000 companies create a culture of risk prevention. About Jeffery Carr Jeffry Carr is the Former Senior Vice-President and General Counsel at FMC Technlogies. While […]

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]]> https://artofvalue.com/prevention-the-next-legal-frontier/feed/ 0 During this episode, Jeffrey and Patrick explain why the best legal problem is the one you never have. They share their experience as customer and attorney, and then colleagues helping Fortune 1000 companies create a culture of risk prevention. During this episode, Jeffrey and Patrick explain why the best legal problem is the one you never have. They share their experience as customer and attorney, and then colleagues helping Fortune 1000 companies create a culture of risk prevention.









About Jeffery Carr



Jeffry Carr is the Former Senior Vice-President and General Counsel at FMC Technlogies. While at FMC, he hired Patrick Lamb of Valorem Law to help prevent lawsuits from ever occurring. Fast forward, Jeffrey joined Valorem Law as the head of Valorem Next, their consulting division focused on identifying and managing risk.



Contact Jeffrey Carr & Patrick Lamb



* @ValoremNextCarr (Jeffery, Twitter)* @ValoremLamb (Patrick, Twitter)
]]> Episodes Archives - Art Of Value full false 47:21 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Commercial Litigation for a Fixed Price with Patrick Lamb – 116 https://artofvalue.com/commercial-litigation-for-a-fixed-price/ https://artofvalue.com/commercial-litigation-for-a-fixed-price/#respond Mon, 13 Feb 2017 13:00:03 +0000 http://artofvalue.com/?p=8762 In this episode, Patrick Lamb and I discuss his experience implementing value pricing at his law firm, and then consulting with other firms. Next, we explore the state of the business of law from the Value Line Adjustment to the Great Reset of 2008. About Patrick Lamb Patrick Lamb is the founder and a partner […]

The post Commercial Litigation for a Fixed Price with Patrick Lamb – 116 appeared first on Art Of Value.

]]> https://artofvalue.com/commercial-litigation-for-a-fixed-price/feed/ 0 In this episode, Patrick Lamb and I discuss his experience implementing value pricing at his law firm, and then consulting with other firms. Next, we explore the state of the business of law from the Value Line Adjustment to the Great Reset of 2008. In this episode, Patrick Lamb and I discuss his experience implementing value pricing at his law firm, and then consulting with other firms. Next, we explore the state of the business of law from the Value Line Adjustment to the Great Reset of 2008.









About Patrick Lamb



Patrick Lamb is the founder and a partner at Valorem Law, which practices commercial litigation for a fixed price. He has 34 years experience as a trial lawyer for Fortune 1000 companies.



Patrick is the author of Alternative Fees for Litigators and Their Clients, advocating value pricing for law firms. He writes the New Normal column for American Bar Association Journal.



* @valoremlamb (Twitter)* patricklamb@valoremlaw.com (Email)



What difference does it make?
]]> Episodes Archives - Art Of Value full false 43:12 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Value Pricing in the Accounting 100 with Michelle Golden – 115 https://artofvalue.com/value-pricing-in-the-accounting-100/ https://artofvalue.com/value-pricing-in-the-accounting-100/#comments Mon, 06 Feb 2017 13:00:13 +0000 http://artofvalue.com/?p=8746 In this episode, Michelle Golden and I discuss her experience pursuing the adoption of value pricing at KCoe Isom. Our conversation covers the “better way” of pricing, the advantage of options and the “add-on” strategy. We conclude with the impact of value pricing on new employees. About Michelle Golden Michelle Golden is a Partner and […]

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]]> https://artofvalue.com/value-pricing-in-the-accounting-100/feed/ 1 In this episode, Michelle Golden and I discuss her experience pursuing the adoption of value pricing at KCoe Isom. Our conversation covers the “better way” of pricing, the advantage of options and the “add-on” strategy. In this episode, Michelle Golden and I discuss her experience pursuing the adoption of value pricing at KCoe Isom. Our conversation covers the “better way” of pricing, the advantage of options and the “add-on” strategy. We conclude with the impact of value pricing on new employees.









About Michelle Golden



Michelle Golden is a Partner and Growth Strategist at KCoe Isom, an Accounting 100 firm. Her responsibilities include value creation and pricing strategy.



Michelle has been recognized as one of the 100 Most Influential People in accounting. She is a Senior Fellow at the VeraSage Institute and the author of Social Media Strategies for Professionals.



* Emgolden@kcoe.com (Email)
]]> Episodes Archives - Art Of Value full false 54:05 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Value Pricing for Business Counsel with Peter Carayiannis – 114 https://artofvalue.com/value-pricing-for-business-counsel/ https://artofvalue.com/value-pricing-for-business-counsel/#respond Mon, 30 Jan 2017 13:00:40 +0000 http://artofvalue.com/?p=8724 Peter Carayiannis started his legal career with a national law firm in Canada. Later, while working as a solo attorney, he discovered his niche, general business counsel to corporations. Peter then founded Conduit Law, which has become Deloitte Conduit Law, an affiliate of Deloitte. Among his unique qualifications, he is licensed to practice law in the United States and Canada. Switching to […]

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]]> https://artofvalue.com/value-pricing-for-business-counsel/feed/ 0 Peter Carayiannis started his legal career with a national law firm in Canada. Later, while working as a solo attorney, he discovered his niche, general business counsel to corporations. Peter then founded Conduit Law, Deloitte Conduit Law, an affiliate of Deloitte. Among his unique qualifications, he is licensed to practice law in the United States and Canada.
Switching to Value Pricing
What is the most important thing you can share about pricing?
It is not that hard. Clients do not hire a lawyer to buy time (hours). They are seeking a solution to a problem.
How did you first realize the billable hour was not the way to operate your business?
Peter had early success with entrepreneurial clients. He realized his customers might not call when they should because the clock was running. When he discovered fixed fees, he realized it would encourage his clients to talk to him more frequently.
How did your existing customers react when you said you wanted to change how you were doing business?
They welcomed it with enthusiasm and questions about how it would work. Peter was candid with his clients. They had a conversation about what the client wanted to achieve and selected a number based on experience. Then they met in 90 days to review and adjust as necessary.
What metrics do you use to track progress and success with your clients?
The metrics are tailored to the client and the nature of the work. For example, if Conduit Law is helping the sales function, they will track how many contracts and the total revenue they supported in a quarter to help the sales team close business.
Succeeding with Value Pricing
Does value pricing work in a traditional law practice, where lawyers are working primarily offsite?
Yes, for example, Valorem Law in Chicago does value pricing for corporate litigation. In Peter's business, the first tier of pricing is for what he calls “run the company” work. It is consistent, repeating business. The second tier is per piece work, a set price each time a certain event happens. His goal is to provide budget certainty and pricing transparency for his customer.
Do you use options when you sit down with a customer to price the next quarter?
Yes, for example, the level of access. Should the lawyer be available 24 x 7, or business days 9am-5pm? Does the customer need a longer or shorter turn-around time?
What is the Client Value Adjustment?
It is a statement at the bottom of the invoice that invites the client to adjust the invoice, up or down, to reflect the value created. It has only be exercised by Peter's clients four times, three of which were an increase. (He credits Patrick Lamb of Valorem Law with the idea.)
 What do you think is the future of value pricing in the legal field?
It is a client-driven movement. Furthermore, it in the early-adoption phase. However, if more graduating law students will challenge the billable hour, it will slowly create the momentum necessary.
What is one of your best stories about creating value for a customer?
Conduit Law was invited by a financial institution to bid on a short-term project. The client was unsure of the exact scope but had a hard deadline for the outcome. The client asked Peter to include an incentive plan.
Peter offered the client one fee for a simple matter and a higher fee for a complex matter. The client had the authority to decide what was a simple or complex matter.
Peter also offered a bonus plan. The client could increase or decrease the total budget by 20% at the end of the project, solely on factors like timeliness, responsiveness, and quality. Conduit Law won the business and received the full bonus.
Contact Peter Carayiannis

* Website – Deloitte.ca
]]> Episodes Archives - Art Of Value full false 46:02 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing WordPress News Is Not A Commodity with Brian Krogsgard – 113 https://artofvalue.com/wordpress-news-not-commodity/ https://artofvalue.com/wordpress-news-not-commodity/#respond Mon, 23 Jan 2017 13:00:20 +0000 http://artofvalue.com/?p=8655 Brian Krogsgard is a WordPress developer from Birmingham, AL. He is the founder and editor of Post Status, a WordPress newsletter, and the host of Post Status Draft, a podcast for WordPress developers. He started working with WordPress in 2010, after graduating from Auburn University with a degree in mechanical engineering. Starting As a WordPress […]

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]]> https://artofvalue.com/wordpress-news-not-commodity/feed/ 0 Brian Krogsgard is a WordPress developer from Birmingham, AL. He is the founder and editor of Post Status, a WordPress newsletter, and the host of Post Status Draft, a podcast for WordPress developers. He started working with WordPress in 2010, Post Status, a WordPress newsletter, and the host of Post Status Draft, a podcast for WordPress developers. He started working with WordPress in 2010, after graduating from Auburn University with a degree in mechanical engineering.
Starting As a WordPress Developer
What is the most important thing you can share about pricing?
Pricing is not “one size fits all.” It varies depending on the customer,  context, and degree of risk. The objective should be to maximize value for the customer and profit, not revenue, for the business.
What was your journey to becoming a freelancer?
His first development position was at a small agency, helping clients transition from a proprietary CMS to WordPress. At the next agency, Brian was the operations manager. He was responsible for determining scope, setting prices and presenting proposals to customers.
He started pricing websites by the number of pages or functional modules. Over time, he learned to price by the number of leads and average revenue per lead that the website would create for the customer.
What is the difference between developing websites and construction projects?
The progress of a construction project is very visible to the client. However, a website is not something a client can drive by and see. Regular communication is necessary to convey progress to the client.
Did the agencies where you worked compete through price or specialization?
The first agency was a full-service design shop, mainly in the state of Alabama. Their strongest competitive advantage was personal relationships, building trust with the customer.
The second agency was a boutique firm, focusing on high-end WordPress sites. Customers were attracted to their expertise even when the price was higher than the competition.
Making the Transition to Publisher
What did you learn from writing the article How much should a custom WordPress website cost?
The article was written in 3 hours one night from his frustration writing customer proposals. The feedback to the article helped Brian build a framework of the most common factors when setting a price. The article was viewed over 50,000 times in the first few weeks alone. The short answer to the question is, “It depends.”
What was your journey from free news to paid memberships with Post Status?
Brian learned web development by writing about WordPress. He started PostStatus in 2013, after writing WordPress news for other sites. Then in 2015, he began the transition to a paid membership site for $99 per year. The site has grown to 700+ paid members.
What did you learn about pricing membership sites?
There are three ways to buy PostStatus. First, a dozen companies are sponsors because of Brian's reputation in the WordPress community. Second, individuals can pay either $99 or $365 annually. $99 is the sweet spot, an impulse buy. $365 is a patron level, supporting the artist.
What is one of your best stories about creating value for a customer?
Each year, Brian chooses a non-profit to which he contributes his consulting services. It is an opportunity to keep his skills sharp and help a cause in which he believes.
Contact Brian Krogsgard

* Website – PostStatus.com
* Twitter – @krogsgard

]]> Episodes Archives - Art Of Value full false 47:07 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Making the Switch at a Large Firm with Simmons & Barnes – 112 https://artofvalue.com/making-switch-large-firm/ https://artofvalue.com/making-switch-large-firm/#respond Mon, 16 Jan 2017 13:00:48 +0000 http://artofvalue.com/?p=8558 Dan Simmons is the Managing Director of the Lantern Legal Group, and Andrew Barnes is the Chief Financial Officer. The company is the largest regional law firm in Australia. Andrew is also President of the Australasian Legal Management Practice Association (ALMPA). This interview was recorded during a trip to the United States with John Chisholm. We […]

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]]> https://artofvalue.com/making-switch-large-firm/feed/ 0 Dan Simmons is the Managing Director of the Lantern Legal Group, and Andrew Barnes is the Chief Financial Officer. The company is the largest regional law firm in Australia. Andrew is also President of the Australasian Legal Management Practice Associa... Lantern Legal Group, and Andrew Barnes is the Chief Financial Officer. The company is the largest regional law firm in Australia. Andrew is also President of the Australasian Legal Management Practice Association (ALMPA).
This interview was recorded during a trip to the United States with John Chisholm. We discussed making the switch from hourly billing to value pricing at a firm of 100+ employees.
First Impressions of Value Pricing
What is the most important thing you can share about pricing?

* Dan – The ability to agree to the price and payment terms up front with the client is beneficial to the practice of law.
* Andrew – Pricing should be different tomorrow than it was yesterday. Hourly billing has an expiration date.
* Dan – Value pricing helps their law firm comply with Uniform Law in Australia. Uniform Law states, for any matter over $750, the lawyer must provide an estimate of the fee to the client.

Why did you decide to make the switch to value pricing?

* Dan – Lantern Legal operates as three brands. Harwood Andrews serves a broad range of clients including family law and local municipalities. Sladen Legal focuses on business clients, especially in Melbourne. Adley Burstyner specializes in class action litigation.
* Andrew – Ron Baker and Paul O'Bryne made convincing presentations to the leadership of the firm about value pricing.
* Dan – The firm needed a better way to attract and reward the next generation of lawyers than tracking hours in 6-minute increments.

What was your initial reaction when you learned about value pricing?

* Andrew – It was exciting to learn about the concept. Since the firm had to continue to do business, a strategy was developed to transition over time.
* Dan – After two years of promoting value pricing on their webiste–Agreed Pricing in their lexicon–the firm started offering of at least one alternative fee arrangement to every client. It is a progression that is starting to snowball as the firm grows more confident in its ability to judge value and set prices.
* Andrew – The performance of lawyers has traditionally been measured by the number of billable hours. Part of the transition is choosing new metrics for performance.
* Dan – Currently, the firm allocates a portion of each fixed price to each attorney based on his or her role. However, the firm is moving toward attributing revenue to the practice group, away from individual performance metrics.

What has been the reaction of younger attorneys to the practice of value pricing?

* Andrew – They are very enthusiastic when discussing the concept. The challenge is to keep the momentum going in the day-to-day practice. Those who have previously billed by the hour now call it the “Dark Ages.”
* Dan – There is peer pressure to use Agreed Pricing when a matter is referred from one practice group, that uses value pricing, to another which does not. Also, the firm rotates seats on its pricing council to expose more attorneys to the practice of value pricing.

The Advantages of Value Pricing
What is a pricing council?

* Andrew – It is a group of attorneys including principals and first-year associates who review the scope and pricing of every matter over $5,000. Submissions are made using a standard template and feedback is provided by e...]]> Episodes Archives - Art Of Value full false 48:10 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Determining the Value of the Intangible with Nick Disabato – 111 https://artofvalue.com/determining-value-intangible/ https://artofvalue.com/determining-value-intangible/#respond Mon, 09 Jan 2017 13:00:19 +0000 http://artofvalue.com/?p=8360 Nick Disabato is the founder of Draft, a design consultancy in Chicago. He is best known for A/B testing through two productized services, Draft Revise and Revise Express. He is the author of three books including The A/B Testing Manual. Nick is a frequency speaker at conferences including South by Southwest and Web 2.0. The Business of […]

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]]> https://artofvalue.com/determining-value-intangible/feed/ 0 Nick Disabato is the founder of Draft, a design consultancy in Chicago. He is best known for A/B testing through two productized services, Draft Revise and Revise Express. He is the author of three books including The A/B Testing Manual. Draft, a design consultancy in Chicago. He is best known for A/B testing through two productized services, Draft Revise and Revise Express. He is the author of three books including The A/B Testing Manual. Nick is a frequency speaker at conferences including South by Southwest and Web 2.0.
The Business of Design
What is the most important thing you can share about pricing?
You set the pricing. You control the conversation by asking the right questions, setting proper expectations, and solving the right expensive problem. You have to overcome “imposter syndrome” and charge for the value you are providing.
How do you determine the value of something intangible?
Cite case studies for the same service, either your own or from another business. There are 50 years of data and articles that prove design creates value. Read the blogs of designers who understand design serves commerce. Communicate how design solves real business problems.
What is your advice to a designer, fresh out of school?
Realize design is art in the service of client work so you can sell things. Read books about having a business in the design field. Then decide if you really want to be a business owner.

* Design Is a Job
* You Are My Favorite Client
* Million Dollar Consulting
* Profit First

How can you leverage case studies from other designers?
Cite them. Link to them. If someone stands behind it, use it as evidence of the value of design. The likelihood your customer will hire the other company is less than you think. Nick cites the $300M Button Case Study by Jared Spool in his marketing.
Determine the ROI of Design
How do you translate a design into an ROI (return-on-investment)?
During the project, measure as much as possible, for example, revenue tracking in Google Analytics. After the project, ask the customer what they got out of it. Then, ask the customer to for a case study. Follow up with the customer three, six and twelve months afterward.
How do you approach the value conversation during the sale process?
Start with the Alan Weiss trifecta: Why me? Why now? Why in this manner?
Other questions: How much are you making right now? Where are the leaks you think exist in your business? What is your website traffic? What is your conversion rate? In summary, start a conversation by asking questions.
Listen to the customer and then probe further. Demonstrate your desire to serve by helping the customer understand the business problem deeper. It shows the customer you have a sincere interest in his success.
 Episodes Archives - Art Of Value full false 42:17 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Most Important Thing About Pricing Vol. 3 – 110 https://artofvalue.com/important-thing-pricing-vol-3/ https://artofvalue.com/important-thing-pricing-vol-3/#respond Sun, 01 Jan 2017 13:00:35 +0000 http://artofvalue.com/?p=8329 For the third straight year, Art of Value is celebrating the New Year with a compilation from the past twelve months. At the start of each show, I ask the same question: What is the most important thing you can share about pricing? In this episode, we revisit the answers from 30 of the expert […]

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]]> https://artofvalue.com/important-thing-pricing-vol-3/feed/ 0 For the third straight year, Art of Value is celebrating the New Year with a compilation from the past twelve months. At the start of each show, I ask the same question: What is the most important thing you can share about pricing? In this episode, What is the most important thing you can share about pricing?
In this episode, we revisit the answers from 30 of the expert guests from 2016.

* Raise your rates on a regular basis. – The Value of Social Media with Mojca Marš
* Charge more. – A Masterclass in Creating Options with Keith Perhac
* It starts in your brain. – The Value of Telling A Story with Michael Hudson
* Pick a lane. – Picking Your Value Lane with Jeffrey Shaw
* It doesn't have to be that hard. – Going Timeless in the Legal Profession with Beth MacLean


* The key to higher prices is to deliver more value to your clients. – How to Create Value Through Positioning with Philip Morgan
* Pricing can be systematized. –  Learn to Value Price Through a Process with Andrew Robertson
* Finding the value for the customer and relating your price to that value. – Creating Proposals That Win Business with Curtis McHale
*
The value of the product or service is determined by the customer. – The Mindset for Creating Value with Dennis McIntee

* Invest in authentic relationships. – Compensating Your Team Based on Value with Christopher Marston


* Take a risk and offer a proposal with options. – Singing the Praises of Value Pricing with BJ Lee
* Pricing is part of a mental negotiation between the seller and buyer. – The Mental Health of the Entrepreneur with Cory Miller
* Start with the customer first. – Seek the Desired Outcome First with Lincoln Murphy
* The meeting is over once you start discussing price. – Learning the Art of Frame Control with Oren Klaff
* Embrace what you are worth. – Value and Pricing in the Enterprise with Matthew Habuda


* There is more to pricing than the number the customers pays. – A Value Conversation for the Solopreneur with Eric Davis
* You are charging less than you should be. – How the Customer Decides to Buy with Sean D’Souza
* Value pricing is more profitable than the alternatives. – Value Pricing Is A Competitive Advantage with Michael Bradley
* You are never going to get the price exactly right.]]> Episodes Archives - Art Of Value full false 40:53 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Be Nice: The Rules of Customer Service with Lee Cockerell – 109 https://artofvalue.com/nice-rules-customer-service/ https://artofvalue.com/nice-rules-customer-service/#respond Mon, 26 Dec 2016 13:00:42 +0000 http://artofvalue.com/?p=8239 Lee Cockerell was a guest a previous episode of the Art of Value Show. At the end of that show, Lee suggested we do another interview to discuss the rules of customer services from his book The Customer Rules. While we will not cover all 39 rules, we will cover a dozen or so during this […]

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]]> https://artofvalue.com/nice-rules-customer-service/feed/ 0 Lee Cockerell was a guest a previous episode of the Art of Value Show. At the end of that show, Lee suggested we do another interview to discuss the rules of customer services from his book The Customer Rules. While we will not cover all 39 rules, previous episode of the Art of Value Show. At the end of that show, Lee suggested we do another interview to discuss the rules of customer services from his book The Customer Rules. While we will not cover all 39 rules, we will cover a dozen or so during this episode.
Lee is a former Senior Vice President of Operations at Walt Disney World Resort. He is the author of three books, with a fourth due in late 2016. He is a teacher at Thrive15 and Sports Mind Institute. His website is LeeCockerell.com.
Acting Like a Professional
What is the most important thing you can share about pricing?
Is the customer getting good value for the price? When a customer questions Lee's speaking fee, he reminds them: Price is what you pay, value is what you get. Value can be expensive and is worth it. Lee recently experienced great customer service from a flooring contractor at his home.
In The Customer Rules, Lee says he is a student of customer service wherever he goes. He learned the art of great customer service by working at Hilton Hotels, Marriott Hotels and Disney World. Lee shared a story of receiving outstanding service while applying for the SAM program to do business with the federal government.
What did your grandchildren say is the most important rule in customer service?
Lee's 12-year-old granddaughter said, “Be nice.” And his 10-year-old grandson said, “When you serve, you are always the giving one.” Sometimes the simplest answers come from children.
How could the political parties in the United States apply The Customer Rules?
Focus on having integrity by not denigrating the character of others. Your reputation is defined by who you are and what you say. Are you helping people? Are you making a difference? Set an example of high integrity.
What is the significance of Rule #8: Always act like a professional?
At Disney World, Lee told his team, “You don't have to be happy to work at Disney. You have to act happy for 8 hours.” Professionals stay professional. Never raise your voice to a customer or employee. The US military is an outstanding example of being a professional on the job. Being professional is not a title. It is a behavior. Everyone can act professionally.
What is the meaning of Rule #4: Don't get bored with the basics?
The basics are manners, courtesy, honesty, trustworthiness, being a gentleman or a lady. Walt Disney said, “Keep it clean and friendly, and everything will be fine.” No matter how good someone is, how good are they?
What is the significance of Rule #7: Look sharp?
Even though times have changed, there are certain things about your appearance that will either enhance or hurt your income. Human Resources will not tell you, but you will not get promoted. First impressions are everything. If you do not look sharp, you are taking a chance. Your image affects how people perceive your judgment.
Serving Like a Professional
What is the story behind Rule #15: Be like a bee?
A young girl at Disney World once asked Mr. Disney, what do you do? His response was, “I am like a bee. I buzz around the whole company looking for good ideas. When I find one, I share it with another department. I am the pollen and the pollinator. I make sure the best ideas are pollinated around the company.”
]]> Episodes Archives - Art Of Value full false 48:19 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Align Value with Your Target Market with Aaron Vidas – 108 https://artofvalue.com/align-value-target-market/ https://artofvalue.com/align-value-target-market/#respond Mon, 19 Dec 2016 13:00:32 +0000 http://artofvalue.com/?p=8179 Aaron Vidas is the founder of StrategyBox, a marketing consultancy for $50M companies. In this episode, we discuss realigning your value proposition with a new target market. In the first segment, Aaron explains how he realized he was not aligned and the steps he took to change it. In the next segment, we explore how […]

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]]> https://artofvalue.com/align-value-target-market/feed/ 0 Aaron Vidas is the founder of StrategyBox, a marketing consultancy for $50M companies. In this episode, we discuss realigning your value proposition with a new target market. In the first segment, Aaron explains how he realized he was not aligned and t... StrategyBox, a marketing consultancy for $50M companies. In this episode, we discuss realigning your value proposition with a new target market. In the first segment, Aaron explains how he realized he was not aligned and the steps he took to change it. In the next segment, we explore how to research a new target market through interviews and conferences. He concludes with a couple of pricing stories from his experience.
Aligning Your Value Proposition
What is the most important thing you can share about pricing?
You have to have alignment with the customer, not simply agreement. Agreement is when someone nods their head during a conversation. Alignment is when they take action to support the course of action to which they agreed.
How did you discover you had an alignment/pricing problem in your business?
During a run, Aaron had a realization that his customers loved the marketing plan he created but they had trouble executing on it. He then asked the question, “Am I doing the right thing for the wrong audience?” He created a new business plan and then interviewed a couple of CEOs in the new target market to verify his hypothesis.
Was the decision process more emotional or analytical?
It was both. From an emotional standpoint, it felt like a monumental decision. It was a slow crescendo in frustration over time. Then the final straw that broke the camel's back.
For the analysis, Aaron asked two questions, “Do I need to create different value for the same customers?” or “Do I need to create the same value for different customers?” Then he went to a cabin for the weekend and crunched the numbers.
His coach helped with the emotional and analytical aspects. The value of an outside perspective is that without objectivity there is no innovation. Aaron suggests the book From Darwin to Monger to learn about cognitive bias in decision-making.
How did you make the shift to serving a different customer?
His first challenge was age-bias. Would the CEO of a $50-million company listen to a twenty-something consultant? Aaron overcame it by interviewing potential customers. He also learned he would have to change the form of the offering.
Next, Aaron took steps to position himself as an authority for his target market. He wrote a couple of white papers and booked speaking opportunities at conferences attended by his new customers.
Researching a New Target Market
How did you overcome the intimidation of interviewing potential customers?
It is OK to be uncomfortable. Have the courage to ask, “Would this be helpful to your company? If not, why not?” Learn who they are and what is the problem you can help solve.
The conversation is not a zero-sum game. Not only do you receive valuable feedback, you can help the interviewee generate new ideas. You serve the customer by asking how to create value for them.
How do you research how the customer creates, captures and communicates value?
Aaron recommends the book The Business Model Canvas. It provides a framework to understand how a business operates. It teaches you how to ask questions to understand the cost of a problem and the value to solve it.
How do you find the conferences your target customers are attending?
Once you have your foot in the door at one conference,]]> Episodes Archives - Art Of Value full false 50:26 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing After You Create Value, Profit First with Mike Michalowicz – 107 https://artofvalue.com/create-value-profit-first/ https://artofvalue.com/create-value-profit-first/#respond Mon, 12 Dec 2016 13:00:20 +0000 http://artofvalue.com/?p=8107 Mike Michalowicz has created three multi-million dollar companies and is the author of four published books including Profit First and Surge. His is a former columnist for the Wall Street Journal. One of his unique skills is using mnemonics to memorizes his keynote speeches. I (Kirk) was recently a guest on his podcast, Grow My […]

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]]> https://artofvalue.com/create-value-profit-first/feed/ 0 Mike Michalowicz has created three multi-million dollar companies and is the author of four published books including Profit First and Surge. His is a former columnist for the Wall Street Journal. One of his unique skills is using mnemonics to memorize... Profit First and Surge. His is a former columnist for the Wall Street Journal. One of his unique skills is using mnemonics to memorizes his keynote speeches. I (Kirk) was recently a guest on his podcast, Grow My Accounting Practice.
In this episode, Mike and I discuss his book Profit First. The thesis of the book is profit should be taken out of your revenue first, before expenses, instead of after. Mike used this strategy to rebuild his business after losing his first fortune.
Defining Profit First
What is the most important thing you can share about pricing?
You have to address the biggest critic of your pricing, which is you. Mike goes through an exercise where he quadruples the price of a product. Then he creates value to match the price. Next, he cuts the price of the product by half. The result is the value increases 4x and price increases 2x. He has addressed the value conversation first and the price conversation second.
The purpose of Mike's company is to “irradiate entrepreneurial poverty.” It is the motivation behind the book Profit First, which grew from Mike's financial failure. Once you and your team have a clear picture of your mission, selling becomes a form of serving.
Why is “profit first” important?
Entrepreneurial poverty is when the business makes money, but the owner(s) does not take money out of the business. Mike's original solution was to sell more. However, expenses always seemed to increase in proportion to revenue.
Then Mike found a study that said 83% of small businesses in the US exist check to check. Meaning, if they do not receive the next check in time, they will not be able to cover payroll and expenses. Are entrepreneurs really smart enough to earn revenue and yet not take home a profit?
Mike discovered a behavioral theorem called Parkinson's Law, which states that based upon the availability of an item or resource, our behavior will change to match its supply. For example, we adjust the amount of toothpaste we use based on how much is left in the tube.
Profit First leverages Parkinson's Law by taking profit out of the business first. The remainder is for expenses, which forces the business to be frugal and innovative. Profit First is the discipline to reverse engineer profit in your business.
What is the formula you use to calculate profit?
The traditional formula is:
Sales – Expenses = Profit
The traditional formula is based on the logic of accounting. Whatever is left over after expenses is profit. The problem is profit is the last priority.
The Profit First formula is:
Sales – Profit = Expenses
The Profit First formula is based on human behavior. It makes profit a higher priority than expenses. It forces the business to spend only what is left after profit.
Profit is not an event that occurs at the end of the year. It is a daily practice in your business. By depositing profit into a separate bank account, before any expenses are paid, you enforce the discipline of Profit First.
Implementing Profit First
What principle is shared by Profit First and the Total Money Makeover by Dave Ramsey?
]]> Episodes Archives - Art Of Value full false 47:40 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Revenue Generation for Ecommerce with Kurt Elster – 106 https://artofvalue.com/revenue-generation-ecommerce/ https://artofvalue.com/revenue-generation-ecommerce/#respond Mon, 05 Dec 2016 13:00:44 +0000 http://artofvalue.com/?p=8098 Kurt Elster is an e-commerce consultant who specializes in the Shopify platform. He is a founder and partner at EtherCycle, and host of the Unofficial Shopify Podcast. He earned his MBA from Illinois Institute of Technology. Kurt is a newlywed, and the theme for his wedding was “Day of the Dead,” the Mexican version of Halloween. […]

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]]> https://artofvalue.com/revenue-generation-ecommerce/feed/ 0 Kurt Elster is an e-commerce consultant who specializes in the Shopify platform. He is a founder and partner at EtherCycle, and host of the Unofficial Shopify Podcast. He earned his MBA from Illinois Institute of Technology. Kurt is a newlywed, Shopify platform. He is a founder and partner at EtherCycle, and host of the Unofficial Shopify Podcast. He earned his MBA from Illinois Institute of Technology. Kurt is a newlywed, and the theme for his wedding was “Day of the Dead,” the Mexican version of Halloween.
Focusing On a Single Product
What is the most important thing you can share about pricing?
Charge more. In the e-commerce space, businesses regularly undercharge and then go straight to discounting to move product. People tend to undervalue themselves and their brand. It is rooted in misunderstanding their value proposition.
Because it is so easy to comparison shop on the internet, price shoppers will usually go directly to Amazon, assuming it is the lowest price. This means customers for smaller brands maybe value, rather than price, shoppers by default.
Who is a customer you have helped develop a premium position?
Everest Bands sells replacement bands for Rolex watches. They incorrectly assumed their customer wanted to customize their Rolex. After conducting a survey, they learned their customers had an active lifestyle and wanted to avoid scratching the original band.
They asked their customer two questions. 1) Would you recommend this product to a friend? 2) To what kind of person would you recommend it and why? Ironically, the customer wound up describing how they see themselves and the reason they bought.
How was Everest Bands able to leverage their premium position?
They changed the message of their marketing to “preserve your Rolex's bracelet by buying an aftermarket one.” The value proposition became an insurance policy for an $8,000 watch. A year later they added a bracelet-preserving case to their products.
What is the most common mistake you see in e-commerce?
Not focusing on a single pain, single product, and single message. When you have a singular focus, you can really understand who the customer is, why they buy and the lifecycle of the product. Then you can scale the product line or move sideways into companion products.
You cannot experiment with your pricing until you understand your positioning. Then you can use anchor pricing and bundling to your advantage.
How did you transition to become an e-commerce consultant?
Ethercycle started by narrowing once, and then again and again. They went from generalist to e-commerce to Shopify to revenue generation for Shopify stores. Kurt asked his best customers what he did best to learn their perspective.
How did you choose the five criteria on your Why Ethercycle page?
Kurt actively disqualifies leads because he only wants to work with his best customers. This allows him to work with customers he really enjoys and quote premium prices. Being picky about your customers allows you to charge more and attract more quality customers.
Focusing On Revenue Generation
What is revenue generation?
The common strategy is conversion rate optimization. Remove the friction in the buying process to increase the percentage of customers who purchase. However, other strategies include increasing customer lifetime value, increasing average order value, or creating subscription revenue.
For example, increasing customer lifetime value. It is easier to sell to the same customer twice than to two different customers once. Kurt worked with a custom mouthguard supplier to create a Facebook campaign to sell the second mouthguard at a 25% discount.
Do you recommend offering options for e-commerce?
Yes. You can do anchor pricing against your own products. Or you can offer a bundle of a product with some accessories.]]> Episodes Archives - Art Of Value full false 47:21 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Legacy of Value and Pricing with Paul Kennedy – 105 https://artofvalue.com/legacy-value-pricing/ https://artofvalue.com/legacy-value-pricing/#respond Mon, 28 Nov 2016 13:00:46 +0000 http://artofvalue.com/?p=8082 Paul Kennedy is a co-founder and partner at O'Byrne & Kennedy (OBK), a chartered accounting firm in the United Kingdom. He is also a Practicing Fellow at VeraSage. In this episode, we explore the OBK journey to value pricing. In the first segment, Paul explains how OBK transitioned to value pricing over a 5-6 year […]

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]]> https://artofvalue.com/legacy-value-pricing/feed/ 0 Paul Kennedy is a co-founder and partner at O'Byrne & Kennedy (OBK), a chartered accounting firm in the United Kingdom. He is also a Practicing Fellow at VeraSage. In this episode, we explore the OBK journey to value pricing. In the first segment, O'Byrne & Kennedy (OBK), a chartered accounting firm in the United Kingdom. He is also a Practicing Fellow at VeraSage. In this episode, we explore the OBK journey to value pricing. In the first segment, Paul explains how OBK transitioned to value pricing over a 5-6 year period. During the second segment, Paul discusses the influence of value pricing on their customers and services.
The Switch to Value Pricing
What is the most important thing you can share about pricing?
Pricing is worthy of the attention of every business owner. Even a small change in price can have a disproportionate impact on profitability. However, few service professionals give it the consideration it deserves. This is the pricing paradox.
What was your first exposure to value pricing?
Paul Kenney went to an Accounting Bootcamp taught by Paul Dunn and Rick Payne. They taught that accountants could offer more value if they simply did what their clients needed. Paul K. came back and started focusing on creating value for clients.
Later his business partner, Paul O'Byrne, went on a speaking tour with Ron Baker. Due to Ron's influence, O'Byrne & Kennedy stopped tracking time in their accounting practice. They came to refer to their business as the “Ron Baker laboratory”.
O'Byrne & Kennedy learned value pricing in three stages.

* Start pricing in advance.
* Offer the customer options.
* Stop pricing your own work.

What advice would you give to a firm that is ready to make the transition?

* Determine how you create value.
* Determine for whom you create it.
* Select your strongest value proposition.
* Write a proposal and price on purpose.
* Believe you create value and experiment.

How has the CitizenM Hotel avoided the commodity trap?
The hotel selected a target market they call “mobile.” They tailored the value they create specifically for those travelers. The room key is delivered from a kiosk. The rooms are small, with high-quality mattresses, blackout shades, and free wifi. The lobby is a large open area with a 24-hour coffee bar. They only offer services their guests truly want. (Disruptive Business Models by Paul K.)
The Practice of Value Pricing
Why do you advocate firing the customer every year?
At the end of each contract, the client is technically no longer a customer. OBK asks the client if they delivered the value that was expected. They also ask the client what they could do better in the future. OBK does not assume the client will remain a customer.
What is the OBK MBA?
OBK targets business owners who believe they can do something extraordinary with their business. OBK found these individuals were very aware of their personal development. They created an educational framework to teach their customers what they need to operate a successful business called the OBK MBA.
How do you approach the value conversation with a customer?
Paul has a very candid conversation with the customer about their goals and how OBK can help achieve them. Occasionally, he has to be sensitive that now is not the right time for a conversation. Ultimately, he wants to provide the services the client truly needs and those can only be uncovered through a value conversation.
What is the state of value pricing in the United Kingdom?
It is common for professional firms to offer fixed prices. However, it is market driven. Value pricing is not very well understood.
]]> Episodes Archives - Art Of Value full false 51:59 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Value of Significance with Aaron Walker – 104 https://artofvalue.com/value-significance/ https://artofvalue.com/value-significance/#respond Mon, 21 Nov 2016 13:00:04 +0000 http://artofvalue.com/?p=7997 Aaron Walker founded View From the Top to help men live a life of significance. In this episode, we discuss his journey from the pawn business to coaching men. In the first one, we explore being the right fit for the customer. During the second segment, Aaron describes selling and pricing in the pawn business. In […]

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]]> https://artofvalue.com/value-significance/feed/ 0 Aaron Walker founded View From the Top to help men live a life of significance. In this episode, we discuss his journey from the pawn business to coaching men. In the first one, we explore being the right fit for the customer. View From the Top to help men live a life of significance. In this episode, we discuss his journey from the pawn business to coaching men. In the first one, we explore being the right fit for the customer. During the second segment, Aaron describes selling and pricing in the pawn business. In the third segment, Aaron explains what significance is and why it matters.
Are You the Right Fit?
What is the most important thing you can share about pricing?
Be fair to the customer. You can shear a sheep often, but you can only skin it once. It is taking a long-term perspective.
How do you determine the endresult the customer is seeking?
The worst mistake a salesperson can make is waiting for his turn to talk. Instead, spend your time listening to the customer. Be more interested the customer's need than making the sale.
What is a recent story where you told a customer, “We are not a good fit”?
Aaron recently said “no” to a coaching customer who wanted to rise within the corporate ranks. He knew the customer's need/goal was not something with which he could help.
Selling in the Pawn Business
What did you learn about pricing from the pawn business?

* Pawn shops make their money off the loans, not merchandise sales.
* If the price does not match the value, it will be harder to make the sale.

How do you handle an opportunity when you really need the sale?
You will make the most of the sales by focusing on the needs of the customer. You have to remove the pressure of making the sale. If the customer senses the tension, it will repel him rather than attract him.
What was it like selling to Dave Ramsey listeners at the pawn shop?
They expected a deal because Aaron's shop was an advertiser on Dave's radio show. Dave offered Aaron a free week of advertising the first time they met. Aaron has been a paid advertiser for 21 straight years.
A Life of Significance
What is the value of a mastermind group to a business owner?
The group provides accountability, encouragement, resources, ideas, and perspective. The collective IQ of the group increases dramatically because “There is wisdom in the counsel of the multitude.” A decision made by the group is wise because the members are trusted and objective.
When serving the customer, how can you make sure you are “walking the walk”?
Develop the mindset of a giver, not a taker. For example, write an endorsement or video testimonial for someone who deserves it, without them asking for it. Also, look for the opportunity to serve someone who cannot pay you back.
What does it mean to live a life of significance?
Money is important to your success. However, it is not the most important thing. Having the ability to set your own schedule as an entrepreneur is also important. Relationships with your family and peers are the most important factor to your success.
Significance is helping those who cannot help you. Spend 30% of your time doing things for other people.
About Aaron Walker

* Website – ViewFromTheTop.com
* Free Gift – ViewFromTheTop.com/AOV

]]> Episodes Archives - Art Of Value full false 43:25 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Freedom of Value Pricing with Chris Blunt – 103 https://artofvalue.com/freedom-value-pricing/ https://artofvalue.com/freedom-value-pricing/#respond Mon, 14 Nov 2016 13:00:09 +0000 http://artofvalue.com/?p=7979 Chris Blunt is a software developer from the United Kingdom and a member of the Art of Value Society. In this episode, we discuss his transition from hourly billing to value pricing. In segment one, we explore his motivation to move from hourly rates to pricing on value. During the second segment, Chris explains how […]

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]]> https://artofvalue.com/freedom-value-pricing/feed/ 0 Chris Blunt is a software developer from the United Kingdom and a member of the Art of Value Society. In this episode, we discuss his transition from hourly billing to value pricing. In segment one, we explore his motivation to move from hourly rates t... Art of Value Society. In this episode, we discuss his transition from hourly billing to value pricing. In segment one, we explore his motivation to move from hourly rates to pricing on value. During the second segment, Chris explains how he transitioned from a vendor to partner with his customers. In the last segment, Chris describes his early success with value pricing.
Escape from Tracking Time
What is the most important thing you can share about pricing?
When you are pricing the value to the customer, there is no magic formula you can apply. The price you determine is based on everything you have done to understand what the customer needs.
What was your inspiration to implement value pricing?
 Chris began to reach a limit on his hourly rate. He first learned of value pricing in the book Double Your Freelancing. Then he discovered the book Value-Based Fees Value-Based Fees by Alan Weiss.
What has been the best advantage of switching to value pricing?
It is easier to present a proposal to a customer. Chris is more at ease during the presentation than he was with hourly billing. Writing a proposal has become easier. It is shorter and focuses on the outcome rather than the technical requirements.
What was the most significant challenge you had to overcome to switch to value pricing?
The internal fear of quoting the wrong price. You have to take a risk and start. The more you set a price based on value, the better you become.
Partnering with the Customer
How do you approach the value conversation with the customer?
Chris has learned to take a step back and focus on why they want to achieve the result rather than the technical side. What is the reason you want to complete this project? It helps the customer clarify their needs.
What is one of your favorite ways to create options for a customer?
Offering the customer three options. Creating options is one of the easiest changes to make when switching to value pricing. It changes the way to approach writing a proposal.
Why did you choose to share your switching experience with a public blog?
It was a way to hold himself accountable as he made the switch. After considering value pricing for several months, he wanted extra motivation to price the customer per the value rather than hourly billing. He also wanted to encourage others to make the same change.
Value Pricing Your First Project
Can you describe the first project you wrote about on your value pricing blog?
He offered an existing customer three options for a one-week project. He offered one price for project A, a second price for project B, and a cumulative price for project A and B together. The customer was extremely happy they did not receive a “surprise” bill for extra hours.
 Can you describe another project you wrote about involving a service plan?
The service plan is a new strategy Chris is using with most customers. It was not based on the number of hours per month. It was based on the scope of access to Chris and the scope of the maintenance. Chris included monitoring performance of the software as part of the service plan.
What is one of your best stories about creating value for a customer?
Chris had a testimonial from one of his first customers. “In just a few hours, Plymouth  Software saved us thousands of pounds in time and resources.”
About Chris Blunt

* Website – PlymouthSoftware.]]> Episodes Archives - Art Of Value full false 50:23 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Designing Value for Your Online Course with Janelle Allen – 102 https://artofvalue.com/designing-value-online-course/ https://artofvalue.com/designing-value-online-course/#respond Mon, 07 Nov 2016 13:00:03 +0000 http://artofvalue.com/?p=7958 Janelle Allen is a learning designer of online courses at Zen Courses and the host of the Zen Courses Show. In this episode, we discuss how to create significant value for your course. In the first segment, we explore the most important factor, learner success. During the next segment, she explains how to determine what success […]

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]]> https://artofvalue.com/designing-value-online-course/feed/ 0 Janelle Allen is a learning designer of online courses at Zen Courses and the host of the Zen Courses Show. In this episode, we discuss how to create significant value for your course. In the first segment, we explore the most important factor, Zen Courses and the host of the Zen Courses Show. In this episode, we discuss how to create significant value for your course. In the first segment, we explore the most important factor, learner success. During the next segment, she explains how to determine what success is for the learner. Then in the last segment, we review the most successful pricing strategy for online courses.
The Learner-Focused Approach
What is the most important thing you can share about pricing?
Pricing is based on contextual data. The more you know about your audience and why they buy from you, the easier it is to create options and set a price.
What is a learning or instructional designer?
A professional who studies how adults learn and then applies learning theory and principles to education mediums.
What is the value of working with a learning designer?
You create your course with a focus on learner success rather than content marketing. Everything starts with the goal for the learner. What tools do they need to be successful? How do they prefer to engage with the material?
Getting to Know Your Learner
How do you take a learner-focused approach when creating an online course?

* Ask the learner what they should be able to do after completing the course. Once you know the answer, work backward to design the material to achieve the result.
* Next, focus on the learner journey. Where will the learner start? What obstacles will the learner encounter during the course? How can you encourage the learner to complete it?

What is the most common mistake when creating an online course?
Think about your results first–your revenue, your profit–instead of thinking about the goal of the learner. Focus on the educational outcome and then create the sales and marketing strategy.
How can you get to know your learner better?

* Create an email list with regular content so you learner can interact with you.
* Survey your email list to gather information about their needs and wants.
* Conduct short Skype interviews with learners to get a deeper perspective.

What is the relationship between consulting and creating an online course?
Consulting allows you to get to know your customers intimately. You can understand opportunities, problems, and challenges from their point of view.
Pricing Your Online Course
What is the most important metric to measure the success of your students?

* What is the desired outcome for the learner to be able to achieve?
* What are the objectives necessary to reach the outcome?
* What activities do they need to complete those objectives?

How do you approach pricing an online course?
Tiered pricing is the key strategy. Offer your customers different value at different prices. Although three is the best number of options, it is helpful to start with two options and learn what your audience wants. Pricing is an iterative process.
What is a learning platform you like for creating online courses?
Thinkific provides great features for creating activities to measure and encourage learner success.
What is one of your best stories about creating value for a customer?
Janelle helped Pearson Education create a biology course for a nursing program. She designed a new learning model that increased student success by 25%.
About Janelle Allen

* Website – ZenCourses.co
* Podcast – Zen Courses Show
* Twitter – @JanelleAllen

]]> Episodes Archives - Art Of Value full false 48:05 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Narrative Is the Medium for Value with Chris Lema – 101 https://artofvalue.com/narrative-medium-value/ https://artofvalue.com/narrative-medium-value/#comments Mon, 31 Oct 2016 12:00:34 +0000 http://artofvalue.com/?p=7906 Chris Lema is a software product strategist and daily blogger at ChrisLema.com. In this episode, we discuss value pricing in the enterprise market and creating membership sites. During the first segment, we explore selling software to large customers through story and value. In the second segment, Chris explains why a subscription service is actually a […]

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]]> https://artofvalue.com/narrative-medium-value/feed/ 1 Chris Lema is a software product strategist and daily blogger at ChrisLema.com. In this episode, we discuss value pricing in the enterprise market and creating membership sites. During the first segment, we explore selling software to large customers t... ChrisLema.com. In this episode, we discuss value pricing in the enterprise market and creating membership sites. During the first segment, we explore selling software to large customers through story and value. In the second segment, Chris explains why a subscription service is actually a membership site and how to maximize revenue with pricing.
Selling to the Enterprise
What is the most important thing you can share about pricing?
Never put a price in front of a customer until you understand what is motivating them. The customer's perception of value is different than yours. You need to understand their back story.
Is selling software to the enterprise different than to small-medium business?
The length of the sales cycle is extended for the enterprise. There are more stakeholders. It takes longer to understand the complexity of the back story. Consequently, the dynamics of pricing are also different.
How do you handle a value conversation in the enterprise?

* When a customer asks for something, have a value conversation to understand why they need it.
* Next, create options to give the customer choices with various prices, timeframes, and outcomes.
* Then, develop a narrative from the perspective of the stakeholders and frame your product/service as an accelerator.

How is selling a product different from selling a service?
For Chris, selling a product is easier because you can create one narrative for each market segment instead for each customer. In the enterprise, bundling customization (services) with a product is a strategic advantage.
Pricing for Membership Sites
What are some pricing models for membership sites?
The most common is a monthly subscription. However, the average monthly revenue is $17 and the subscription term is 4-6 months. A yearly subscription can create a more sustainable business. Another model is a lower membership fee and higher prices for premium content.
What are some stand-out membership sites?

* MatterMark – Provides research data to salespeople for $500 per month.
* Subscription Insider – Provides research data for membership sites for $60 per month.
* ConvertKit or Drip – Email marketing automation starting under $100 per month.

Why is a subscription service really a membership site?
A subscription is a monthly financial transaction. Membership is being a part of something. The question is what does being a member mean? What is the narrative (or value) to which you belong?
What is one of your best stories about creating value for a customer?
Chris helped Roar create version 1.0 of their product using existing software. The company was able to prove there was a viable market for $20K. Later the company was sold for 7-figures.
About Chris Lema

* Website – ChrisLema.com
* Twitter – @ChrisLema

]]> Episodes Archives - Art Of Value full false 49:50 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Foundation of Wealth Is Wisdom with Rabbi Daniel Lapin – 100 https://artofvalue.com/foundation-wealth-wisdom/ https://artofvalue.com/foundation-wealth-wisdom/#comments Tue, 25 Oct 2016 20:59:26 +0000 http://artofvalue.com/?p=7845 Daniel Lapin is best known as America's Rabbi. In this episode, we discuss his book Business Secrets From the Bible. In the first segment, he defines “ancient Jewish wisdom” and then defines business, money, and wealth from a Biblical perspective. During the next segment, we contrast the spiritual and physical nature of business. In the last […]

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]]> https://artofvalue.com/foundation-wealth-wisdom/feed/ 2 Daniel Lapin is best known as America's Rabbi. In this episode, we discuss his book Business Secrets From the Bible. In the first segment, he defines “ancient Jewish wisdom” and then defines business, money, and wealth from a Biblical perspective. Business Secrets From the Bible. In the first segment, he defines “ancient Jewish wisdom” and then defines business, money, and wealth from a Biblical perspective. During the next segment, we contrast the spiritual and physical nature of business. In the last segment, we explore attitudes of wealth and the consequence of each.
The Definition of Wisdom
What is the most important thing you can share about pricing?
Business is too complex to have a single most important thing. One important concept is to focus on what you are delivering to the recipient. Become aware of the value you are creating for the other person.
What is ancient Jewish wisdom?
The Jewish people are disproportionally good with money because they have learned tips, tools, and techniques for handling money from the Old Testament. Business Secrets of the Bible was written to share that knowledge with everyone.
What is “business”?
Business is a person or organization that has customers.
What is money?
Money is a certificate of good performance. It is proof you have served one of God's children.
What is the definition of wealth?
“Rich” and “fair” do not have clear definitions because they are comparative. Wealth is similar. It depends on the context of the situation.
The Nature of Business
Why is business a spiritual activity, not a physical activity?
Because money is spiritual. It is an abstract metric of how much value is delivered.
What is the significance of 92 natural elements to business?
You can create the mission for a business by combining two other ideas. Almost everything you eat, drink or use is a combination of other elements or chemical compounds.
Why do you ask the question “How do you serve humanity?”
Because you do not work from a selfish motivation. You work to serve other human beings.
What is the relationship between morals and morale?
Morale is important because you cannot sell anything without a positive self-image. Morals, your perception of right and wrong, has a significant influence on your self-image.
What is the relationship between change and courage?
Most human beings like variety but resist change. Change is scary because it hurts. Courage helps embrace change despite fear.
What is the definition of courage? 
Courage is the ability to banish the instinctive reaction to fear and function using your head, not your heart.
The Attitude of Wealth
What is the opposite of the Hebrew word for wealth?
If you read the Hebrew word for wealth backward, it is the word “wicked.” The lack of money is the result of bad decisions you made in the past.
Why is it important to feel right about money, rather than think right?
Emotions influence our actions more than ideas. You need to sow financial wisdom in your heart, so it becomes intuitive.
Why is it important to have different words for “earning” vs. “winning” money?
Making and taking money are two different things. Winning is simply good fortune. Making is a deliberate action to earn money by serving others.
Why should you listen to the speaker at graduation with caution?
The most common advice is to find something you love for a living. Instead, find something to serve other people and learn to love it.
About Rabbi Daniel Lapin

* Book – Episodes Archives - Art Of Value full false 49:37 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing To Increase Value, Create an Experience with Joe Pine – 099 https://artofvalue.com/increase-value-create-experience/ https://artofvalue.com/increase-value-create-experience/#comments Wed, 01 Jun 2016 12:00:32 +0000 http://artofvalue.com/?p=7414 Creating an experience means that work becomes a performance for which you charge an admission fee. What would you have to revise to sell a ticket to engage with your business? The answer to this question can launch your business beyond the first three stages of economic value–commodity, goods and services–to the fourth stage, the experience.

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]]> https://artofvalue.com/increase-value-create-experience/feed/ 2 Creating an experience means that work becomes a performance for which you charge an admission fee. What would you have to revise to sell a ticket to engage with your business? The answer to this question can launch your business beyond the first three... The Progression of Economic Value

* What is the most important thing you can share about pricing?

* You are what you charge for.

* If you charge for undifferentiated stuff, you are a commodity.
* If you charge for tangible things, you are in the goods business.
* If you charge for the activities you and your people perform, then you are in the services business.
* If you charge for the time your customers spend with you, you are in the experience business (staging a memorable and engaging experience).
* If you charge for the demonstrated outcome your customers achieve, you are in the transformation business.


* There is no more economic value you can provide than to help someone achieve his aspirations.
* Goods and services are no longer enough, as consumers only care about price.




* What do you mean by “What would we have to do different if we charged an admission fee”?

* An admission fee is charging for time.
* Companies give away their next level of value to better sell what they have today.
* IBM means service, which meant that they gave away whatever service you wanted, as long as you bought the product.

* Eventually, they realized that the people only cared about the services and the equation flipped.


* Think about how you charge for time to align what customers value with what you charge.
* Assume you are charging an admission fee and you will acquire the wherewithal to create a great experience.
* We increasingly pay people for our experiences.
* When you made a birthday cake from raw ingredients, it was less expensive than the value created in a cake mix.

* Then you would order a cake at a bakery, and it is more expensive than the mix.
* Now you outsource the whole party to Chuck E. Cheese, and it is even more expensive.


* You create more value as you step up the progression of economic value.




* What would it take for a hotel, doctor or bank to create an experience?

* Some hotels now charge for 24-hour periods, realizing that they are charging for time, not just activities.
* In the healthcare industry, the better the patient experience, the better the outcome.

* Waiting rooms are one of the worst parts of the healthcare experience.
* What if you could immediately get into the flow of care, even if it started through technology?


* Most banks made the lions share of their profits off fees when you make a mistake.

* One bank started charging for people to talk to a teller vs. use the ATM.


* What if you “charged admission” and made it worth it to visit with the live person?
* ING wanted physical touch points for its virtual banking services and created cafés across the country.

* They charged for the coffee, but not for admission, to signal there was a real business.
* The barista then engaged you, talking about your financial needs.
* Many banks have a café bar because it engages all 5 senses and it's where people want to spend time.


* Banks have an untapped resource, knowing what people are spending and for what they are spending it.
* Money is a means to an end, so the key is what is the end?
* If you can ascertain what a customer's aspiration is, and focus on helping them achieve it,]]> Episodes Archives - Art Of Value full false 57:38 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Discover Impact, Meaning and Feeling with Matthew Tol – 098 https://artofvalue.com/discover-impact-meaning-feeling/ https://artofvalue.com/discover-impact-meaning-feeling/#respond Tue, 24 May 2016 12:00:18 +0000 http://artofvalue.com/?p=7412 At times, value pricing can seem complex. However, if you boil it down to the core elements it is listening to the customer, discovering the impact and then creating options. Matthew Tol is passionate about the fundamentals and believes you should expand discovery to include the meaning and feeling to the customer to fully understand the value landscape.

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]]> https://artofvalue.com/discover-impact-meaning-feeling/feed/ 0 At times, value pricing can seem complex. However, if you boil it down to the core elements it is listening to the customer, discovering the impact and then creating options. Matthew Tol is passionate about the fundamentals and believes you should expa... Listen to the Customer

* What is the most important thing you can share about pricing?

* You are never going to get it right.

* Be approximately right, rather than precisely wrong. – Ron Baker


* It's about the customer and what he values.

* If you can articulate that, then he will get more involved in the engagement.


* There is a different price for everyone.
* You have to help the customer discover the value, letting him put it into his day-to-day work.
* Accounting looks backward telling you what happened.

* Value pricing looks forward.


* Be less prescriptive and more open to variables when you are pricing.
* It is a future-based process, to help the customer discover the value.




* How do you help a customer see the hidden value?

* The questions that you ask that start with “what” and “why” help the customer reframe the problem.
* Prescription without diagnosis is malpractice.
* Many times the customer doesn't know what the problem is.
* You are a guide to help the customer diagnose, which is when you can help them discover the value.
* Challenge the customer's answers to your questions and reframe them in a different context to take the conversation to a higher level.

* If you aren't challenging a customer's thinking, you are just a robot.


* Listen to what the customer is really saying.

* Stop rushing to conclusions.


* It's better to have the humility to tell a customer that you will work with them to solve the problem, rather than being a solutionist.
* Listen to respond, rather than listen to react.




* Can a professional learn to ask probing questions?

* Recruit specifically for people who have the potential to learn the skill and then train them.
* Each person has to develop his own style, but it is about the outcome you want to deliver.
* Don't forget to allow for silence.

* In a vacant space, most people will start blurting out the real issue.
* You get a far better outcome by letting silence be your friend.





Discover Impact, Meaning, and Feeling

* How did you make the transition to value pricing?

* In 2006, he made the switch, after discovering Ron Baker.
* In a traditional accounting firm, you have to record your life in 6-minute increments.
* He was always the last to do his time sheets, even though he was a partner.

* He felt recording your time and multiplying by an arbitrary rate was a waste of time.


* One thing that he found offensive about time-based billing system is the flashes fo brilliance you get are not billed.

* When you get the 30-second flash of brilliance in the shower or while fishing, and how do you charge that customer?


* It doesn't value the professional.
* They no longer have toxic relationships with their customers since unexpected bills are no longer sent.
* Engineers and accountants created the billable hour system, trying to make everyone extra efficient, without considering effectiveness.
* Adding value makes a difference.
* Recording time you spend on a file doesn't matter; the decision you make as a cons...]]> Episodes Archives - Art Of Value full false 49:33 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Value Pricing Is A Competitive Advantage with Michael Bradley – 097 https://artofvalue.com/value-pricing-competitive-advantage/ https://artofvalue.com/value-pricing-competitive-advantage/#respond Tue, 17 May 2016 12:00:01 +0000 http://artofvalue.com/?p=7410 As a profession, lawyers may be the most resistant to value pricing due to their conservative nature. However, this is the very reason Michael Bradley from Marque Lawyers considers it a strategic advantage. The outcome for the customer is the first priority. If Marque cannot create value for the customer, they will not engage simply to make money.

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]]> https://artofvalue.com/value-pricing-competitive-advantage/feed/ 0 As a profession, lawyers may be the most resistant to value pricing due to their conservative nature. However, this is the very reason Michael Bradley from Marque Lawyers considers it a strategic advantage. Changing The Practice of Law

* What is the most important thing you can share about pricing?

* Value pricing is more profitable than the alternatives.
* To effectively move to value pricing, you have to give up all the trappings of hourly billing.
* For his business, it took 2-3 years to make more money than they would have with hourly billing.

* But, it is a false comparison.


* If they hand not priced by value, they would not have that differentiation in the market.
* It gives you a powerful competitive edge.
* They would be near at the bottom of the market if they had not started value pricing.




* Why do you want to change the way law is practiced?

* The small group that started Marque Lawyers came from a big firm.
* While they liked being lawyers, they did not like the way law was being practiced.
* Many internal processes were dysfunctional and counter-productive.
* They wanted to be able to enjoy life, be happy, and be lawyers.

* Changing how they engaged on price was part of it.


* The way most lawyers charge has nothing to do with the value that the customer receives.

* They often pay too much for things of little value.


* As a lawyer in most firms, you are only evaluated by your billable hours, which has nothing to do with why you wanted to be a lawyer.
* It is a soulless way to look at what you do and is incredibly unsatisfying.
* It is insane to measure the value of people or customers in 6-minute increments.
* It also rewards inefficiency.
* With time costing, a lawyer would get paid the same if he were in court advocating for a customer or having a cup of coffee in the cafeteria with him.
* Customers and lawyers become mired in cynicism with hourly billing.
* By moving away from it, you can make both customers and lawyers enjoy the practice.
* Working with a lawyer does not have to be an ordeal.
* If there is a positive experience, the customer will want more.



Using a Retainer for Litigation

* How do you approach using a retainer with a customer?

* They spend time with the customer upfront to understand the legal needs.
* They reach a figure that is a fair reflection of the value they will provide.
* They start retainer for a few months on a trial basis, then review and adjust.

* Afterward, they review annually.


* The approach is inclusive, and they are focused on the clients' end goals.
* A retainer works like an insurance policy.
* “What happens if you ‘underprice' it?” usually means, “How does this compare to an hourly model?”
* The difference is in the point of focus – the next 6 minutes vs. the outcome.
* Only a small part of the value of a customer has to do with what you are doing for them today.
* Most of the value of a customer is exponential over many years.
* Put the emphasis on the relationship, rather than how much you get paid immediately.
* It is important that you demonstrate longevity to the customer and earn trust.
* When you engage a customer that way, the customer starts to understand the long-term relationship.




* How can you offer a retainer for litigation when the process is uncertain?

* The best pricing model is a hybrid that includes a retainer and a fixed-fee...]]> Episodes Archives - Art Of Value full false 44:58 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing How the Customer Decides to Buy with Sean D’Souza – 096 https://artofvalue.com/customer-decides-buy/ https://artofvalue.com/customer-decides-buy/#respond Tue, 10 May 2016 12:00:00 +0000 http://artofvalue.com/?p=7408 In The Brain Audit, Sean D'Souza uses an analogy of 7 bags, or pieces of luggage, to explain the sequence the brain goes through during the buying process. Open the bags one at a time, in the right order, and the customer will buy. Skip a bag or alter the sequence, and the customer cannot finish the steps to make a purchase.

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]]> https://artofvalue.com/customer-decides-buy/feed/ 0 In The Brain Audit, Sean D'Souza uses an analogy of 7 bags, or pieces of luggage, to explain the sequence the brain goes through during the buying process. Open the bags one at a time, in the right order, and the customer will buy. The Brain Audit, Sean D'Souza uses an analogy of 7 bags, or pieces of luggage, to explain the sequence the brain goes through during the buying process. Open the bags one at a time, in the right order, and the customer will buy. Skip a bag or alter the sequence, and the customer cannot finish the steps to make a purchase.
Start with the Profile, Problem, and Solution

* What is the most important thing you can share about pricing?

* You are charging less than you should be.
* The real estate agent, buyer, seller, and counsel all have different prices for the same house on the same street in the same market.
* You can get a lot more based on your uniqueness.
* You can get a lot less if you don't put that uniqueness forward.
* Uniqueness is the 7th bag in The Brain Audit.




* What is The Brain Audit?

* It is a system that shows what happens in your brain during the buying process.
* The analogy is that you put 7 red bags on a flight and after the flight lands you wait for your bags, but the 7th never comes out.
* When do you leave the airport?
* Most people don't because something is missing.
* Customers haven't bought or have hesitated because you haven't removed the 7 red bags from in their brain.
* Buyers go through the same steps regardless of the price of the item.
* Customers don't buy because you haven't provided information in the correct sequence.
* If you make the best offer in the world, but if it is in a different language, you still won't get the buyer to purchase.




* What is the first step in the sequence of the brain?

* The first step is identifying the target profile.
* Traditionally people identify a large target audience or a persona they create of someone who doesn't exist.
* A target profile interview beings with, “What frustrates you the most?”
* You get the real terminology, frustration, and emotion from your target.
* You first have to find a real person and discover what his biggest problem is.
* Drive home the problem to understand how it makes the real person feel and determine the consequences of how he feels.
* The first 3 bags unpacked are:

* Target profile
* The problem
* The solution


* Find someone who is very frustrated with a product or service if you don't have a large customer base from which to choose.
* You can build your product on that one person.
* The “good customer” doesn't exist; the person with a big frustration does.




* Why is the problem before the solution in the brain sequence?

* People tend to bring up the solution because you are taught to preach the benefits in sales.
* Your brain looks at the obstacles the whole time, to keep you alive.
* In doing so, it looks for problems, not solutions.
* Solutions don't register spikes in your brain, but problems do.
* Talk about the problem the target is having to get their attention.
* You don't have to make it a negative approach.
* Talk to the person like you would in reality.
* The first 3 bags are used to gain the customer's attention.




* What is a trigger?

* It is a subcomponent, like something you would use for a tagline.
* The trigger for The Brain Audit is Why Customers Buy (and Why They Don't).
* What you need to include for a great trigger is the profile, problem, and solution.
* The trigger instigates the conversation,]]> Episodes Archives - Art Of Value full false 48:42 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing A Value Conversation for the Solopreneur with Eric Davis – 095 https://artofvalue.com/value-conversation-solopreneur/ https://artofvalue.com/value-conversation-solopreneur/#respond Tue, 03 May 2016 12:00:31 +0000 http://artofvalue.com/?p=7234 Having a value conversation with the customer is important regardless of the size of your business. However, as a solopreneur, it is essential for survival. You have to determine what type of customer is necessary to operate a profitable business. Then use the value conversation to identify and educate customers that you can serve and with whom you enjoy working.

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]]> https://artofvalue.com/value-conversation-solopreneur/feed/ 0 Having a value conversation with the customer is important regardless of the size of your business. However, as a solopreneur, it is essential for survival. You have to determine what type of customer is necessary to operate a profitable business. What Is the Customer's Perception of Value?

* What is the most important thing you can share about pricing?

* There is more to pricing than the cost.
* Pricing is not just what someone is going to pay for it.
* Your perception, expertise, and abilities are part of it.
* Price is a component of the relationship with your customer.
* If you undercharge to win an engagement, you have colored yourself in a bad light.
* If you use pricing as part of your positioning strategy, it changes the perception to your customers.
* Is the customer looking at hiring a pair of hands or your brain?
* Once you state your price, it is very hard to change it.
*  If you have a relationship with your customer as an expert, you can engage in other areas.
* A customer was willing to train Eric because they wanted him to build it.




* How do you educate your customer about software development?

* If a customer is pursuing custom software development for the first time, you have to educate them about what is possible.
* Usually, they need to customize something that exists, but they do not know what they can do with it.
* Talk with the customer about the problems they are having and how you can help them gain greater benefits.
* A lot of the pre-sales education is identifying pain points and why the customer came to Eric.
* He educates not only on the value for what they asked but looks for opportunities to create more value.
* Often, they start with the original idea for a trial project to make sure it is a good fit. Then they book as much time as possible to continue working with him.




* How do you handle the high demand for your services as a solopreneur?

* His wife is in human resources, and he has heard the bad side of having employees. He felt like he could control the interaction with one customer each week.
* He pushes things back or helps the customer hire its own team to go faster if necessary.
* If there is a huge gap in the business, doing something minimal can cover the gap.
* He works with them on a schedule, budget, and value to prioritize work.
* Once you unlock the value that custom software can deliver, the customer sometimes feels like it is Christmas and asks for more.
* Constraints empower creativity.
* It is the consultant's job to help determine what is the biggest return at the moment.
* The list of features is prioritized based on the client's perception of value.
* His clients need to trust him for the software development, but he has to trust them in their unique business.
* Value, as a dollar amount only, is short sighted.
* When the customer admits there is no value and they still want him to do the code, he will engage the customer.



Creating Value Through a Conversation

* What is one of your favorite questions to ask during a value conversation?

* He starts the conversation via email.
* Asking questions by email lets Eric know if can communicate via email, which is necessary for his business model.
* He will ask them to tell him a bit about the problem to start a narrative with them.
* Once he gets them to open up, he starts to talk about the budget to set expectations.
* “Why did you come to me now?” is a question to unlock the urgency of the project.
* You will learn about the budget, decision maker,]]> Episodes Archives - Art Of Value full false 49:33 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Value and Pricing in the Enterprise with Matthew Habuda – 094 https://artofvalue.com/value-pricing-enterprise/ https://artofvalue.com/value-pricing-enterprise/#respond Tue, 26 Apr 2016 12:00:29 +0000 http://artofvalue.com/?p=7225 After discussing the limitations of hourly rates in a Facebook group, Matthew Habuda decided to give value pricing a chance. He started with a small project and progressed to a Fortune 500 opportunity. Along the way, he had to convince the customer and subcontractors it was the right decision. He shares his results and why he will never bill by the hour again.

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]]> https://artofvalue.com/value-pricing-enterprise/feed/ 0 After discussing the limitations of hourly rates in a Facebook group, Matthew Habuda decided to give value pricing a chance. He started with a small project and progressed to a Fortune 500 opportunity. Along the way, Top of Show Resources

* Without the Conversation, There is No Value Pricing, by Ed Kless
Kansas Supreme Court Says It’s Unethical Not to Track Your Time

The Switch to Value Pricing

* What is the most important thing you can share about pricing?

* Embrace what you are worth.
* Give yourself credit for what you bring to the table; do not devalue it.
* Most people tend to price themselves below market value.
* You are more likely to be accepted and engaged by your clientele if you put the real value on the table.




* What is the story of your switch to value pricing?

* He came from traditional consulting firms where everything was done by the hour.
* He adopted it because he saw it as the industry standard.
* His potential customers always led with, “What is your hourly rate?”
* He hit the top end of the hours he had available to trade.
* He was getting faster and his product was getting cheaper every day.
* The projects were getting bigger and that raised the question.
* The size of a new initiative was completely out of his pricing model.
* He could not do all the work alone and the client did not want to accept the hourly rate for the subcontractors because they were not as experienced.
* A bundle of services was required to offer the real value.
* It is more challenging to use an hourly model with a virtual business than an onsite model.




* Did the customer embrace or resist the switch to value pricing?

* Initially, the customer was hesitant because of hidden costs.
* The conversation naturally moved from people to deliverables.
* The customer was glad he didn't have to track hours. It saved the accounting team a lot effort to review the invoices.
* His invoice was reduced to 6 line items with a fixed fee.
* The support work was simplified for both.
* A results-based compensation model was added to the deal based on reaching a specific due date.
* Value pricing incentivizes finding wins for the customer.
* The ongoing relationship is one of the biggest benefits.
* The customer understood he wants to take care of their needs and his team.
* It has led to a lot of referrals.
* His take home was about 7% higher than it would have been otherwise.
* The real win was the fact that his subcontractors made 15% more.
* Each sub had a fixed dollar figure they were awarded based on the number of courses they facilitated ahead of schedule.




* Did your subcontractors embrace or resist value pricing?

* Tracking hours is the biggest nightmare when you are a consultant.
* It turns into 3-5 extra hours of work at the end of each week.
* The subs enjoyed the change and asked if they could work on more projects like this in the future.
* Nobody went to college to learn to fill out a timesheet.
* Some firms allocate 5 hours per person per week to fill in timesheets and expense reports.
* In a consulting world where 70-80 hours per week are common, giving those hours back makes it easier to retain good employees.
* By 2025, it is expected that 50% of the employment base in the ...]]> Episodes Archives - Art Of Value full false 47:28 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Learning the Art of Frame Control with Oren Klaff – 093 https://artofvalue.com/learning-art-frame-control/ https://artofvalue.com/learning-art-frame-control/#respond Tue, 19 Apr 2016 12:00:12 +0000 http://artofvalue.com/?p=7222 Oren Klaff is an expert at pitching and closing multi-million dollar investment deals. His closing rate is high because he has mastered the art of frame control. Frame control helps Oren capture and keep the investor's interest during a presentation. The same concepts apply when you are having a value conversation. When you encounter resistance […]

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]]> https://artofvalue.com/learning-art-frame-control/feed/ 0 Oren Klaff is an expert at pitching and closing multi-million dollar investment deals. His closing rate is high because he has mastered the art of frame control. Frame control helps Oren capture and keep the investor's interest during a presentation. What Is Frame Control?

* What is the most important thing you can share about pricing?

* Most the pitches that request Oren's help include features, benefits, and economics early in the presentation.
* However, once you start discussing price, the meeting is over.
* It is not a good method for selling products and services.




* What is the “croc brain”?

* Think of the mechanics of how the brain functions.
* How you talk, speak and calculate come from the neocortex (smart part of the brain).
* When you meet someone and start a conversation, the information coming from your neocortex is going to their crocodile (lower) brain, which manages new information.
* The crocodile brain is wondering if the information is something it wants to eat or kill.
* You have to work your way upward, past the crocodile brain, and into the midbrain before you earn the trust necessary to get to the neocortex.
* Features and benefits cannot be understood by the crocodile and midbrain.
* Tailor what you say to the way the brain works.
* Once you have a good pitch, it should work for anyone.
* Rock bands and comedians do not change their shows based on where they are performing.




* What is frame control?

* In any social interaction (which includes sales and business), you cannot have two different perspectives for the same product or service and achieve a deal.
* A frame is simply a perspective.
* Looking out different windows gives different perspectives, resulting in different emotions.
* People have to look at the same deal from the same window.
* Frame control is about getting people to see your highly differentiated service as high value and worth the high price by seeing through the same window.
* Frame control is giving someone a lens to see what you see.
* A buyer's frame is that he usually thinks that his money is the most important in the world and that he is in control.
* Gain frame control through a process called “prizing.”
* The prize to win in the meeting is you because you are the only one who can do what you are selling.
* Communicate that theory clearly by avoiding status-reducing statements and controlling the meeting.
* This method does require you to take a risk.
* No one wants to come to a meeting to talk about themselves; they want to learn things they do not know.



[clickToTweet tweet=”Looking out different windows gives different perspectives, resulting in different emotions.” quote=”Looking out different windows gives different perspectives, resulting in different emotions.”]
How to Be the Alpha

* Should you give a presentation or start by asking questions?

* You should be able to pitch one-on-one with the power of ideas rather than decks.
* Decks are used to get the meeting, but not necessarily at the meeting.
* Getting asked questions can be laborious.
* A cold read lets the buyer know it will not be a boring presentation, but rather you have done your homework, and you are willing to take risks.
* The mind understands when you are taking risks.
]]> Episodes Archives - Art Of Value full false 46:53 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Seek the Desired Outcome First with Lincoln Murphy – 092 https://artofvalue.com/seek-desired-outcome-first/ https://artofvalue.com/seek-desired-outcome-first/#respond Tue, 12 Apr 2016 12:00:03 +0000 http://artofvalue.com/?p=7096 The tagline for the Art of Value Show is discover value, create options and start pricing. Lincoln Murphy calls value the “desired outcome”. In the SaaS world, the desired outcome is not the number of users for your app. The customer does not wake up in the morning and say “How do I get 50 […]

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]]> https://artofvalue.com/seek-desired-outcome-first/feed/ 0 The tagline for the Art of Value Show is discover value, create options and start pricing. Lincoln Murphy calls value the “desired outcome”. In the SaaS world, the desired outcome is not the number of users for your app. Understand the Customer First

* What is the most important thing you can share about pricing?

* Most mistakes are made by not starting with the customer.
* Start by understanding the value the customer will receive.
* 10X Rule – Determine the value the customer will receive and set your price at 10% of that value, as a starting point.
* You have built your product with a specific customer in mind.
* If you cannot answer which customer will get the best value for the product, it is a non-starter.
* Know your customers better than they know themselves.
* People back in Henry Ford's day were looking at the desired outcome of “getting there faster” vs. “having a faster horse.”
* Knowing the desired outcome is transformative.
* Desired outcome is what your customers need to achieve and how they need to achieve it.
* Sometimes your customers cannot volunteer or articulate clearly what the desired outcome is.




* Can you apply “understanding the customer” to existing markets?

* It is applicable to any business.
* Whether it is customer relationship management or a gym membership, the specific customer segment that you target has a desired outcome specific to them.
* If you can unlock it, you can align yourself with that desired outcome.
* By understanding what motivates the customer, a gym can target mature ladies vs. a CrossFit style boot camp.
* The appropriate experience for the customer segment will allow them to meet the requirement of being healthy and feeling better.



[clickToTweet tweet=”Know your customers better than they know themselves.” quote=”Know your customers better than they know themselves.”]
What Is the SaaS Marketplace?

* What are the current trends in the SaaS market?

* The market does not really exist; it is a business architecture.
* Aside from ethics and laws, there are no rules for SaaS.
* Companies like Slack use a land-and-expand model.

* Once you reach a certain number of people, Slack gently pushes its paid services.


* Zenefits is another one of the fastest growing companies ever, giving you a free option.

* Its core revenue comes from insurance.


* Gainsight is an enterprise level company.
* All three are SaaS companies have very different revenue models.
* Zenefits does not have a recurring revenue aspect.
* SaaS is moving away from the per-seat licensing.
* For example, the company might charge based on projects rather than users.
* Base your pricing around how your customers perceive value.




* What are some of the changes in traditional Saas pricing?

* People are realizing that it does not matter how it was traditionally done.
* Resonate with the customer in a way that gets the customer to achieve value while you achieve revenue.
* Basecamp is a good example that companies copy, but they are constantly learning too.
* Pricing is always evolving, from a market standpoint; you need to evolve as well.
]]> Episodes Archives - Art Of Value full false 1:00:37 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Mental Health of the Entrepreneur with Cory Miller – 091 https://artofvalue.com/mental-health-entrepreneur/ https://artofvalue.com/mental-health-entrepreneur/#respond Tue, 05 Apr 2016 12:00:14 +0000 http://artofvalue.com/?p=7084 Mental health is a tabu subject. And that is exactly why Cory Miller is sharing his story. He went through a divorce, and one of the effects was depression. It affected his ability to lead his team and make decisions in his business. Fortunately, he had an attorney who recognized the symptoms and suggested he see […]

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]]> https://artofvalue.com/mental-health-entrepreneur/feed/ 0 Mental health is a tabu subject. And that is exactly why Cory Miller is sharing his story. He went through a divorce, and one of the effects was depression. It affected his ability to lead his team and make decisions in his business. Fortunately, Get to Know Your Customer

* What is the most important thing you can share about pricing?

* Pricing is a part of a larger negotiation between the buyer and seller.
* When you offer significant value, price does not matter; it is just a formality to pay it.
* Price is the start of a negotiation.
* It is bigger than a negotiation over a number.
* It is a negotiation of value between buyer and seller.




* What is the foremost pricing lesson you have learned at iThemes?

* Know your customer to the core.
* Provide exceptional value for the community to make their lives awesome.
* Think of the core thing that you are trying to solve.
* iThemes tries to save money, prevent loss of data and offer peace of mind.
* What are the customers‘ obstacles, and challenges?
* What is the customer's journey?
* What obstacles that arise could our products solve?
* Those answers direct product development, the sales page, and technical support.



[clickToTweet tweet=”When you offer significant value, price does not matter; it is just a formality to pay it.” quote=”When you offer significant value, price does not matter; it is just a formality to pay it.”]
Understand Value Like the Customer

* What is the value conversation for a risk management product like backup or security?

* BackupBuddy was created because a dedicated server crashed, without a backup.

* Cory personally lost photos and blog content that he can never get back.
* There is no number that he could assign to that loss.
* He asks his customers, how much do you value your online work: website, e-commerce data, blog posts, comments?


* iThemes Security was created because one of his websites was getting nailed with spam and bad login attempts.

* Cory did not even understand how bad his site was being attacked.


* These products are like insurance.
* Empathize with the customer's journey.
* It helps if you have your personal stories to relate.




* What is the correct balance between gathering and implementing feedback?

* The vocal minority tells you what is critical and what they want.
* The majority is silent.
* Customer empathy and understanding their journey is the key.
* A translator between the customer and the developer is important to avoid disconnects.
* You do not want the customer to talk directly to the developer becasue they speak different languages.
* The technician and the customer perceive value in different ways.




* What is the advantage of having a “customer advocate” on your team?

* You have to step your game up to know and serve your customers better than the competition.
* You want the customer to feel an empty void if you are to leave.
* He is conducting his own iPhone vs. Android comparison to make sure he understands his customer's perception of value.]]> Episodes Archives - Art Of Value full false 50:25 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Singing the Praises of Value Pricing with BJ Lee – 090 https://artofvalue.com/singing-praises-value-pricing/ https://artofvalue.com/singing-praises-value-pricing/#respond Tue, 29 Mar 2016 12:00:48 +0000 http://artofvalue.com/?p=6974 Making money as a music teacher is tough, especially if you charge by the hour. That is why BJ Lee and his wife Sylvia decided to use a different business model in their vocal coaching practice. They wanted to price their services based on the results their student would achieve rather than the time for the […]

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]]> https://artofvalue.com/singing-praises-value-pricing/feed/ 0 Making money as a music teacher is tough, especially if you charge by the hour. That is why BJ Lee and his wife Sylvia decided to use a different business model in their vocal coaching practice. They wanted to price their services based on the results ... The Start of Value Pricing

* What is the most important thing you can share about pricing?

* If you take a risk by offering multiple packages and prices, you create the chance to be blown away… or a chance to be mocked.
* Creating three packages gives you confidence.
* The middle package is what you know people want from you.
* The lowest package is the basic scope to get the job done.
* The highest package is an opportunity to offer the customer something he does not know is possible.
* To start, BJ and his wife offered something they had never offered before (create a studio recording in 6 weeks).
* The new customer took the highest option, which was 2 times more than what they would have been paid at their hourly rate.




* What was your first exposure to value pricing?

* BJ was interested in offering three options.
* The Basic, Premium and VIP Packages that they originally sold were based on time.
* Since they were selling “future time”, they felt trapped.
* The problem was that it was not results based. If the session was an hour and they reached the goal in 15 minutes, what do you with the rest of the time?
* Other students did not take advantage of all their paid sessions.
* Ron Baker calls fixed pricing based on hours, “hourly billing in drag.”




* What is one of your favorite questions to ask during a value conversation?

* BJ sees the power of questions and how they can guide a conversation.
* They open up the relationship between two people, conveying that you are genuinely interested.
* The customer discovers value through the questions, even if they do not hire them.
* You are human, not a commodity, with this method.
* Look at the value conversation as a way to create value for the customer.
* BJ started to convince his wife by offering options, which forced her to think in terms of what would be valuable to the student.
* It is a growing process, and they still make mistakes, but it is one of the most practical and effective things they have experienced in their business.



[clickToTweet tweet=”The highest option is an opportunity to offer something the customer does not know is possible.” quote=”The highest option is an opportunity to offer something the customer does not know is possible.”]
The Impact of Pricing on Results

* How has value pricing helped your wife improve her craft?

* When a student arrived at the studio, they connected via Skype. Then Sylvia became the remote producer of the track.
* She did not know she could be a producer, let alone virtually.
* Value pricing allowed innovation in the business.
* The student moved to another goal, to sing for her mother, which is priceless.




* What change was necessary to stop selling your time?

* Value pricing made them focus on objectives and results instead of selling time.
]]> Episodes Archives - Art Of Value full false 50:50 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Compensating Your Team Based on Value with Christopher Marston – 089 https://artofvalue.com/compensating-team-based-value/ https://artofvalue.com/compensating-team-based-value/#respond Tue, 22 Mar 2016 12:00:36 +0000 http://artofvalue.com/?p=7080 For over a decade, Chris Marston has been paying his team based on the value they create for the law firm. Each employee can choose how to serve a customer in an engagement from five different roles. The contribution of the role, the lifecycle of the project and the importance of the customer to the firm determine the compensation paid. His "value" model aligns how the company prices customers to how it compensates the team.

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]]> https://artofvalue.com/compensating-team-based-value/feed/ 0 For over a decade, Chris Marston has been paying his team based on the value they create for the law firm. Each employee can choose how to serve a customer in an engagement from five different roles. The contribution of the role, Creating Authentic Relationships

* What is the most important thing you can share about pricing?

* Invest in authentic relationships.
* Being able to price on value starts with caring, a mindset of being fully engaged with whom you are meeting.
* If you walk in with that mindset, you are usually met with that same mindset.
* It is one step beyond being present.
* There are joys you cannot open up until you are fully there and invested in a prospect.




* Why is it challenging for a lawyer to use his judgment to price?

* Jay Shepherd talked about this idea.
* Lawyers think they have the answers to everything.
* There is a trust in one's abilities.
* The billable hour can have people spend decades thinking of value as an internal metric, as the value of their time.
* By mentoring professionals through this change, you learn that you have to take a leap.
* Pessimists seem to perform the best in law, so the ability to identify value is a genuine challenge.



[clickToTweet tweet=”Being able to price on value starts with investing in authentic relationships.” quote=”Being able to price on value starts with investing in authentic relationships.”]
Pricing Models for Lawyers

* What is the pricing model of concentric circles?

* Ron Baker put this model in his book.
* It is a pricing tool that helps professionals understand what the customer wants to buy.
* Value pricing litigation does not mean you are not scoping.
* The Four Circles:

* The inner circle is the “Yes” work, that you will absolutely do.
* There is “Likely” work, which is the next ring out of the circle, which the customer may or may not want to pay for today.
* Outside of that circle is the work that is “Maybe”, which the customer could either include or is not interested in buying.
* “Who the hell knows” (WHK) is the widest circle, which can be included in a price as an insurance policy.


* Calling something a premium is gutsy because you are telling the customer to their face they are paying a premium price.
* This tool becomes part of the relationship process with their customers.
* A customer can buy peace of mind or can budget for the next 3 months.
* You can determine which they want by showing up and giving a hoot.
* Look for social queues and ask questions to understand where the customer fits into the tool.




* What is the pricing model of the airline fuselage?

* The concentric circles tool helps to define the amount of work that needs to be accomplished.
* The airline fuselage is an excellent example of value pricing.
* When you pass the first class cabin on your way to coach, you realize that many people paid up to 20 times more than what you paid for your ticket.
* There is a margin of service improvement with each upgrade in cabin selection.
* It raises the question of, “How do you act and serve better to create more value?”
]]> Episodes Archives - Art Of Value full false 46:02 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Mindset for Creating Value with Dennis McIntee – 088 https://artofvalue.com/mindset-creating-value/ https://artofvalue.com/mindset-creating-value/#comments Tue, 15 Mar 2016 12:00:44 +0000 http://artofvalue.com/?p=6952 The first step to pricing based on value is to believe you create value. Belief starts in your mind. My guest, Dennis McIntee, teaches managers and administrators to create a high-performance culture within their organization. The only way he can challenge his customers to reach higher is if he has a value mindset. Two requirements to achieving […]

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]]> https://artofvalue.com/mindset-creating-value/feed/ 1 The first step to pricing based on value is to believe you create value. Belief starts in your mind. My guest, Dennis McIntee, teaches managers and administrators to create a high-performance culture within their organization. How Does the Customer See Value?

* What is the most important thing you can share about pricing?

* The value of the product or service is determined by the customer, not by you.
* Go through an interview process to see what the customer really wants.
* There is a cost for not getting what you want.
* Look several months out to see what would have to happen to make the engagement great.
* Ask a lot of questions to unearth value, as opposed to coming with a pre-determined notion of the customer's needs.
* In a coaching engagement, start off by asking what would make the day a home run.
* There is a gap between expectations and reality: the bigger the gap, the bigger the frustration.
* If you do not clarify expectations, you will not do a good job of serving your customer.
* You have to peel it like an onion, starting with “What do you want?”
* Keep asking why it is important and what it would accomplish until you get through 5 layers.
* The answer is inside the customer; your job is to help him get clarity on what he wants.
* When the customer has clarity, you can help him form an action plan.
* When the heart decides the destination, the mind begins to draw the map.




* What have you learned about pricing in the last year?

* This year has been an internal battle.
* Believing in yourself and the value you provide is the first step.
* As goes your self-image, so goes your value.
* The fear never goes away; just step into it.
* Ray Edwards told him that you feel the same fear at $5000 or $50,000.
* If the fear goes away, you might be losing some self-awareness.
* Expansion and growth are uncomfortable.
* A relationship and a process are required to live at a higher level.
* Be around people who are a little bigger than you are.
* You are the average of the 5 people you hang out with the most.
* Upgrade your relationships and friendships to be around people who see and dream bigger.



[clickToTweet tweet=”Value of the product/service is determined by the customer, not by you. #pricing #marketing” quote=”The value of the product or service is determined by the customer, not by you.”]
A Mindset of Confidence and Fear

* How do you increase your confidence in the value you create?

* Monitor and train your self-talk.
* As a man thinks in his heart, so is he. – Proverbs 23:7
* Your thinking is how you talk to yourself.
* Live intentionally.
* Practical Exercise: Set alarms throughout the day to check into whether your are dialed into these four states (or the four you choose):

* Contentment
* Confidence
* Connection
* Courageousness






* How do you handle fear when quoting a “new” price?

* Ask yourself what a confident person would do.
* Put on those behaviors.
* In learning to put on the behavior, it changes your mindset.
* Doctors do not justify themselves; why should those in service professions?
* A higher price attracts a higher level person,]]> Episodes Archives - Art Of Value full false 43:38 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Creating Proposals That Win Business with Curtis McHale – 087 https://artofvalue.com/creating-proposals-win-business/ https://artofvalue.com/creating-proposals-win-business/#comments Tue, 08 Mar 2016 13:00:28 +0000 http://artofvalue.com/?p=7107 The traditional view of the proposal is that the professional must wow the customer with his expertise. A contrary view is the proposal is a collaboration between the professional and the customer. A collaboration that explores the value they can create, the value they should create, and the most valuable way to do it. WordPress developer […]

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]]> https://artofvalue.com/creating-proposals-win-business/feed/ 16 The traditional view of the proposal is that the professional must wow the customer with his expertise. A contrary view is the proposal is a collaboration between the professional and the customer. A collaboration that explores the value they can creat... A Proposal Is…

* What is the most important thing you can share about pricing?

* Find the value for the customer and then relate the price to that value.
* Not finding the value is the worst mistake people make with proposals.
* If you do not discover the value and tie it to your price, you will guess whether it is a good price for the customer.
* Software developers tend to jump into the technical requirement too early.
* Going slower allows you to build trust over time so you can learn the real value of the project.
* He does not usually accept “rush” customers.




* What is a proposal?

* As Alan Weiss defines it, a proposal is a summary of the agreements that you have already made in your conversations.
* As you talk to prospects, you can get to the real value by asking a series of why questions.
* Ask why five times.
* The customer is not an expert in your profession.
* Slowing down helps to establish you as an expert.
* As Tim Williams said, it is part logic and part magic. The customer will pay for the magic.



[clickToTweet tweet=”Not finding the value is the worst mistake with a proposal. #pricing #software #sales” quote=”Not finding the value is the worst mistake with a proposal.”]
Components of a Proposal

* What should you exclude from a proposal?

* A proposal is not a summary of every task you are going to do in a project.
* You do not want to appear tactical, rather than strategic.
* It is not to establish credibility or to win work over someone else.
* For the scope, Curtis and the customer write a Google Doc without prices or timing.
* The objectives are different from the scope/task list; objectives define the project's success.
* By making it a collaborative effort with the customer, it creates an opportunity to identify problems and create more value, and thus improve your bottom line.
* Not taking the time to build the relationship will create a desire to put your company's history in the proposal, which is a mistake.




* What are the 6 key elements of a proposal?

* Define the current problem.
* List the objectives– high level focusing on the desired outcome.
* Gauging success statement.
* Three options, with option 1 fulfilling all the requirements of the project.
* Timeline, based on the options.
* Accountabilities for the customer and the provider.




* Defining the elements:

* Objectives are about the bright future, e.g., “to get more sales by driving more traffic” – like a sales letter to a specific customer.
* Gauging success through metrics demonstrates that you are not just dreaming.
* You can usually pull that information from your notes.
* Gauging success needs to be something you can control; e.g.,]]> Episodes Archives - Art Of Value full false 49:33 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Learn to Value Price Through a Process with Andrew Robertson – 085 https://artofvalue.com/learn-value-price-process/ https://artofvalue.com/learn-value-price-process/#respond Tue, 23 Feb 2016 13:00:10 +0000 http://artofvalue.com/?p=6950 The accounting profession is conservative by nature. Yet Peter Drucker said, "Profit comes from risk". This juxtaposition of stability vs. stretching describes the challenge of the accountant to innovate in his practice. Andrew Robertson has created a consultancy for accountants to help them bridge the gap. He starts by creating standard offerings for common services like taxes and financial statements. Then he layers custom advisory services, unique for each customer, to move the relationship up the value curve.

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]]> https://artofvalue.com/learn-value-price-process/feed/ 0 The accounting profession is conservative by nature. Yet Peter Drucker said, "Profit comes from risk". This juxtaposition of stability vs. stretching describes the challenge of the accountant to innovate in his practice. Your Standard Offer and Value Pricing

* What is the most important thing you can share about pricing?

* Pricing can be scary for accountants.
* However, processes and systems can create a repeatable result.
* Define a standard way to a price for your core offering.
* Price other services based on the value to the customer.
* The advisory services are often already part of your core offerings.
* Compliance is not just financial statements and tax returns, but can include daily interaction with your customers.
* You can value price the core offering also, but that is more about prestige.
* The majority of accountants make money by volume rather than creating more value for existing customers.




* What is the biggest challenge to switch to value pricing?

* Mindset is the biggest challenge.
* It is scary to move away from the traditional way of doing things.
* Firms are currently making a decent profit.
* It is a leap of faith.
* By creating a structure for value pricing, it makes it an easier transition.
* It helps accountants move past the conventional mindset.
* Billing on time is a safety net.



[clickToTweet tweet=”Most accountants make money by volume rather than creating more value for existing customers.” quote=”Most accountants make money by volume rather than creating more value for existing customers.”]
Core Work vs. Advisory Work

* Have accounting firms started to value price the “core” work?

* Once they are comfortable with pricing the advisory work, firms then start to value price the core also.
* Once an accounting firm defines its core offering, it and take a fresh look at who their customer is.
* The customer who just wants compliance work will no longer be a customer.
* The firm removes the core work (compliance only) and focuses more on value-add services.
* At this point, they naturally become true value pricing firms.
* The stages of transitioning help firms who want to move toward to value pricing without an 180-degree commitment.
* Following the process, you can reduce the transition time by half.




* What types of services are core and advisory?

* A regionally focused, traditional firm, whose average fee is very low, looked at their core offerings.
* They created three offers:

* The base offer is a compliance only offer.
* The next step up is compliance plus – more offerings, but no business advisory.
* The top package is the business advisory, where the firm will do whatever is needed when the customer calls.


* When they provided three options, they increased the number who were willing to pay for the business advisory.
* They got more requests for cash flows and budgets to refinance, so they created a bank monitoring service, providing monitoring on a quarterly basis.
* The firm saw a 50% increase from the monitoring service.
* The average price per customer rose 25 % after the first year.
* Another boutique firm,]]> Episodes Archives - Art Of Value full false 46:30 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing How to Create Value Through Positioning with Philip Morgan – 084 https://artofvalue.com/create-value-positioning/ https://artofvalue.com/create-value-positioning/#respond Tue, 16 Feb 2016 13:00:36 +0000 http://artofvalue.com/?p=6948 Philip Morgan helps custom software shops get more leads without hiring a salesperson. He does this by helping refine their positioning and create effective content marketing systems. He is the author of two books, The Positioning Manual for Technical Firms, and The Positioning Strategy Guide. Philip describes himself as an introvert who specializes in marketing for introverts. […]

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]]> https://artofvalue.com/create-value-positioning/feed/ 0 Philip Morgan helps custom software shops get more leads without hiring a salesperson. He does this by helping refine their positioning and create effective content marketing systems. He is the author of two books, The Positioning Manual for Technical Firms, and The Positioning Strategy Guide. Philip describes himself as an introvert who specializes in marketing for introverts.
Narrowing Your Focus

* What is the most important thing you can share about pricing?

* The foundation of your ability to increase your prices is your ability to deliver more value to your customers.
* The key to delivering more value is your willingness to restrict or narrow who you serve and what you do for them.
* Narrowing is difficult because it triggers a survival instinct.
* People who are self-employed often did not study business or marketing but are figuring things out as they go.
* They believe they have to be flexible and adaptable to serve multiple markets.
* By narrowing his focus from a generic writer, demand for his services went up and so did his rates.




* What was the inspiration to specialize in positioning?

* Al Ries and Jack Trout wrote Positioning: The Battle for Your Mind and a series of articles in Advertising Age, speaking to Fortune 500 companies.
* “You need to own a word in the mind” is a poetic definition of what it means to market yourself.
* Choose an attribute that potential customers care about (safety) and be the company that provides it (Volvo).




* What is the difference in the mindset of a creative vs. a coder?

* E-myth discusses the differences between the manager, the entrepreneur, and the technician.
* Coders are very creative people, with coders applying their creativity differently in the reality of developing code.
* The idea of voluntarily agreeing to do something boring is terrifying to a creative person.
* Most software developers have above average intelligence and some things come very easily for them (such as the public school system).
* They will hit a ceiling on their business growth, due to underdeveloped marketing skills.
* The technician hits a rate ceiling, because they start to get pushback from their customers since they have focused on their craft, but not their business or marketing.




* How important is technology for a technical consultant?

* Technology is only about 20-30% of the value proposition for technicians.
* Understanding how to solve an expensive problem is the most important thing.
* Imagine you are responsible for P&L at your customer's company, you will have a very different way of looking at the world.
* You will realize that the things important to you (technology) do not matter in the world view of a P&L person.
* Fear is related to having to talk about yourself differently for marketing and sales.



[clickToTweet tweet=”Your ability to increase your prices is your ability to deliver more value to your customers.]]> Episodes Archives - Art Of Value full false 1:01:25 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Going Timeless in the Legal Profession with Beth MacLean – 083 https://artofvalue.com/going-timeless-legal-profession/ https://artofvalue.com/going-timeless-legal-profession/#respond Wed, 10 Feb 2016 13:00:42 +0000 http://artofvalue.com/?p=6946 Beth MacLean founded Timeless Legal Network to help lawyers increase their revenue. A former corporate and private practice attorney, she has created two products for this purpose. Timeless Roadmap helps identify new opportunities with small business customers. Timeless Advantage teaches attorneys how to price based on the value to the customer instead of the hours recorded.

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]]> https://artofvalue.com/going-timeless-legal-profession/feed/ 0 Beth MacLean founded Timeless Legal Network to help lawyers increase their revenue. A former corporate and private practice attorney, she has created two products for this purpose. Timeless Roadmap helps identify new opportunities with small business c... The Story Behind Timeless

* What is the most important thing you can share about pricing?

* It does not have to be that hard.
* You need to be fully committed to the value pricing journey.
* Matthew Burgess was a trailblazer, talking about the journey.
* Because of the plethora of information, tools and support out there now, it is not that hard.




* What is the Timeless Legal Network?

* Timeless is a network of incredibly innovative small to medium-size law firms.
* It is about helping lawyers and their customers become more successful, by providing them with the tools and support they need for timeless pricing.




* What is the story behind Timeless Legal Network?

* Chapter 1 – After law school, she took a job at a large firm.
* Her customers were banks and corporations, represented on the other side by big law firms.
* Her instruction was to craft a contract with an upfront payment and a series of payments to follow. The catch was to avoid the additional payments through qualifications.
* She got a call from someone who was not a lawyer.
* She told the gentleman that he needed a lawyer to review the document before the deadline at midnight.
* Her heart sunk because she knew the impact the deal would have on his business.
* When the deal closed, she quit her job, telling her superiors that she wanted to help the little guy avoid “them.”


* Chapter 2 – She started her law firm to try to help customers become more successful and avoid the pitfalls.
* The firm did not work out due to her naive perspective.
* She created Roadmap based on a legal and financial due diligence checklist for the sale of a company.
* Roadmap helps customers address the items in those checklists to better understand how to avoid the pitfalls.
* After she created Roadmap, customers would ask, “Can you do this on a retainer?”
* She would then create a fixed fee, based on a number of hours – the billable hour in drag.
* She continued to see businesses fail to be proactive about their legal issues, so she stopped practicing law.


* Chapter 3 – She met Paul Dunn, who suggested she read Firm of the Future.
* The light bulbs were going off as to why her mission did not work.
* She set up a network of lawyers who could share their experiences and return to the principles that inspired them to become lawyers.
* The idea of “making a difference” is the theme; she was a solution looking for a framework.
* Michael Bungay Stanier, the founder of Box of Crayons, told her, “Wisdom enters through the wound.”



[clickToTweet tweet=”Because of the plethora of information and tools available, pricing is not that hard.” quote=”Because of the plethora of information and tools available, pricing is not that hard.”]
]]> Episodes Archives - Art Of Value full false 54:35 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Picking Your Value Lane with Jeffrey Shaw – 082 https://artofvalue.com/picking-value-lane/ https://artofvalue.com/picking-value-lane/#respond Thu, 04 Feb 2016 13:00:21 +0000 http://artofvalue.com/?p=6944 Jeffrey Shaw is the go-to portrait photographer for exclusive clientele. His portraits have been featured on The Oprah Winfrey Show, in O Magazine and People, and on CBS News. He is a business coach who serves massively talented creatives who struggle with the business side. He lives on an island just off Manhattan, New York, and gets […]

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]]> https://artofvalue.com/picking-value-lane/feed/ 0 Jeffrey Shaw is the go-to portrait photographer for exclusive clientele. His portraits have been featured on The Oprah Winfrey Show, in O Magazine and People, and on CBS News. He is a business coach who serves massively talented creatives who struggle ... The Oprah Winfrey Show, in O Magazine and People, and on CBS News. He is a business coach who serves massively talented creatives who struggle with the business side. He lives on an island just off Manhattan, New York, and gets to work by cable car.
Determining Your Lane

* What is the most important thing you can share about pricing?

* Pick a lane.
* Be aligned through your whole process – pricing, brand image, brand value.
* Strategically building a business is based on determining who you are serving first, and then focusing on serving them.
* Most people go in business backwards.
* Misalignment with regard to pricing is common.
* By looking at a brick and mortar business, you can determine whether or not you want to go inside just by looking at it.




* Why are you a photographer?

* Jeffrey went into business as a photographer when he was 20.
* He was not conscious of the business he was building then but seemed to have good business instincts.
* He does not look at what others are doing in his industry because he wants to zag when everyone else is zigging.
* He is out to take photos of “third children” since he does not have any pictures of himself growing up as a third child.

* Once he became conscious of his passion, it was easy to align.


* His 20-year old daughter had to put down her 8-year old horse.

* The man who put down the horse explained that he got into the business because his experience having a horse put down was handled poorly.
* His why made it an honor for Jeffrey's family to pay him.


* There is a true value in explaining your why.




* Why do you offer a performance guarantee?

* If you offer a money back guarantee, you are supporting someone's failure. Jeffrey wants to support someone's success.
* His “I will not let you fail” guarantee promises that if you are not happy, he will work even harder to make it satisfactory.
* The responsibility of success comes back to the entrepreneur.
* If you can look inward at your accountability and determine how you could do it differently, you gain the most control over your business and life.
* Jeffrey will fight harder to make the transformation that his customer is looking for; he will show up deeper.
* He has never returned a dollar in any of his businesses because he always approaches it with a commitment to success.



[clickToTweet tweet=”Building a business is determining who you are serving, and focusing on serving them.” quote=”Building a business is determining who you are serving, and focusing on serving them.”]
Pricing for Your Lane

* How do you price your services to create margin?

* The best thing you can do for your customers is to charge the maximum amount of money and get paid upfront.
* When you know you have margin, you can go the extra mile and the value created for the customer is tremendous.
* If you are paid before the service, you have an energetic level of freedom that empowers a healthier working relationship.
* When you get the money conversation out of the way, it frees you up to do your best work for the customer.
* The experience is different when you are pushed into making a sale.




* What is the typical way to price photography?

* The healthiest way of doing business is when there is a broad price ra...]]> Episodes Archives - Art Of Value full false 1:04:15 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Value of Telling A Story with Michael Hudson – 081 https://artofvalue.com/value-telling-story/ https://artofvalue.com/value-telling-story/#respond Tue, 26 Jan 2016 13:00:10 +0000 http://artofvalue.com/?p=6573 Michael Hudson is an idea junkie–he is educated far beyond his intelligence. He is a recovering college professor, which means he is a teacher at heart. He has consulted with over 3,000 businesses on strategy, culture and leadership, and has given over 8,000 public presentations, including keynotes. Shifting from Time to Value What is the […]

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]]> https://artofvalue.com/value-telling-story/feed/ 0 Michael Hudson is an idea junkie–he is educated far beyond his intelligence. He is a recovering college professor, which means he is a teacher at heart. He has consulted with over 3,000 businesses on strategy, culture and leadership, Shifting from Time to Value

* What is the most important thing you can share about pricing?

* It starts in your brain.
* Most people assume that whenever you quote a price the customer will want a lower price.
* Get in your head the value you bring and the price it is worth, and then you do not have to explain it.
* Initially, he wondered how he could get people to pay him and spent a lot of time figuring out the justification for his price.
* He changed his perspective to focus on value, rather than cost.
* Use “investment” rather than “cost” when you discuss price with your customer.
* Before his perspective change, he underpriced his services.
* Think about the things that create additional value in the engagement to help develop the price.




* What was your first exposure to value pricing?

* A customer discussed a major project to build his culture and improve his leadership.
* He wanted to know how he was going to get value if he invested in Michael's services.
* Michael laid out the cost of the customer's current mistakes and helped him discover a 10X return on the investment.
* No one had ever asked what the ROI would be on the investment.
* If you are a technician who loves what you are doing, you can easily fall into the trap of undervaluing your services. (, by Michael Gerber.)
* When you begin to focus on the objectives that you are trying to achieve, you begin to figure out how to save the customer money.
* If you do not show your customer additional things beyond the price, you are doing the customer a disservice.
* Get yourself out of trading time for dollars.
* Once you stop thinking about dollars and start thinking about the impact, you realize you can create a lot of value in small periods of time.
* Shift your perspective to what your contribution is to the company rather than how many days you are there.
* A little nugget of information can produce most of the value from an engagement.
* “I do not get paid for what I do; I get paid for what I know.”
* “I get paid to show you how to implement what I know” is what truly creates an impact.
* Recognize that your contribution that far exceeds the time involved.
* If you have confidence in your ideas and mastery of your trade, you can create extraordinary value.
* The best ideas will never go far if you cannot communicate them.



[clickToTweet tweet=”‘I get paid to show you how to implement what I know' is what truly creates an impact.” quote=”‘I get paid to show you how to implement what I know' is what truly creates an impact.”]
Storytelling Matters

* What is your background as a public speaker?

* It started with him being the scared kid, where he heard, “sit still and shut up” from his teachers.
* He withdrew and became petrified to speak in front of others.
* It changed when he watched a speaker in 2nd-3rd grade who told stories as he sat and listened, engrossed.
* He learned that “storytelling mattered.”
* His speaking philosophy is “tell them a story and then teach them a lesson.”




* How do you create value for the audience, the host and yourself?

* You have to believe that you can deliver in a way they have not heard or have not seen how they can apply it before.
* Have the guts to focus,]]> Episodes Archives - Art Of Value full false 48:52 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing A Masterclass in Creating Options with Keith Perhac – 080 https://artofvalue.com/masterclass-creating-options/ https://artofvalue.com/masterclass-creating-options/#comments Wed, 20 Jan 2016 13:00:42 +0000 http://artofvalue.com/?p=6571 Keith Perhac is a technical marketer, a combination of a software developer and a conversion optimization specialist. He works with SaaS companies and internet marketers to develop automated evergreen sales funnels. He helps convert the traffic that comes to your website into sales. Keith has built two companies around this specialty: SegMetrics.io, which is the […]

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]]> https://artofvalue.com/masterclass-creating-options/feed/ 4 Keith Perhac is a technical marketer, a combination of a software developer and a conversion optimization specialist. He works with SaaS companies and internet marketers to develop automated evergreen sales funnels. SegMetrics.io, which is the reporting that should come with Infusionsoft, and SummitEvergreen.com, which helps marketers create online courses.
Start by Focusing on Value

* What is the most important thing you can share about pricing?

* Recognize the value of what you are selling through the eyes of the customer, not your own.
* As you become better at your skill set, the value of that skill seems to diminish.
* There is an intrinsic value over and above the hard work that goes into it.
* See the potential value that your customer sees in it.
* It is easier to do this in industries where you are providing direct value.
* You have to determine what the ROI is for your customer and how you can deliver it consistently.
* Determining financial value is very straightforward.
* There is also non-tangible value, such as creating an internal business process, that allows the customer not to waste time.
* Raising your price is all about how you position what you are selling.
* If you do not value what you do, then you cannot see the value through the customer's eyes.
* The more you charge, the more valuable your customers think you are.




* Why is it hard to focus on value instead of the craft?

* You are predisposed to value something for which you pay money.
* The trappings around IBM are what make it valuable, not the software itself.
* You have to determine whether or not what you are providing to the customer is the right solution.
* Everyone tends to value their craft over others.
* Talking with customers is the best way to avoid the knee-jerk reaction that your offering is the right solution.



[clickToTweet tweet=”If you do not value what you do, then you cannot see it through the customer's eyes.” quote=”If you do not value what you do, then you cannot see it through the customer's eyes.”]
Then Create Options and Bundles

* What is your experience with offering tiers (options) when pricing?

* The two main strategies when pricing a product are:

* Tiered pricing
* Price anchoring


* Tiered pricing is when you have the same product at a basic level, silver level, and gold level; each level adds more value at a higher price.
* It gives everyone who is willing to pay an option.
* Having a range, lets you offer a product for each person who is a potential customer. (Nathan Barry‘s books)
* Three is the magic number for options.
* When you have one product, the option is buying or not buying.
* When you have three products, there is a 75% chance of yes and only 25% chance of no.
* Adobe is a great example of people who would go to extremes to hack a product because it was so expensive.
* Adobe made people choose between “I am a professional and want to do things now” vs. “I have a hobby and do not have any money to spend”.
*  Three targets to hit:

* Have more time than money
* Have more money than time
* Time/money are almost equal


]]> Episodes Archives - Art Of Value full false 1:03:21 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Value of Social Media with Mojca Marš – 079 https://artofvalue.com/value-social-media/ https://artofvalue.com/value-social-media/#respond Tue, 12 Jan 2016 13:00:01 +0000 http://artofvalue.com/?p=6569 Mojca Marš is a social media consultant who founded her own consultancy, Super Spicy Media. She resides in Slovenia and works with customers worldwide. She started out as a copywriter at an advertising agency and is proud to say she wears a dinosaur one-sie. Raising Your Rates What is the most important thing you can […]

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]]> https://artofvalue.com/value-social-media/feed/ 0 Mojca Marš is a social media consultant who founded her own consultancy, Super Spicy Media. She resides in Slovenia and works with customers worldwide. She started out as a copywriter at an advertising agency and is proud to say she wears a dinosaur on... Super Spicy Media. She resides in Slovenia and works with customers worldwide. She started out as a copywriter at an advertising agency and is proud to say she wears a dinosaur one-sie.
Raising Your Rates

* What is the most important thing you can share about pricing?

* Raising your rates is something you can do on a regular basis.
* She initially charged a fixed price, but it was a low one.
* When she became faster at getting better results, she gradually began to raise her prices.
* As she is building her own brand, there are people who only want to work with her and she can charge higher prices because of it.
* She was busy enough to offer to schedule with prospects 3 months later or refer them; they chose to wait and pay a higher price.
* She built her personal brand through Twitter with the dinosaur onesie pictures and her unique view of life.




* What was the business model you implemented to double your income?

* It was a very basic model, as she was not familiar with business plans.
* She charged low prices to get customers, but she raised them over time.
* Once she started creating more value for her customers, she raised the prices and her customers had no problem with it.
* She raised her price 200% for a new customer and got it.
* She has consistently raised her rates.
* She read Brennan Dunn‘s book, Double Your Freelancing Rates, to learn about value pricing.
* She sought out – intentionally – different people with the same mindset.
* Jonathan Stark, Kai Davis, and Philip Morgan all connected with her on Twitter and that is where she learned more.
* You will stumble upon people who tell you to charge by the hour, but she gets higher value from those who are not.
* Before she got fired from her advertising agency, she got paid by the hour and thought it was stupid.




* Why do you publish your consulting prices on your website?

* She wanted to cherry pick the people who want to work with her.
* Publishing the rates helps her weed out the companies that cannot afford her or had low budgets.
* She productized Super Spicy Sessions at a lower rate.
* When prospects contact her now, they know what to expect price-wise.
* Currently, she does not go above the posted range, but she tailors the packages and prices per customer's needs.
* She has one customer who has been with her over a year, but usually she works with a customer for 1-3 months and then provides a detailed strategy for them to continue on their own.
* Providing the price for the lowest level of engagement allows her to charge higher prices.
* If the customer wants to do a “test drive”, they are able to hire her for a Super Spicy Session to see how she works; she does not do it for free.
* The initial customers she was working with at very low prices were the worst.
* The customers who pay her higher rates now recognize the value and are better customers.
* You can make more money with less work by focusing on value, creating a win-win situation and making work fun.



Social Media Conversations

* What are the steps in your sales process?

* The prospect contacts her via Twitter or through email.
* Initially, they would email back and forth and then write a proposal,]]> Episodes Archives - Art Of Value full false 48:28 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Most Important Thing About Pricing Vol. 2 – 078 https://artofvalue.com/important-thing-pricing-vol-2/ https://artofvalue.com/important-thing-pricing-vol-2/#respond Tue, 05 Jan 2016 13:00:05 +0000 http://artofvalue.com/?p=6701 Happy New Year! At start of each show I ask my expert guest the same question: What is the most important thing you can share about pricing? After 50 interviews in 2015, I have compiled their answers into Volume 2 of “The Most Important Thing About Pricing”. It's About the Customer Ray Edwards – Set your price based on the value […]

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]]> https://artofvalue.com/important-thing-pricing-vol-2/feed/ 0 Happy New Year! At start of each show I ask my expert guest the same question: What is the most important thing you can share about pricing? After 50 interviews in 2015, I have compiled their answers into Volume 2 of “The Most Important Thing About Pri... It's About the Customer

* Ray Edwards – Set your price based on the value that your bring to your customer.
* Brennan Dunn – It is not about you, it is about the customer.
* Brian Casel – Keep the customer’s view of the value in mind.
* Lee Cockerell – Price is all about value.
* Ben Furfie – The goal of value pricing is to match the price with the customer’s perception of value.
* Kai Davis – If value is greater than price, it will be a no-brainer for the customer.
* Joni Newkirk – Lead with the customer; where does she perceive the value.
* Michael Port – People buy to express their values.

Learning to Price

* Josh Zweig – Pricing is a skill that is dynamic.
* Matthew Burgess – Value pricing is a journey.
* John Chisholm – Pricing is not perfect; it is an art.
* Mark Stiving – Understand the decision your customer is making right before they buy: Which one? or Will I?
* Kevin Mitchell – The best leveler to increase your profit is strong pricing knowledge and acumen.
* Mark Wickersham – Pricing has absolutely nothing to do with costs.
* Rags Srinivasan – There are no pricing problems; only segmentation problems.
* Jason Coleman – There is no magic formula to price something.

Your View of Creating Value

* Bob Burg – Unless your name is Walmart, do not make low price your value proposition.
* Ed Gandia – Whatever idea you have about what something is worth, you are probably wrong.
* Jonathan Stark – Just do it. If you bill by the hour, you are not pricing.
* Jody Maberry – You are worth more than you think you are.
* Kary Oberbrunner – Pricing is a reflection of self-image.
* Mike Kim – You can probably charge higher than you think you are worth.
* Chris Cerrone & Laci Urcioli – Know your value and the value you bring to your customer.
]]> Episodes Archives - Art Of Value full false 44:48 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Creating Value Through Public Relations with Josh Elledge – 077 https://artofvalue.com/creating-value-public-relations/ https://artofvalue.com/creating-value-public-relations/#respond Tue, 29 Dec 2015 13:00:07 +0000 http://artofvalue.com/?p=6567 Josh Elledge is the Founder and Chief Executive Angel at SavingsAngel.com, whose mission is to help families save money and build wealth. He has appeared on radio and TV over 1000 times and has a syndicated news column with 1.5 million readers. As a result of his media experience, he created UpendPR.com where he shares how […]

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]]> https://artofvalue.com/creating-value-public-relations/feed/ 0 Josh Elledge is the Founder and Chief Executive Angel at SavingsAngel.com, whose mission is to help families save money and build wealth. He has appeared on radio and TV over 1000 times and has a syndicated news column with 1.5 million readers. SavingsAngel.com, whose mission is to help families save money and build wealth. He has appeared on radio and TV over 1000 times and has a syndicated news column with 1.5 million readers. As a result of his media experience, he created UpendPR.com where he shares how to use PR to your advantage.
The references in Kirk's intro are:

* Tim Williams: Price Better by 1% and Earn 10% More Profit
* The 1% Windfall by Rafi Mohammed

Pricing Opportunity in Your Industry

* What is the most important thing you can share about pricing?

* Just because there is an industry standard in pricing does not mean all customers accept it.
* In the PR industry, small business owners and entrepreneurs are rejecting the standard, saying that it does not work for them.
* That is an indication that there is an opportunity for a new pricing model.
* If your audience is asking for something different, are you willing to look at your products and services to better fit the market?
* At least 2-3 times per day, he hears a PR practitioner complaining about customers asking for guarantees and pushing back on pricing.
* If you hear objections consistently, that is an opportunity.
* If you can create something different that the audience is looking for, you put yourself in the drivers seat.




* What is public relations?

* PR is story telling.
* The advantage of traditional PR is that you are telling the story to large audiences in the media.
* There are still lots of very big audiences in traditional media.
* You can be a giver through PR rather than an advertiser.
* You can focus on serving the audience, who will love you for it.
* Large media includes podcasts, blogs, and social media personalities, not just TV and radio.
* Getting on a popular television show can go two ways:

* Hire a PR firm who will prep you and introduce you for a substantial price.
* Earn your way as a small business by getting in front of smaller audiences first and build your credibility.


* One bad guest can lose 10-30 viewers on a show; the producer cannot risk that outcome.
* If you earn your way onto the popular shows, you will get good at doing it, rather than surviving a crash course.
* Become a subject matter expert and avoid just pitching your product.




* What is the ROI from public relations?

* If you have a vested interest in the profits of your company, you are probably following a Michael Gerber philosophy to grow the business: do not work in the business, work on the business.
* To grow the company, you need to:

* Network with lots of influential people
* Tell your story to large audiences


*  Getting a 3rd party validation is more powerful than blasting out an ad.



Know, Like Then Trust

* What is the difference between PR and marketing?

* Marketing and advertising, specifically, give you very high control but very low trust in the minds of the audience.
* PR, publicity, and media placement give you lower control over what you like to say, but you can focus on giving huge value to audiences to gain high trust from them.
* Give away your best stuff.
]]> Episodes Archives - Art Of Value full false 45:31 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Software Development Is A Profession with Tom McFarlin – 076 https://artofvalue.com/software-development-profession/ https://artofvalue.com/software-development-profession/#respond Tue, 22 Dec 2015 13:00:11 +0000 http://artofvalue.com/?p=6224 Tom McFarlin is the founder of Pressware, which develops web apps with WordPress. He is also an open source software developer and an editor for Touch Code, an online technology magazine. Tom has been appointed a Microsoft Most Valued Professional 4 years in a row. He has a computer science degree from Georgia Tech. Solving Customer Problems What is […]

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]]> https://artofvalue.com/software-development-profession/feed/ 0 Tom McFarlin is the founder of Pressware, which develops web apps with WordPress. He is also an open source software developer and an editor for Touch Code, an online technology magazine. Tom has been appointed a Microsoft Most Valued Professional 4 ye... Pressware, which develops web apps with WordPress. He is also an open source software developer and an editor for Touch Code, an online technology magazine. Tom has been appointed a Microsoft Most Valued Professional 4 years in a row. He has a computer science degree from Georgia Tech.
Solving Customer Problems

* What is the most important thing you can share about pricing?

* Start by looking at what you need to live, thinking forward into retirement.
* Over time, you want to scale upward, just like you would in a traditional career path.
* When you are self-employed, you do not have an annual review.
* You want your pricing to be commensurate with your skill set and experience.
* Base your pricing on:

* Planning for the future while you are growing
* The skill set you have developed
* The experience you bring to your customer


* By communicating value (high or low), your price attracts a certain type of customer. Do you want this type of customer?
* You want the customer to see you as an investment rather than a cost.




* How does a software developer create value for a customer?

* Developers solve problems.
* If you are just building things to scratch an itch, you are are a hobbyist.
* Nobody wakes up and says: I want to pay someone to develop software today.
* Developers need to work on solutions that matter because 50% of projects fail and 67% are over time and budget.
* Several factors contribute to the failure rate.
* The government said, “We will take care of healthcare.” Then the website did not work, perpetuating the industry stereotype.




* What is can a developer do to create more value for a customer?

* Create tighter/smaller feedback loops to deliver projects on time.
* Do not assume you understand the requirements for a project when you see them in writing.
* The customer terminology might be very different from what you assume.
* You need to work with the customer to see it from their perspective.
* You should work iteratively on a feature/requirement, asking the customer to verify it works as expected.
* If you wait until the end of the project, you will have a large number of things to refine.
* Make sure you are building what the customer wants in a timely fashion.
* You have to develop the solution with the user's eyes, not the developer's eyes.
* It is the developer's responsibility to say when you should not do what the customer wants.



Standards Create More Value

* What is the value of coding standards for the developer and the customer?

* Your source code is written in a predictable fashion.
* It will look like a single developer wrote the code, regardless of the programmer.
* There is less of a learning curve for the developer because it sets an expectation.
* For the customer, coding standards save time and money.
* When bringing in a new developer, he will be able to pick up the code more quickly.
* Feature requests and bugs can be more quickly addressed, eliminating maintenance costs.
* Ed Kless teaches the IT Smile Curve, where the ends of the curve (the problem to solve and ongoing support) are the most valuable.
* http://artofvalue.com/?p=6222 Jason Coleman is the founder of Stranger Studios and the creator of Paid Memberships Pro, a membership plugin for WordPress. He is the co-author of Building Web Apps with WordPress. Jason enjoys playing Minecraft and Super Mario Maker with his kids. Kary Oberunner‘s podcast with Kirk is here: How to tell your friends their Digital Fly© is down […]

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]]> https://artofvalue.com/creating-pricing-wordpress-plugin/feed/ 0 Jason Coleman is the founder of Stranger Studios and the creator of Paid Memberships Pro, a membership plugin for WordPress. He is the co-author of Building Web Apps with WordPress. Jason enjoys playing Minecraft and Super Mario Maker with his kids. Stranger Studios and the creator of Paid Memberships Pro, a membership plugin for WordPress. He is the co-author of Building Web Apps with WordPress. Jason enjoys playing Minecraft and Super Mario Maker with his kids.
Kary Oberunner‘s podcast with Kirk is here: How to tell your friends their Digital Fly© is down (Episode 51)
Transitioning from Services to Products

* What is the most important thing you can share about pricing?

* There is not one magic formula to price something.
* Find as many methods of pricing as you can and use all of them.
* Take what you learn to come up with a price.
* If you are using different methods, you will notice that certain prices become a sweet spot.
* You will learn about your market, your customer and the prices that do not work by using the various methods.
* Do not get discouraged by competitors' prices, but rather learn how to educate your customers on the value to justify your price.




* How did you get started developing websites for WordPress?

* He has been making websites in high school.
* After college, he worked at Accenture and then left to do freelance development with his wife.
* They started making blog sites with WordPress.
* In 2010, they started using WordPress for site development, pushing it to its limits.
* They used a custom plugin they built for 5-7 e-commerce customers in 2011.
*  They had a couple of customers who needed membership functionality, and they built Paid Memberships Pro as open-source from the ground up.




* How did you make the switch from consulting to selling a product?

* After creating the product, they started attracting membership-based consulting customers and established a niche.
* Over time, they went from WordPress developers to membership site developers.
* The switch helped their consulting business by attracting leads through the plugin.
* They were able to charge a higher premium based on their expertise in the membership niche.




* Is “repeatable” work more valuable than custom work?

* Focus on a niche and try to do a repeatable engagement.
* If you are doing the same kind of work, you get faster at it.
* If you charge a fixed price, your effective rate goes up.
* Your customers become more confident in signing up with you.
* Products can include a consultation call.
* During that consultation, you can qualify customers for future work.
* He thinks of it as simplifying his business to allow him to do more of what he wants to do.



Selling Service As a Product

* What are the advantages of selling service as a product?

* “Do It For Me” was a product that included them installing the plugin for customers.
* It was priced almost at a loss so they could become educated on use-cases from customers.
* If you upsell consultant work to those customers, you guarantee that it is someone who can pay you.
]]> Episodes Archives - Art Of Value full false 46:27 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Selling Value to Corporate Purchasing with Jennifer Kinson – 074 https://artofvalue.com/selling-value-corporate-purchasing/ https://artofvalue.com/selling-value-corporate-purchasing/#respond Tue, 08 Dec 2015 13:00:13 +0000 http://artofvalue.com/?p=6234 Jennifer Kinson sells professional services to Fortune 100 customers in information technology. She typically manages 6- to 7-figure deals. Because of the size of the engagements, Jennifer has to put together ROI statements for her customers. She does not have a traditional sales background, and that works to her advantage. Her husband, James Kinson, is […]

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]]> https://artofvalue.com/selling-value-corporate-purchasing/feed/ 0 Jennifer Kinson sells professional services to Fortune 100 customers in information technology. She typically manages 6- to 7-figure deals. Because of the size of the engagements, Jennifer has to put together ROI statements for her customers. The Cash Car Convert.
Talking About Price Is NOT Slimey

* What is the most important thing you can share about pricing?

* Talking about pricing does not have to be uncomfortable.
* It is about establishing the value of your product or service.
* If you are not having that value conversation, you are not very credible.
* Talking pricing is not unethical or slimy.
* During her first 10 years of selling, she went through the entire sales process, disclosed the price at the end and then took the objections. It was not a comfortable situation.
* Customers are looking at products and services because they already see value in them; these are not cold calls.
* Sales is about customer service and solving problems.
* The pricing discussion is about understanding how much value they see and what it is going to mean to them.




* Why is a professional more valuable to an existing customer?

* You are more valuable to your customer the longer you have been in a relationship with them.
* A transactional customer relationship, where you engage and disengage, loses momentum.
* Having a partnership with your customer gives you confidence that there is value in the relationship. The conversation is not about price.
* Fortune 100 customers have purchasing departments that do not care about the value.
* They are a disconnected organization, which takes each engagement down to the lowest common denominator.
* When you can deliver value that no one else can because of your long-term relationship, your price can be higher.



The Mindset of Corporate Purchasing

* How can you counter the typical mindset of corporate purchasing?

* There is an organizational discord between the customer-facing people and the people in the back.
* As a seller, by design, she is not going to be working from the same agenda as procurement, whose mission in life is to take cost out of a contract.
* She does not like to provide a high price, knowing they will knock it down, as she negotiates in good faith with her business stakeholder.
* She tells procurement that she has already worked with the stakeholders and has provided a good price for the value they need.
* If they think that the business stakeholder missed something or a remix is needed, she will work with them.
* You increase the cost to the stakeholders if you hire someone who does not do as good of a job.
* If you have not internalized your value, then you are vulnerable to those kinds of arguments.
* If you have done a good job, your stakeholder is prepared to be your advocate with procurement.
* The stakeholder has to do his due diligence before procurement ever sees the proposal.
* Procurement's tactic is to say to competitors, “This is the business outcome I need – can you do it for less?”
* You are exposed to these tactics if you have not worked with your stakeholder throughout the process to make them understand why you are uniquely qualified for that project.
* You must be able to explain that you are not only providing the value required but that you are eliminating risk.
* Some procurement people come with a win-win approach; others approach it as a boxing match.
* Procurement is a reflection of the company culture.
* Financial consulting and professional service firms have...]]> Episodes Archives - Art Of Value full false 56:45 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing A Second Chance at Value Pricing with Tim Dietrich – 073 https://artofvalue.com/second-chance-value-pricing/ https://artofvalue.com/second-chance-value-pricing/#respond Tue, 01 Dec 2015 13:00:52 +0000 http://artofvalue.com/?p=6539 Tim Dietrich is a mobile application consultant and the developer evangelist for Airtable. He was formerly a database consultant in the FileMaker space, creating several open source projects for the community. He majored in computer science at Towson University. Tim's first appearance on the Art of Value was episode #28, A Contrary View to Value […]

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]]> https://artofvalue.com/second-chance-value-pricing/feed/ 0 Tim Dietrich is a mobile application consultant and the developer evangelist for Airtable. He was formerly a database consultant in the FileMaker space, creating several open source projects for the community. Airtable. He was formerly a database consultant in the FileMaker space, creating several open source projects for the community. He majored in computer science at Towson University. Tim's first appearance on the Art of Value was episode #28, A Contrary View to Value Pricing.
It Is Not Too Late

* What is the most important thing you can share about pricing?

* It is never too late to change your mind and give value pricing a shot.
* Tim started using value pricing over the summer, and it is working for him.
* He decided to go all-in with value pricing.




* What are the positive changes from switching to value pricing?

* Recording episode #28 in October 2014 got Tim thinking.
* Tim had a nagging feeling about value pricing that was similar to how Kirk felt after the panel discussion at DevCon.
* Tim thought he might work up to it.
* He started to charge differently, based on a light-bulb moment from his conversation with Kirk about charging for the requirements phase of the development process.
* He published prices on his site as package deals, but that was a way of saying, “this is my hourly rate,” which felt horrible.
* In the spring, he pulled the plug on database development and moved to mobile development.
* This time around, he wanted to do things right.
* He went through Paul Jarvis' Creative Class, which is like a boot camp for freelancers.
* At that point, Tim realized that the new line of business gave him an opportunity to give value pricing another try.
* He had three defining moments:

* The interview with Susan Fennema in August, A Live After Action Review, was like seeing behind the scenes of MightyData, and it clicked for him.
* Double Your Freelancing Conference with Brennan Dunn included a presentation by Jonathan Stark, which made Tim realize that he needed to do it.
* He realized that his best month ever almost killed him due to the number of hours he worked while balancing his other customers and family.

* That whole year was good because he was mixing hourly billing with fixed bid work and, without realizing it, he was doing projects based on value.
* He would stop and think what it was worth to the customer and bid it that way.
* The results were phenomenal, but he did not realize he could maintain it exclusively.




* His long-time customers have noticed that he is happier.
* Value pricing changed the way he worked significantly.
* He loves what he does now and is anxious to get to work.



The Switch to Value Pricing

* What did you have to overcome to make the switch?

* He had a fresh start, so it was easier.
* It required a leap of faith.
* It can be a challenge to serve your previous customers by the hour while you start to value price with new ones.
* Over the next few months, he is going to convert some of those older customers.
* Those conversion customers:

* Make the switch and like it.
* Do not make the switch, and you can refer them.
* Try to make the switch,]]> Episodes Archives - Art Of Value full false 1:02:36 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Use Joy to Position Your Business with Richard Sheridan – 072 https://artofvalue.com/use-joy-position-business/ https://artofvalue.com/use-joy-position-business/#respond Tue, 24 Nov 2015 13:00:24 +0000 http://artofvalue.com/?p=6232 Richard Sheridan is the co-founder and CEO of Menlo Innovations. The title on his business card is “Chief Story Teller.” He is also the author of Joy, Inc. In his career, he has grown from programmer to vice president to entrepreneur. He loves to ski, and recently he set a personal record, completing a 5K […]

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]]> https://artofvalue.com/use-joy-position-business/feed/ 0 Richard Sheridan is the co-founder and CEO of Menlo Innovations. The title on his business card is “Chief Story Teller.” He is also the author of Joy, Inc. In his career, he has grown from programmer to vice president to entrepreneur. He loves to ski, Joy, Inc. In his career, he has grown from programmer to vice president to entrepreneur. He loves to ski, and recently he set a personal record, completing a 5K in under 30 minutes.
Creating Value Through Software

* What is the most important thing you can share about pricing?

* Avoid the trap of believing that the lower the price, the more likely you are to win the deal.
* There is no price too low for someone shopping only on price.
* The conversation has to shift to value:

* What does success look like?
* What are we going to deliver?
* Why are we a good match for you as a company?


* Anyone can relate to a business through compelling, authentic stories.
* If you can communicate what you believe, the customers that seek you out will be a better fit.
* As soon as you start showing spreadsheets and talking ROI, you have lost the game.
* The richness is how you think about the endeavor with your humanity.
* Asking the customer what success looks like allows you to relate the story to them.
* No one comes as a perfect match your services, you have to create great customers.
* Slow the sales process down.
* Make sure that there is a consistency with the people you choose as customers.
* The biggest danger in a sales conversation is to listen to what the customer needs, and then sell that you can do it.
* Understand your value proposition and what it is you can bring to the customer.
* All the marketing efforts at Menlo are education-based.
* The Menlo website is a great example of how to tell a story on your website.




* What are the two most expensive types of software projects?

* The most expensive is the one that never sees the light of day.
* The second most expensive is when you deliver it, but no one uses it because they hate it.
* Menlo has created a culture based on the Business Value of Joy, which is very well-defined.
* The goal of the customer is to delight the people they intend to serve: end-user delight with solid working software.
* The software industry has called the users stupid and written “dummy” books for them.
* They had to reinvent the whole culture of software development to create “High-Tech Anthropology”.




* What is “doing the simplest thing that could possibly work”?

* This anti-engineer model avoids fascinating people with how smart you are.
* Look at what the simplest thing is that will solve the problem for the customer, which can sometimes be the hardest thing to create.
* A business defines itself by the opportunities to which is says “no”, and to which is says “yes.”
* All sales opportunities have opportunity costs, absorbing the capacity of your team in a service business.
* When you choose bad projects, you may pay the bills in the short term, but it affects the morale of your team.
* Understand where the customer is headed and how you are a fit; otherwise, refer them to a competitor that is a better fit.
* Close sales when the time is right, based on when you are sure it will be a great relationship.



Low-Tech Project Management

* What is Origami project management?

* When they plan their projects, they write the pieces of a project on 3×5 cards.
* They then add an hourly estimate to each card and photocopy the card.
* They fold the copy proportional to the size of the estimate,]]> Episodes Archives - Art Of Value full false 47:09 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Impact of Really Smart People with Kirk Bowman – 071 https://artofvalue.com/impact-really-smart-people/ https://artofvalue.com/impact-really-smart-people/#comments Tue, 17 Nov 2015 13:00:29 +0000 http://artofvalue.com/?p=6492 This episode is a summary of two conferences Kirk Bowman attended this quarter. The ideas from these events challenged his thinking and influenced how he will do business in the future. The conferences were the VeraSage Symposium in Boston and Regency Mastermind in Phoenix. VeraSage Symposium Asking Great Questions – Ed Kless with Sage Shut Up and Eat Your French Fries from The […]

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]]> https://artofvalue.com/impact-really-smart-people/feed/ 2 This episode is a summary of two conferences Kirk Bowman attended this quarter. The ideas from these events challenged his thinking and influenced how he will do business in the future. The conferences were the VeraSage Symposium in Boston and Regency ... VeraSage Symposium in Boston and Regency Mastermind in Phoenix.
VeraSage Symposium
Asking Great Questions – Ed Kless with Sage

* Shut Up and Eat Your French Fries from The Soul of Enterprise
* To be great consultants, we have to ask great questions.
* Examples of great questions include:

* Would it be appropriate at this time to ask you a few questions?
* What is the story that you keep telling yourself about the problems you face?
* MOAQ (mother of all questions, from Peter Drucker) – What is the question, that if you had the answer to it, would set you free?



High Value Software Projects – Kirk Bowman with Art of Value

* Software projects for efficiency only are low value and not worth doing.

* Conversations with customers were not having the enough impact.
* What question can you ask in the first conversation that would bring the impact to light?
* How does this impact revenue? Profit? Income?

* The person will know the information and share it.
* The person will not know; you will need to talk to someone else.
* The person is not willing to have the conversation because of lack of trust or relevancy.
* Revenue without an impact on profit is not worth it.
* Profit seems more private.
* For a small business, an increase in revenue can translate to a rise in profit, leading to a boost in personal income.


* What is the MOAQ for each customer segment?
* If your business is based on value pricing, you cannot make a living from low-impact projects.
* Developing and implementing custom software must have a substantial impact on the organization.



Value Compensation – Chris Marston with Exemplar

* Internal value culture or value economy says that if you are going to price customers on value, you should compensate employees based on value.
* Art of Value Society on Facebook had a discussion on this topic recently.
* Identify 5 key roles that create value in the organization:

* Opener – Begins a conversation with a customer and connects them with the company.
* Closer – Continues that relationship and reaches a signed agreement, so the company makes revenue from that relationship.
* Relationship Manager – Maintains the relationship between the customer and the company.
* Project Manager – Is required for successful value pricing.
* Do-er – The person that does the work (writes the contract, designs the software, etc.)
* A percentage is assigned to each role, and it changes depending on the project lifecycle.



Fire Each Customer Every Year – Paul Kennedy with O'Byrne & Kennedy

* This idea resonated with the attendees.
* Traditionally, in accounting, every 4th quarter, accountants are focused on renewing business for the next year.
* Paul wants to customers who every year make the choice to do business with him.
* They earn their business again, every year.
* When he tries to pull away from his customers,]]> Episodes Archives - Art Of Value full false 35:08 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Making the Transition to Value Pricing with Adrian Simmons – 070 https://artofvalue.com/making-transition-value-pricing/ https://artofvalue.com/making-transition-value-pricing/#respond Tue, 10 Nov 2015 13:00:19 +0000 http://artofvalue.com/?p=6230 Adrian Simmons is the Chief Creative Designer at Elements CPA. He also is the director of Thriveal Laboratory, which encourages innovation in the accounting profession. Adrian worked at KPMG for two years before joining his father's accounting firm. In 2013, he had the honor and privilege to re-imagine the firm. How to Switch to Value Pricing What is the most important thing […]

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]]> https://artofvalue.com/making-transition-value-pricing/feed/ 0 Adrian Simmons is the Chief Creative Designer at Elements CPA. He also is the director of Thriveal Laboratory, which encourages innovation in the accounting profession. Adrian worked at KPMG for two years before joining his father's accounting firm. Elements CPA. He also is the director of Thriveal Laboratory, which encourages innovation in the accounting profession. Adrian worked at KPMG for two years before joining his father's accounting firm. In 2013, he had the honor and privilege to re-imagine the firm.
How to Switch to Value Pricing

* What is the most important thing you can share about pricing?

* Pricing is dynamic and linked to value, which is also dynamic.
* Do not lock yourself into a fixed number.
* Stay in sync with value.
* Get comfortable with the flexibility.
* There is no mathematical formula; think in organic, human terms.
* Different people have different expectations, opportunities, and impact.
* Do not focus the product; focus on the customer.
* Pricing is human.
* The writings of Ron Baker had a lot of resonance when Adrian got out of school.
* In 2011, he moved into a leadership role and became involved with Ron Baker and Thriveal.




* What is the first step to implementing value pricing?

* You have to be convinced yourself.
* Soak yourself in it by reading Implementing Value Pricing; talk to others who value price.
* Study until you reach a saturation point where you have to start doing it.
* Start with new prospects and apply the new process to them.
* Approach top-tier customers with whom you have a good rapport.
* Ask customers to self-select into levels.
* He worked with the top-tier customers first and then with new prospects.
* He constantly revised his approach through multiple iterations.
* It takes time to get to get comfortable with it.




* What was easy and hard about switching to value pricing?

* The conversation with the right customers became more natural.
* Rooting out assumptions and modifying the systems was more difficult.
* Having the confidence not to react emotionally when the approach does not work for a particular customer was tough.




* What are some beliefs or assumptions you have to challenge?

* Value is tied to time is an assumption you have to break; you have to let go of the security blanket.
* Self-doubt is one of the challenges you have to overcome.
* Other beliefs to overcome:

* The revenue will not be there.
* You will not be able to find the value.
* You have to know everything beforehand.


* Hourly billing is a suboptimal tool to deal with uncertainty.
* Tracking hours prevents us from innovating as quickly as we can.
* Value pricing is a set of tools that is more agile and adaptable.
* Going on a value quest with customers led to changing the product mix.




* What are some techniques you use to manage uncertainty?

* Ask great questions to uncover the unknown.
* Create different tiers to allow the customer to choose.
* You and your customer should mutually build value together.
* Give up the security of the knowledge upfront, but gain confidence in the process to discover value.




* What is the underlying motivation to pursue value pricing?

* Your self-value is usually a good motivator.
* If you treat yourself as an hourly worker, it degrades your self-worth.]]> Episodes Archives - Art Of Value full false 55:07 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing VeraSage State of the Union 2015 with Baker, Kless & Chisholm – 069 https://artofvalue.com/verasage-state-union-2015/ https://artofvalue.com/verasage-state-union-2015/#respond Tue, 03 Nov 2015 13:00:55 +0000 http://artofvalue.com/?p=6252 This episode of the Art of Value Show is a live recording from the bi-annual VeraSage Symposium, which was in Boston, MA. The distinguished panelists or VeraSagi are Ron Baker, Ed Kless, John Chisholm and Kirk Bowman. This episode will be rebroadcast on The Soul of Enterprise with Ron & Ed and Pricing Power by Steve Major. What is the future of value […]

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]]> https://artofvalue.com/verasage-state-union-2015/feed/ 0 This episode of the Art of Value Show is a live recording from the bi-annual VeraSage Symposium, which was in Boston, MA. The distinguished panelists or VeraSagi are Ron Baker, Ed Kless, John Chisholm and Kirk Bowman. VeraSage Symposium, which was in Boston, MA. The distinguished panelists or VeraSagi are Ron Baker, Ed Kless, John Chisholm and Kirk Bowman. This episode will be rebroadcast on The Soul of Enterprise with Ron & Ed and Pricing Power by Steve Major.

* What is the future of value pricing?

* Ron Baker – It is incredibly bright and optimistic.
* Pricing is now a profession and a C-Suite function.
* Professional Pricing Society conferences are global with the US leading the way.
* Because pricing is becoming so specialized, it is too focused.
* The death of the billable hour is not within reach, but it is within sight.
* Hourly billing has no enemies but is intensely disliked by its friends.
* Ed Kless – There are a lot of people trying to make pricing too much science, rather than art.
* John Chisholm – Pricing has to be a core competency in business school.
* Law firms are still challenged by value pricing and it is the exception rather than the rule.
* Value pricing changes everything about your business.
* It is a management innovation, not a just a business model.
* In technology, there is a group that is ready for something different, but they do not think business should be that hard.
* Change is occurring with the firms who are receptive.
* Ed Kless – Value pricing can end project management as it is known today.
* Earned value is a 9-step process to compute value that is being taught to project managers.
* The predictive market is an idea where people “gamble” on when a project ends.
* Project management is being made too complex.
* ROWE is a results-only work environment: Every position in an organization is defined by the results that are expected to be achieved.
* Leaders do not want to define roles by results because it is too hard.
* Measuring the input is an illusion of control.




* Thomas Bowden – Is pricing art or science?

* Tim's Vermeer used scientific techniques to create art.
* Ed Kless – The real concern is that once you input numbers, people believe then that it must be scientific.
* Ron Baker – It is not 100% art. You need some numbers behind it, but you still need judgment.




* Wes Higbee – What is the connection between price and purpose?

* There is a level of competitiveness involving purpose.
* John Chisholm – There is something more important than money.
* The big corporations are starting to tap into social responsibility.
* Ron Baker –  Wealth gives us the freedom to be more purpose driven.
* It is more prevalent for knowledge workers to look for a purpose now.
* Conscious Capitalism, by John Mackey, CEO of Whole Foods, has an analogy for profit: it is like red blood cells in your body.
]]> Episodes Archives - Art Of Value full false 54:48 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Fundamentals of Project Management with Cesar Abeid – 068 https://artofvalue.com/fundamentals-project-management/ https://artofvalue.com/fundamentals-project-management/#respond Tue, 27 Oct 2015 12:00:12 +0000 http://artofvalue.com/?p=6199 Cesar Abeid is a Certified Project Mangement Professional and Vice President of Client Services at Remontech. He started his career as an electrical engineer. He is the author of Project Management for You and host of the Project Management for the Masses podcast. What Is Project Management? What is the most important thing you can share about pricing? Do not become a commodity. Be […]

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]]> https://artofvalue.com/fundamentals-project-management/feed/ 0 Cesar Abeid is a Certified Project Mangement Professional and Vice President of Client Services at Remontech. He started his career as an electrical engineer. He is the author of Project Management for You and host of the Project Management for the Mas... Certified Project Mangement Professional and Vice President of Client Services at Remontech. He started his career as an electrical engineer. He is the author of Project Management for You and host of the Project Management for the Masses podcast.
What Is Project Management?

* What is the most important thing you can share about pricing?

* Do not become a commodity. Be different, and then you have no competition.
* The question then becomes, “What are people willing to pay for what I do?”
* If you think you are a commodity, differentiate yourself in a specific niche.
* For example, if you are a web developer outline your differences – WordPress, bilingual, family man, etc.
* Narrow your target market and offer specific solutions to that market.
* “Life is a project; you are the manager” is his motto.




* What is the definition of a project?

* The textbook definition is an endeavor that has a definite beginning, a definite end, is done by a team and creates something unique.
* Manufacturing the Ford Focus is not a project; that is operations.
* Creating the 2017 Ford Focus is a project, which ends with the production of the car.
* It is important to differentiate between projects and operations.
* When you are faced with a new challenge, are you going to be able to look back a few months later and say it is complete?
* If not, it is not a project.




* What is the synergy between Getting Things Done (GTD) and project management?

* GTD is a methodology for living life in the 21st Century.
* How do you handle things when they come?
* If you need to take action for an item that more than one step, it is a project.
* For most simple projects, you can move through the steps, one after the other, as GTD describes.
* Project management involves thinking past the very next step.
* GTD is for the individual to have clarity and a clear mind to focus.



Value and the Project Manager

* Is project management easier if you have an effective value conversation?

* Value and project management come together when you realize what you need to do.
* Once you are focused on the value you need to deliver, project management becomes much easier.
* If the value you need to create requires the creation of something that is complex, project management pays off.
* You have to stay focused on why you are doing something to be effective in project management.
* Know the main pain point so that you can deliver on time, on budget, and within scope.
* Understand that you have competing constraints (the triangle of scope, time and budget) during a project and discuss how one change affects the other two.
* Communication with the customer regarding this can help them believe you are on their side.




* How can you have the difficult conversation when the Triangle of Truth is out of balance?

* Many project managers come from a technical backgroun...]]> Episodes Archives - Art Of Value full false 45:23 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The History of the Theory of Value with Baker & Kless – 067 https://artofvalue.com/history-theory-value/ https://artofvalue.com/history-theory-value/#respond Tue, 20 Oct 2015 12:00:17 +0000 http://artofvalue.com/?p=6201 The history of economic thought regarding the concept of value is "a tale of two theories". The Labor Theory of Value states that value is equal to the sum of the labor and materials to create something. The Subjective Theory of value states that value is the perception in the mind of the customer. Ron Baker and Ed Kless discuss these theories from chapter 8 of Ron's book Pricing on Purpose.

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]]> https://artofvalue.com/history-theory-value/feed/ 0 The history of economic thought regarding the concept of value is "a tale of two theories". The Labor Theory of Value states that value is equal to the sum of the labor and materials to create something. The Subjective Theory of value states that value... Early Theories of Value

* What was Adam Smith's paradox?

* In The Wealth of Nations, published in 1776, Adam laid out the Diamond-Water Paradox.

* Nothing is more useful than water, but it will purchase scarce anything.
* Diamonds have scarce any value in use, but quite a few other goods may be had in exchange for it.


* Smith's answer was diamonds are scarce, but he was incorrect.
* Scarcity does not create value.
* Your kids drawings are scarce, but that does not mean they are valuable.
* Value is in the perception of the customer.
* Adam struggled with this philosophy his whole life.
* David Ricardo provided the theory of comparative advantage.
* On his deathbed, he struggled with why wine is more valuable over time.

* The lump of coal found behind the diamond is not worth as much as the diamond, despite the same amount of work to retrieve it.
* Undeveloped land should have no value if there is no labor in it.
* Finding a diamond should make it worth less.
* Labor on a movie is the same, so everyone should like it the same.


* David's theory affects knowledge work like commodities.




* Who were the French Physiocrats?

* They thought the labor theory of value was wrong, and the only thing with value was land.
* For example, if you raised sheep and got the wool, that was OK.
* However, if you took the wool, knitted it into a cap and then tried to sell it, you were exploiting the shepherd.
* Jean-Baptiste Say named them The Physiocrats.
* It is is the most-wrong theory of value.
* Fewer people are working in manufacturing, but we produce twice as much.
* Inputs do not measure the value; the outputs do.
* Some believe marketing does not create value, but that engineering does.
* Rory Sutherland talks about how intangible value was used to create a marketing campaign that saved Shreddies.




* What was the contribution of Karl Marx?

* He was the first to put a theoretical framework around the labor theory of value.
* He wrote Value, Price and Profit, saying that a product has value because it is a crystallization of social labor.
* In 1871, a group of economists demolished the theory once and for all.
]]> Episodes Archives - Art Of Value full false 52:20 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Value Pricing Is A Business Model with David Wells – 066 https://artofvalue.com/value-pricing-business-model/ https://artofvalue.com/value-pricing-business-model/#respond Tue, 13 Oct 2015 12:00:55 +0000 http://artofvalue.com/?p=6192 In 2012, David Wells led Moores, a 40-lawyer practice, through a transition from hourly billing to value pricing. From his experience, he learned value pricing is more than a way to determine what to charge a customer. It is a business model, a philosophy, and a way of thinking. David shares how the new model changed the customers, employees, processes, and systems at Moores for the better.

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]]> https://artofvalue.com/value-pricing-business-model/feed/ 0 In 2012, David Wells led Moores, a 40-lawyer practice, through a transition from hourly billing to value pricing. From his experience, he learned value pricing is more than a way to determine what to charge a customer. It is a business model, Switching to Value Pricing

* What is the most important thing you can share about pricing?

* When you charge by the hour, you are not pricing at all.
* There is a transformation that happens in a professional knowledge firm when it starts pricing.
* Lawyers who value price are more content in their profession.
* Lawyers in their office celebrate after a good proposal that is accepted, rather than only after a big legal win.
* The transformation of the personnel was unexpected and delightful.
* They were introduced to value pricing by John Chisholm in 2010.
* One of the principals was bold enough to suggest he would do it in his department on a small scale.
* In 2011, they decided to have a red hot go at value pricing.
* Twelve months from starting the trial, they were opening  50% of their files on value pricing.
* In 2012, they committed 100%.
* The transition was well-supported and a process.
* It has provided a competitive advantage.




* What is your advice for a firm that is making the switch to value pricing?

* It was not a grand design; they just tried different things, and they worked.
* If you just flirt with it, it is unlikely to result in success.
* Commit to a trial period; at the end, be all in or all out.
* Measure the results that you attain.



The Business Model of Value

* Why is value pricing a business model, not a pricing model?

* Moores Agreed Pricing is a business model, not a pricing model.
* To embrace value pricing, they had to make changes to their knowledge management system– the way they collect and shared their knowledge.
* A new set of competencies had to be developed to measure employees, to avoid basing it on hours.
* The new competencies are more innovative and encouraging for the employees.
* Systems for managing projects had to become more sophisticated.
* Business development also had to be modified to determine which customers would be most suitable.
* It has enabled a completely different practice than what they had 4-5 years ago.
* The results are:

* Happier customers.
* Different customers.
* Different employees.


* Total headcount is about 80 people, reduced from 120 in 2012, but they are more profitable.
* The ability to strategize upfront for value and implementing the value has resulted in parting company with some lawyers.
* The value-pricing model scales if you are committed and have buy-in from leadership.




* What are the three steps you use to set a price?

* Determine the objective.

* There is no point in Moores embarking on a process unless they know they can create value for the customer.
* Determine what it is the customer is hoping to achieve.
* Sometimes the result they hope to achieve is not the best result for the customer.
* If they cannot create the value needed, they will refer them to someone who can.
* Sometimes the cost of delivering the result might be about the same or less than the profit/value for the customer.
* If they agree on the objective, they then will scope the work.


* Determine the scope.

]]> Episodes Archives - Art Of Value full false 42:12 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Pursuing of the Economic Buyer with Higbee & Riopelle – 065 https://artofvalue.com/pursuing-economic-buyer/ https://artofvalue.com/pursuing-economic-buyer/#respond Tue, 06 Oct 2015 12:00:09 +0000 http://artofvalue.com/?p=6036 Wes Higbee is a software consultant from New York. He has been interviewed on the AOV Show before about software consulting, agile development, and customer value. Matt Riopelle is a creative consultant from Austin. He was a guest on the AOV Show previously to discuss the importance of pricing. Wes and Matt practice value pricing in their businesses and frequently […]

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]]> https://artofvalue.com/pursuing-economic-buyer/feed/ 0 Wes Higbee is a software consultant from New York. He has been interviewed on the AOV Show before about software consulting, agile development, and customer value. Matt Riopelle is a creative consultant from Austin. software consulting, agile development, and customer value. Matt Riopelle is a creative consultant from Austin. He was a guest on the AOV Show previously to discuss the importance of pricing. Wes and Matt practice value pricing in their businesses and frequently teach others how to implement it.
Defining the Economic Buyer

* What is the economic buyer?

* Matt – It is someone who has the intent, the authority and the ability to purchase.
* Wes – It is the person with authority and accountability.

* Authority means that someone can make the decision to move forward and can get the money.
* Accountability means that the person is responsible ultimately for the result of the project.


* Kirk – It is an operational and a financial decision maker, and the same person could be both.
* Wes – You need to understand why you need to speak to the economic buyer to stick to the rules.




* What is a typical job title for the economic buyer?

* Wes – Job title is a good way to gauge but do not dismiss someone as not being a buyer, especially in a small company.
* Sometimes a President or a Vice President in a large company might not have the authority or accountability you would expect.
* Ask “who will approve the project” to uncover the final buyer.
* The title can be helpful, but it can be deceptive.
* In an organization under 50 people, you usually want to talk to the owner.
* In a large organization, there can be more than one buyer with different titles that have the authority and a budget.
* Matt – Knowing titles and organizational charts is much more important in outbound sales.
* For inbound sales, you are usually only one person removed from the final buyer.
* Listen to the name and titles of others who might be involved.



The Importance of the Economic Buyer

* Why is it important to talk to the economic buyer?

* Wes worked with the wrong person, only to discover that the decision maker did not have the project on his radar.
* If he had pressed, he might have been able to get to the person setting the priorities so that he could help with the actual priorities.
* Kirk – Why is it was in the best interest of the customer for a provider to speak to the economic buyer.
* Matt – If you are trying to offer the maximum amount of value to the customer, you have to talk to the people to whom it matters the most.
* If you cannot talk to the people it impacts the most and understand their motivation, then it is a waste of time.
* If the customer is going to trust you to create value, you cannot effectively do it without talking to the decision maker.
* Matt said that he would talk to as many people in the organization as possible during the discovery process.
* If you come in at the wrong place, someone may be able to articulate the value, but that person might not have the authority to help the people who ultimately need help.
* Kirk – It is a waste of time, energy, effort, resource, etc. if you do not talk to the right person.
* It is easy to go to an organization with an hourly rate and enter the company at any level.
* As a result when the organization changes, the customer relationship gets pushed down to lower levels.




]]> Episodes Archives - Art Of Value full false 1:10:48 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Ethics of Price Discrimination with Rags Srinivasan – 064 https://artofvalue.com/ethics-price-discrimination/ https://artofvalue.com/ethics-price-discrimination/#comments Tue, 29 Sep 2015 12:00:00 +0000 http://artofvalue.com/?p=6040 Rags Srinivasan is an engineer, turned pricing consultant. His epiphany came when he realized it is not about costs. Nowadays, he leverages an analytical approach on pricing. He has an MBA from the Haas School of Business at Berkeley, where he studied with Teck-Hua Ho. He is an avid hiker and said that if it is not […]

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]]> https://artofvalue.com/ethics-price-discrimination/feed/ 2 Rags Srinivasan is an engineer, turned pricing consultant. His epiphany came when he realized it is not about costs. Nowadays, he leverages an analytical approach on pricing. He has an MBA from the Haas School of Business at Berkeley, Haas School of Business at Berkeley, where he studied with Teck-Hua Ho. He is an avid hiker and said that if it is not longer than 8 miles, it is not worth doing.
The Customer's Value Perception

* What is the most important thing you can share about pricing?

* There are no pricing problems; only segmentation problems.
* Think about your end-customer first.
* Value is in the perspective of the person with whom you are talking.
* The value changes in context as well.




* How does “list price” communication value?

* Price is the method to capture value added by a product. The most common way to indicate prices to the customer is the list price, be it price tags in retail or invoice price in B2B transactions. – What is Price Realization?
* When you purchase a mattress, you do not do the math on how much you are going to sleep and how much per hour you are willing to pay.
* The list price is the high watermark that a customer needs to put in their mind.
* Demonstrating different choices at different prices helps to educate the customer on the value.




* How does a price war destroy value?

* War results in destruction and casualties and price war leads to value destruction. – Dropped Mobile Profits
* There is a misconception of success when you capture market share.
* The causation effect is lost in the minds of people during a price war.
* Market share at any cost is chasing the wrong target.
* Which comes first, market share or profit?
* Profit comes first as it creates value for the customer; value comes first.



Price Discrimination: Good and Bad

* How does price discrimination help the customer?

* Our Global economy depends on practicing price discrimination, in fact, it is arguable that without price discrimination some of us won’t be able to avail ourselves of certain products, including life-saving prescription drugs. – Aligning Price with Value Received
* Price discrimination should be rebranded as price homogenization.
* Almost every customer values a product differently.
* If you provide a product that is the same price to all customers, 90% of them will not see the first for their needs.
* In India, if you want to buy a name-brand drug, almost none of the people can afford it.
* If it is a generic, it appeals to more people.
* The ones who can afford it can still purchase the name-brand.


* Price discrimination is not about squeezing every bit of consumer surplus from every customer (in one model it is). It is about getting customers to willingly pay the price they can pay and still feel happy about it. – Price Discrimination At The Altar of God – Revisited
* If you take away the customer's choice, you are not practicing good pricing discrimination.
* Let your customers self-select.
* It is a $25 flat fee to have a Lexus or Corolla blessed at a Hindu temple.
* The value of the ceremony is different to each owner.
* The temple should offer the car owners three blessing options at different pri...]]> Episodes Archives - Art Of Value full false 41:59 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Using Value to Steal the Show with Michael Port – 063 https://artofvalue.com/using-value-steal-show/ https://artofvalue.com/using-value-steal-show/#respond Tue, 22 Sep 2015 12:00:24 +0000 http://artofvalue.com/?p=6067 Michael Port is the author of six books and a New York Times best-selling author. The Boston Globe commented, “He is an uncommonly honest author.” He has been called a marketing guru by the Wall Street Journal and a sales guru by The Financial Times. His seventh book, Steal the Show, is due this fall. “Book Yourself […]

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]]> https://artofvalue.com/using-value-steal-show/feed/ 0 Michael Port is the author of six books and a New York Times best-selling author. The Boston Globe commented, “He is an uncommonly honest author.” He has been called a marketing guru by the Wall Street Journal and a sales guru by The Financial Times. New York Times best-selling author. The Boston Globe commented, “He is an uncommonly honest author.” He has been called a marketing guru by the Wall Street Journal and a sales guru by The Financial Times. His seventh book, Steal the Show, is due this fall.
“Book Yourself Solid” Sales System

* What is the most important thing you can share about pricing?

* People buy to express their values.
* If you look at the sum of what we purchase, you get a clear picture of who we are.
* Your price is about the buyer, not you or your services.
* It is about how the purchase of the product or service makes them feel about themselves.
* It gives them an opportunity to express their values, what they want other people to recognize.




*  What is the Book Yourself Solid sales system?

* Book Yourself Solid outlines a simple sales system.
* Marketing is not what gets you business; it just gets people aware of you.
* What you do after someone becomes aware of you is what books the business.
* Sales offers should be proportionate to the amount of trust you have earned.
* If you have the sales conversation at the right time, it is easier to book business.
* If you design your sales system properly, you will have no problem making the sale.
* The 4-part sales system asks these questions:

* What does your customer want to achieve?
* Why does the customer want to achieve it?
* Does the customer want help to achieve the goal?
* Would you like me to help you, because you are my ideal customer?






* If the customer finds you, should you assume they want your help?

* There is an implication that they want you if they have sought you out.
* However, it is a good idea to ask them to articulate and confirm it to avoid tire kickers.
* You want to get an intentional yes from the customer.
* If you focus on the customer, you do not have to prove that you can do the work.
* Customers want to know what you stand for and what your philosophy to make a buying decision.
* Control how you are known in the world.




* In Part 3 are you asking, “Is this a problem you want to solve right now?”

* Yes, and it is probably a concept with which people are more familiarity.
* Having different ways to process information helps the audience understand it better.
* Every person should use their own language to convey meaning.
* Having structure gives you a process to follow, without needing a script.
* Understand how the process works, and then determine how it works for the individual.
* Being process-oriented helps you understand the big picture to fill in between the lines.
* Understand how things work from a basic standpoint; then you can geek out on the details.



Improvisation As a Sales Skill

* Why is improvisation an important sales skill?

* If you sell something,]]> Episodes Archives - Art Of Value full false 54:42 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Accountant Who Does Not Do Taxes with Barrett Young – 062 https://artofvalue.com/accountant-not-taxes/ https://artofvalue.com/accountant-not-taxes/#respond Tue, 15 Sep 2015 12:00:57 +0000 http://artofvalue.com/?p=5920 Barrett Young is an accountant who founded The Green Abacus in 2012. He has never kept a timesheet, no longer does tax returns, and has never worked for a Big Four Accounting Firm. Barrett served our country as a Marine in the infantry, and he loves to snowboard. Providing Unlimited Access What is the most important thing […]

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]]> https://artofvalue.com/accountant-not-taxes/feed/ 0 Barrett Young is an accountant who founded The Green Abacus in 2012. He has never kept a timesheet, no longer does tax returns, and has never worked for a Big Four Accounting Firm. Barrett served our country as a Marine in the infantry, The Green Abacus in 2012. He has never kept a timesheet, no longer does tax returns, and has never worked for a Big Four Accounting Firm. Barrett served our country as a Marine in the infantry, and he loves to snowboard.
Providing Unlimited Access

* What is the most important thing you can share about pricing?

* Pricing is personalized. It is elastic.
* The same thing can be valued by two people at completely different levels.
* He tells his gym that they do not charge enough, because of the value they are creating for him.
* His why is that he loves to feel like he is enabling someone else's success.
* As accountants, it is hard to explain to a customer that you are going to help them grow the company.




* What steps have you taken to educate the customer about the value you offer?

* In engagement letters and proposals, they provide unlimited access.
* It allows the customer the opportunity to rely on them more.
* He pushes the customer in conversations to ask more about their business and how else they can serve them.
* They are proactive and have regular monthly meetings.
* They do not do tax returns because business owners need them year round for value, not just during tax season.
* They offer business tax returns through a relationship with another tax accountant.
* They wanted to have control over the tax-return relationship, without doing the returns.
* Customers expected them to have a hand in their tax returns, so they had to create the option to work with someone else.



Price Before the Work Is Done

* What was your experience with pricing after the work was done?

* He jumped in to solve a problem with a customer on an IRS audit.
* They did not stop and examine the scope.
* It started as an opportunity to create good will and show some added value for which they were not going to price.
* The day before the IRS examination, his team did not think that it was right. They were not going to get paid for the work that they did on the project.
* The customer agreed that he should pay for the work.
* Barrett suggested a TIP charge to resolve the situation.
* You cannot price in arrears, but sometimes you get yourself into the situation where it is necessary.




* What is a TIP clause? And, what was the outcome?

* He learned of it from Ron Baker in Implementing Value Pricing.
* A TIP clause is the same as tipping the waitstaff at a restaurant – you are paying for the service (food) but you tip based on the performance of the server.
* TIP: To Insure Performance is the acronym.
* The TIP Clause for this customer was a sloppy attempt to request payment after the fact.
* It was lazy because he put all the value assessment on the customer after-the-fact.
* A TIP Clause is a valid pricing technique, but this was not the correct time to use it.
* He thought he was making it easier for the customer by letting them say “nothing” is your TIP.
* The customer did not respond for two weeks, and the office manager eventually asked for an invoice.
* The owner pushed him past the TIP Charge because he trusted that he would be charged correctly.]]> Episodes Archives - Art Of Value full false 46:04 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Psychology of Options in Pricing with Mark Wickersham – 061 https://artofvalue.com/psychology-options-pricing/ https://artofvalue.com/psychology-options-pricing/#respond Tue, 08 Sep 2015 12:00:58 +0000 http://artofvalue.com/?p=5918 Mark Wickersham is the #1 Amazon best-selling author of Effective Pricing for Accountants. He ran an accounting practice for seven years and is now a mentor to over 150 accountants in the United Kingdom. He is also an avid cyclist. Price Has Nothing to Do with Cost What is the most important thing you can share about […]

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]]> https://artofvalue.com/psychology-options-pricing/feed/ 0 Mark Wickersham is the #1 Amazon best-selling author of Effective Pricing for Accountants. He ran an accounting practice for seven years and is now a mentor to over 150 accountants in the United Kingdom. He is also an avid cyclist. Effective Pricing for Accountants. He ran an accounting practice for seven years and is now a mentor to over 150 accountants in the United Kingdom. He is also an avid cyclist.
Price Has Nothing to Do with Cost

* What is the most important thing you can share about pricing?

* Pricing has absolutely nothing to do with cost.
* In the 1990s, he believed you had to price based on time.
* In 1999, he discovered a better way of doing things.
* Pricing is about psychology, communication, and marketing.
* As professionals, we are not taught those things.
* Customers do not care about how many hours you spend doing the job; they only care about the result.
* Hourly billing is commercially stupid because the evidence proves it.
* When firms understand value pricing at a deep level (less than 10% do), they can get up to 100% higher prices.
* Firms that price based on time are not focused on the value side of the equation; they are focused on keeping prices low.




* In 2014, he surveyed 725 accounting businesses and asked how they priced.

* He learned they charged a large range of prices.
* A common accounting service is to act as the customer's registered address.
* 68% of the respondents did not offer the service, did it for free or included in a bundle.
* Only 32% charged a separate price for the service.
* There are a lot of services that accountants give away for free because they do not know how to price it.
* Of the 32% who charged for the service, the most common price was £100/year; they were just copying each other.
* One firm charged £480 and had no problem selling it.
* Mark taught a firm how to value price the service.

* Four customers signed up and a fifth customer paid twice as much.
* The firm was able to see an increase simply by charging for something it used to give away for free.





The Importance of Learning to Price

* Why do entrepreneurs fail to learn pricing as a skill?

* Of all the areas of business that you should learn, pricing is the most neglected.
* Pricing has the fastest and best impact on bottom line results.
* We can change how we price today and see results tomorrow.
* In seven months, one firm who worked with Mark added £30,000 to its profits.
* If you increase your average price by 33% and not lose a customer, you will double your profits.




* What can an entrepreneur do today to start learning to price?

* Ron Baker‘s book the Professional's Guide to Value Pricing is priceless.
* There are dozens of resources available on Amazon and YouTube.
* You need to commit some time to learn it.
* You have to have determination and focus on getting pricing right.
* Get over the things that hold you back and get in your way:

* Lack of confidence is a big issue.
* Lack of knowledge and systems also contributes.
* Everyone believes they have price-sensitive customers. In reality, only about 20% of people who are price sensitive, and they are not customers of a professional business.


]]> Episodes Archives - Art Of Value full false 56:17 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Value of Writing for Others with Kimanzi Constable – 060 https://artofvalue.com/value-writing-others/ https://artofvalue.com/value-writing-others/#respond Tue, 01 Sep 2015 12:00:12 +0000 http://artofvalue.com/?p=5906 Kimanzi Constable has gone from delivering bread to becoming a full-time writer. He writes for cool places like The Huffington Post, Entrepreneur Magazine, and Fox News. He has self-published over 100,000 copies of his books including, Are You Living or Existing? If you follow him on social media, you know he is a huge Taylor Swift fan. […]

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]]> https://artofvalue.com/value-writing-others/feed/ 0 Kimanzi Constable has gone from delivering bread to becoming a full-time writer. He writes for cool places like The Huffington Post, Entrepreneur Magazine, and Fox News. He has self-published over 100,000 copies of his books including, The Huffington Post, Entrepreneur Magazine, and Fox News. He has self-published over 100,000 copies of his books including, Are You Living or Existing? If you follow him on social media, you know he is a huge Taylor Swift fan.
From Delivery Driver to Author

* What is the most important thing you can share about pricing?

* Make sure you charge enough.
* His first business was covering vacation routes for independent bread distributors.

* He delivered bread for Sara Lee and every day he saw a person who was not in uniform.
* The distributor explained the business and that he could never take vacations.
* The distributor helped Kimanzi get started before he quit Sara Lee.


* He was charging a ridiculously low rate ($20/hour).

* One of the drivers pulled him aside and told him he was not charging enough.
* He said that Kimanzi had to charge at least $250/hour if he was going to be self-employed.


* He found a way to create value for the regular drivers.
* As soon as he had done a few routes, his calendar filled up for the year in a matter of days.
* He had no expenses because he used the equipment of other drivers.
* He paid attention to a conversation and started a business because he heard a need.




* What have you learned about perceiving and filling a need?

* The luck of being in the right place at the right time with your eyes open led to success.
* If he were trying to manufacture that situation, he would look and listen to what people say they need.
* After 12 years, his mentor was muscled out of his distributorship.
* The company could force them to do whatever it wanted.
* In 2011, he did not think he would have a business much longer, so he started journaling as a way to vent.
* After a summer of writing, he realized he had a lot of good stuff.
* Even though he had not thought of publishing, he heard of Amanda Hawking‘s success and decided to create an ebook.




* What are some takeaways you have learned about pricing?

* Depending on how you price, you are going to attract certain kind of customer.
* If you try to price low, you tend to attract people who are needier, more clingy and more demanding.
* When you raise the price, you attract a person who understands the value and considers it more of an investment.



Being Selective About Your Customers

* Amy Robles: What criteria do you use to select your customers?

* He will not work with just anyone.
* He wants to work with a firestarter.
* Some previous customers would drag him down, but he worked for them simply because he needed the income.
* Once he created a foundation, he decided to work with people who have tried 5-7 things without success, but are still trying.
* If he can give them guidance, he can get them to do incredible things.
* He does not work with people who nickel and dime or who ask a b...]]> Episodes Archives - Art Of Value full false 59:56 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Story of Disney’s Brilliant Price Hike with Joni Newkirk – 059 https://artofvalue.com/story-disneys-brilliant-price-hike/ https://artofvalue.com/story-disneys-brilliant-price-hike/#respond Tue, 25 Aug 2015 12:00:54 +0000 http://artofvalue.com/?p=5849 Joni Newkirk is the founder and CEO of Integrated Insight. She is a former Senior Vice President of Business Insight and Improvement at Disney. She was responsible for anything analytical outside traditional finance. One of the big things was pricing and revenue management for essentially everything Disney sold. They were responsible for forecasting revenue, which included things like daily attendance and a 10-year […]

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]]> https://artofvalue.com/story-disneys-brilliant-price-hike/feed/ 0 Joni Newkirk is the founder and CEO of Integrated Insight. She is a former Senior Vice President of Business Insight and Improvement at Disney. She was responsible for anything analytical outside traditional finance. Integrated Insight. She is a former Senior Vice President of Business Insight and Improvement at Disney. She was responsible for anything analytical outside traditional finance. One of the big things was pricing and revenue management for essentially everything Disney sold. They were responsible for forecasting revenue, which included things like daily attendance and a 10-year plan.
Lead With the Customer

* What is the most important thing you can share about pricing?

* Lead with the customer: understand your consumer and where he places value.
* What is the customer's value proposition?
* How do you marry your company's value proposition with theirs?
* Silo pricing goes back to organizational structure.
* The guest is coming to the destination and experiencing all of the areas.
* They are not looking at it as a transaction with a specific branch of the structure, but rather the overall experience.
* Teams get focused on what they are held accountable for and tend to forget about how the customer perceives the value.




* What is the power of pricing to change a company?

* Pricing, if done well, is one of those things that can add instant value to the bottom line.
* A 1% increase in pricing can lead to 5-10% improvement in net income.
* It takes very little marketing or capital to raise the price.
* Be intentional about pricing, especially if you are taking discounts or running promotions.
* Make sure you measure your price changes to see if it works.
* Target any discount at segments that might not be buying anyway – fence them in!
* There is art, as well as science, behind pricing.




* Why is holding a price for a long time a bad idea?

* The best intentions of doing a favor for your customers can result in a position of not serving them.
* You are dropping your net income if you hold a price for a long time.
* Over time, it may lead to not-smart cost cuts.
* It is hard to make up your pricing if you do not increase it slowly over time
* You end up with a big increase that affects your customers more dramatically.
* Fear is usually why organizations do not raise their prices.
* You decide that your customers will not take a price increase and would go somewhere else.
* You want to price the value of the product you are providing, not just the same product you can buy elsewhere.
* Unrestful markets can create more fear of price increases.
* If you better understand why they were doing business with you, it helps you understand how you can price based on the value.
* Fear comes from the lack of knowledge of the customer's perception of value.
* On the surface, it can appear that Disney sells theme parks.
* In reality, Disney is selling magical memories, quality time with your family, the chance to take your child to a place where they will be awe-struck, etc.; the theme park is secondary.
* All of that represents intangible value and is priceless.
* Every business is different and must be examined holistically.
* When you develop a successful strategy, it cannot always be applied everywhere else.
* Disney World and Disney Land do not use the same strategies.



Magic Your Way Strategy

* Why was black market reselling of a 2-3 day ticket a pricing problem for Disney?

* Disney did not sell a 2-3 day ticket, thinking it would prevent sales of 4-day tickets.
* The aftermarket sales of multi-day tickets took off, resulting in about 10% of the overall traffic.
* Disney looked at where they were making the most money (who was the best customer).
]]> Episodes Archives - Art Of Value full false 54:46 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Standardizing Value Through Products with Kai Davis – 058 https://artofvalue.com/standardizing-value-products/ https://artofvalue.com/standardizing-value-products/#respond Tue, 18 Aug 2015 12:00:03 +0000 http://artofvalue.com/?p=5790 Kai Davis is an outreach consultant who focuses on building relationships and online community. He is also an e-commerce consultant who helps businesses increase their sales. Previously he was a front-end developer for WordPress and a jazz pianist. He is speaking in September at the Double Your Freelancing Conference. Kai's Value Pricing Journey What is the most important thing […]

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]]> https://artofvalue.com/standardizing-value-products/feed/ 0 Kai Davis is an outreach consultant who focuses on building relationships and online community. He is also an e-commerce consultant who helps businesses increase their sales. Previously he was a front-end developer for WordPress and a jazz pianist. Double Your Freelancing Conference.
Kai's Value Pricing Journey

* What is the most important thing you can share about pricing?

* Price is subjective to each customer.
* When a customer is evaluating a purchase, they look at three things:

* The value they perceive they will receive from the product/project.
* The price.
* The cost of doing business with a consultant or product creator.


* If the customer's value gained is greater than price, it is a no-brainer for the customer to buy from you.
* Focus on increasing the value and then you can increase the price.
* The difference between the value and the price is the customer's profit.
* Sometimes when you raise your price, you increase demand because the perceived value also increases.
* By creating bundles, you can triple your price and provide more value to the customer.




* What was your first exposure to value pricing?

* Kai first learned of value pricing through Brennan Dunn's Double Your Freelancing Rate.
* The idea of pricing on value was very new to him and a bit scary.
* After talking through the obstacles, he decided to focus on just a few items and standardize them.
* Ask yourself if you can standardize your offerings and price based on value?
* Or, can you switch from an hourly or fixed rate, and price based on value?
* He flips between the standard offerings and value pricing.




* What was one of the biggest challenges while switching to value pricing?

* The hardest part was that he did not internally believe that he was worth the price he was charging.
* Think: “That is my hourly rate vs. That is the ROI we can create together.”
* Talk through the ROI with the customer, rather than haggling over the price.
* You can become an ally helping a customer improve their business, rather than a consultant who is simply a cost.
* Another challenge was becoming familiar with interviewing a customer to understand the value that can be created.
* Determining whether or not he wants to work with the customer is the prize, rather than the money being the prize.
* Some customers are challenged when providing details about their business.
* It requires developing courage to push through with potential customers.
* Value pricing is more honorable because you are not trying to maximize the amount of time; instead, you are trying to minimize the value.




* What have been the benefits to you from implementing value pricing?

* Working with fewer customers
* Working with better customers
* Making more money
* Being more respected
* Customers are more loyal
* His business is healthier
* More positive relationship with his customers.
* It allows you to focus on optimizing your relationships for multiple projects with your customers.



Creating Standardized Services

* How did you create the first productized service for your business?

* He looked at his offerings before and after his value pricing conversion, based on the audience and type of work he was doing.
* Website X-Ray (SEO audit) for a business came first – fixed scope, flat-rate offering.
* While not “value pricing”, it allows him to do a few things very well withou...]]> Episodes Archives - Art Of Value full false 56:47 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing A Live After Action Review with Susan Fennema – 057 https://artofvalue.com/live-action-review/ https://artofvalue.com/live-action-review/#respond Tue, 11 Aug 2015 12:00:44 +0000 http://artofvalue.com/?p=5672 Susan Fennema is the project manager at MightyData. We have worked together for over five years. This episode is a glimpse into the internal conversations we have to continuously improve service for our customers. Creating a Quick Win What is the value of offering a “quick win” to the customer? The biggest value is a quick turn-around. We can […]

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]]> https://artofvalue.com/live-action-review/feed/ 0 Susan Fennema is the project manager at MightyData. We have worked together for over five years. This episode is a glimpse into the internal conversations we have to continuously improve service for our customers. MightyData. We have worked together for over five years. This episode is a glimpse into the internal conversations we have to continuously improve service for our customers.
Creating a Quick Win

* What is the value of offering a “quick win” to the customer?

* The biggest value is a quick turn-around.
* We can learn faster to solve the customer's needs faster.
* Going deep, but only for the first phase, prevents overwhelming the customer and the provider.
* Moving the project forward on the first call speeds up the process.
* It helps the customer get to know you, you get to know the customer and decide if you want to work together.
* It has to be an impulse buy for the customer.
* What the customer learns through the process is often more valuable than what we learn.




* What does it mean to help the customer “help himself”?

* An in-depth questionnaire was created for the customer.
* The answers the customer provided made it obvious that they had to dig deeper.
* The insights that the customer can provide are significant.
* We have received push-back from customers but were able to redirect them to answer the questions for their specific situation.
* The insight that the customer gains is valuable whether or not they proceed to development.
* It is really discovery for the customer rather than for us.
* In teaching it to us, they are learning more about themselves.
* Blair Enns talks about diagnosing before you prescribe, and this process makes it easier.
* One questionnaire came back with “n/a” as the answer in many places, but we believe the wrong person answered the questions.
* We redirected it to the Project Champion to complete the questionnaire.
* There was initial fear to kick back the questions.
* If they refuse to answer the questions, it tells us that they are not a fit.
* Have the courage to tell the customer they need to do it, and explain the value to complete it.
* The idea of a “pricing council” can be applied to other things, especially communication.



Handling a Scoping Mistake

* How can you create value in a rush situation?

* The value of turning something around quickly is almost priceless, but a challenge for the consultant.
* We submitted a change request and were paid in 1.5 days.
* This project was likely underpriced – the urgency of requiring after hours work was not considered.
* FedEx teaches that there is value in the quick turnaround, in addition to what you are developing.
* Fixing and tweaking took longer than expected.
* We stuck to the spirit of the agreement.
* Adrenaline can affect your decision-making in rush situations – you can underscope or underprice.
* See rush opportunities as opportunities, not as an aggravation.
* Do not let adrenaline affect your pricing!




* Why is a scoping mistake really a pricing mistake?

* If you give the customer more flexibility and a higher price, you can make up for minor scope creep.
* You can be honest with your customer when you underscope (when you need more time).
* The customer offered to pay more for the project, but we chose to stick by our agreement.
* Sometimes you make a lot of money from a project, but other times you mess up.
]]> Episodes Archives - Art Of Value full false 49:45 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing You Can Learn To Price Too with Kevin Mitchell – 056 https://artofvalue.com/can-learn-price/ https://artofvalue.com/can-learn-price/#comments Tue, 04 Aug 2015 12:00:39 +0000 http://artofvalue.com/?p=5521 Kevin Mitchell is the President of the Professional Pricing Society (PPS). He is the publisher of a quarterly journal on professional pricing, which is primarily academic research. He also publishes a monthly newsletter, called the Pricing Advisor, which follows trends in pricing. He has spoken all over the world on pricing, including North America, South America, Europe, and […]

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]]> https://artofvalue.com/can-learn-price/feed/ 1 Kevin Mitchell is the President of the Professional Pricing Society (PPS). He is the publisher of a quarterly journal on professional pricing, which is primarily academic research. He also publishes a monthly newsletter, called the Pricing Advisor, Professional Pricing Society (PPS). He is the publisher of a quarterly journal on professional pricing, which is primarily academic research. He also publishes a monthly newsletter, called the Pricing Advisor, which follows trends in pricing. He has spoken all over the world on pricing, including North America, South America, Europe, and Asia.
Professional Pricing Society

* What is the most important thing you can share about pricing?

* Businesses worldwide understand that the best lever they have to increase their profits is pricing knowledge and management.
* Having great services and products that are well-promoted does not make a business profitable if they are priced wrong.
* A company's products and services need to provide great value to its customer base.
* Pricing allows you to be compensated fairly for the created value and permits you to reinvest in your company, community, and employees.
* Pricing is the best lever to improve a firm's profitability.
* A 1% increase in price can result in a 10% increase in the bottom line, as referenced in The Price Advantage.




* What is the Professional Pricing Society?

* It is the membership organization for pricing professionals and enthusiasts worldwide.
* It was founded in 1984 by a pricing professional, Eric Mitchell, Kevin's father.




* What does PPS offer for knowledge professionals?

* Some members have pricing in their title for an organization; others are sole proprietors, sales people, and marketers who are pricing thinkers.
* Resources are available to help measure how your company is performing as a pricing organization.
* There is a lot that happens in business that is not pricing, but involves pricing decisions.



Basic Pricing Concepts

* What are the three most important pricing concepts?

* Prices are stickier when they go up, rather than down.
* Discounts might be permanent in your customers' eyes.
* Your customers live in the same connectivity era that you do; they can research pricing too.
* The price you provide for a product/service is often the first indicator of quality for that offering.




* Does a commodity exist in professional services?

* There are certain individuals within the pricing discipline, like Ron Baker, who say there is no such thing as a true commodity.
* Think about the goods and services from the perspective of your customer.
* As an accountant, there is usually a reason you select by your customer.
* There is a value to being in business a while, in being close by, in being available to your customers.
* Downtime to the customer can be a very expensive consideration as well.




* Where is the opportunity to differentiate in professional services?

* Perceived commoditized services can offer different benefits:

* Number of years in business
* Referrals from others
* Professionalism surrounding the service
* Ease of use
* Flexibility


* Switching costs are also something to consider from the customer's perspective.
* Ask your customers what is valuable to them, “Help me help you.”
* The conversation can be very simple and very straightforward.
* Many business professionals think inward, rather than using soft-selling skills to think outward.
]]> Episodes Archives - Art Of Value full false 40:56 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Finding Your Sauce (and Value) with Cerrone & Urcioli – 055 https://artofvalue.com/finding-sauce-value/ https://artofvalue.com/finding-sauce-value/#respond Tue, 28 Jul 2015 12:00:42 +0000 http://artofvalue.com/?p=5479 Chris Cerrone & Laci Urcioli are the hosts of the Chris Cerrone Show, a podcast with 1.8 million downloads across 136 episodes. They are also marketing and business consultants, who hail from Vegas. Chris is a former skateboarder, and Laci a former circus performer. Know Your Value What is the most important thing you can share about […]

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]]> https://artofvalue.com/finding-sauce-value/feed/ 0 Chris Cerrone & Laci Urcioli are the hosts of the Chris Cerrone Show, a podcast with 1.8 million downloads across 136 episodes. They are also marketing and business consultants, who hail from Vegas. Chris is a former skateboarder, Chris Cerrone Show, a podcast with 1.8 million downloads across 136 episodes. They are also marketing and business consultants, who hail from Vegas. Chris is a former skateboarder, and Laci a former circus performer.
Know Your Value

* What is the most important thing you can share about pricing?

* Know your value.
* Your value has a direct effect on what you can charge.
* Know your customer and audience.
* For whom are you pricing your service?
* What is the value you bring to end game of your customer?
* Pricing appropriately is a key component to launching a business.
* You do not want to underprice your ability.
* Gut instinct is a key component in pricing.
* What have I done in my past that I am really good at, that I am so confident in, that I can take anywhere and get the job done flawlessly?
* If your skill set is hard to replace, it is the key to earning more money.




* What have you learned about pricing since you started the Cerrone Show?

* You have to ask a lot of questions.
* Let your potential customer tell you what they have and need.
* Create dynamic pricing to work within the budget of the customer.
* Price based on value when you are offering a course.
* Understand the price elasticity of the demographic you are targeting.
* When is it “uncomfortable” for your customer to open his wallet?
* Verizon is an example of a company who charges a premium price, while Cricket tailors to a different audience and charges less, despite running on the same equipment.
* If you have to increase your resources to handle a project, you need to take that into consideration when pricing.
* Price a product at a level that will help the most people and bring the most return to the business.



Pricing Challenges for the Cerrone Show

* What is one of the biggest pricing challenges you have overcome?

* There is an assumption that because they are a white-label boutique agency of only two people that customers think they should not be paid as much as a large agency.
* They must overcome self-belief, but more so, the customer's perception.
* Their service is priced based on what they will do for the business, not based on who they have to pay or what their overhead is.
* If they are that efficient on how they operate their own business, imagine what they could do for the customer's business.
* They come up with pricing strategies behind the scenes and have human conversations about it, which can include some self-doubt.
* The choice that you make after having any self-doubting thoughts is what defines you.




* Can you share an example of working through your pricing doubts?

* Laci was underpricing her services because she was passionate about the customer's business and did not feel she was worth more.
* She did not realize her customer would have been willing to pay five times that amount if she had just asked.
* Once Chris got involved on with Laci and the customer for a larger project, they had to have very tough conversations with each other, about how to talk about the higher price with the customer.
* They were able to negotiate a price with which they and the customer both were very happy.
* Do not get discouraged if you do not get what you ask.
* Laci said she did not know if they could get the price. Chris was very straightforward with her about the value of the difference they would be able to make.
* Pricing requires conversation internally before...]]> Episodes Archives - Art Of Value full false 51:17 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Story of My Pricing Journey with Carrie Dils – 054 https://artofvalue.com/story-pricing-journey/ https://artofvalue.com/story-pricing-journey/#respond Tue, 21 Jul 2015 12:00:17 +0000 http://artofvalue.com/?p=5333 Carrie Dils is a WordPress developer and business consultant, a recommended Genesis developer by StudioPress, and an author of WordPress training courses at Lynda.com. Personally, she is a lover of rescue dogs and a craft beer connoisseur. Getting Started in Web Development What is the most important thing you can share about pricing? Every time she […]

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]]> https://artofvalue.com/story-pricing-journey/feed/ 0 Carrie Dils is a WordPress developer and business consultant, a recommended Genesis developer by StudioPress, and an author of WordPress training courses at Lynda.com. Personally, she is a lover of rescue dogs and a craft beer connoisseur. Genesis developer by StudioPress, and an author of WordPress training courses at Lynda.com. Personally, she is a lover of rescue dogs and a craft beer connoisseur.
Getting Started in Web Development

* What is the most important thing you can share about pricing?

* Every time she has raised her rates, she has increased the quality of her customers.
* By charging higher rates, she attracts a different kind of customer – one who values her as a consultant, not just a technologist.
* People who are at lower price points tend to not value the business side.
* They are not looking for a business solution; they are looking for the lowest price to execute a specific task.




* Can an NDA have a negative impact on the customer relationship?

* An NDA can start off with an adversarial relationship with the customer.
* Requiring an NDA demonstrates a lack of trust.
* You cannot create high value if there is not trust.
* The spirit behind asking for an upfront NDA is the equivalent to asking for a prenup before you go on a first date.




* How did you get started as a web developer?

* After college, she only knew graphic design and a little HTML.
* She was a freelancer and worked on banner ads for KLTY in the late 90s.
* Carrie did not like cubicles and left the corporate world behind, thinking she would start her own coffee shop.
* She learned she did not want to open a coffee shop after working as a barista at Starbucks.
* From there, she started freelancing as a web developer.



Pricing for the Web Developer

* How did you price projects when you were getting started?

* Initially, she was at a loss for how to charge.
* She threw a number out there – $50/hour.
* If no one tells you that you are too expensive, then you are not charging enough.
* She pushed her hourly rate upward until people said she was too expensive.
* The frustration of running out of time inspired her to search for another possibility rather than billing by the hour.
* She moved to a flat-fee quote.
* She is dipping her toes into the area of value pricing.




* What were the advantages and disadvantages of quoting a fixed price?

* “Scope” can be a scary word.
* If you guess what a project will take and quote based on that, without digging into the scope, you can lose.
* When you scope a project up front (discovery, road mapping, needs analysis), your customer can invest at a lower dollar amount.
* At the end, the customer gets a document of what the core issues are and what the goals/outcomes need to be.
* The document is educational and enlightening to the customer.
* There is a comfort factor by starting that way so that the customer trusts you.




* What is the difference between recommending a solution vs. technology?

* If you are talking about what to develop, they will tend to go toward technology.
* If you are talking about why, they will tend to go toward a solution.
* Curtis McCale shared his initial prospect email with Carrie, that has three simple questions:

* Why now?
* What does success look like?
* What is your budget?


* Those three questions allow your customer to think more critically about his project.
* From a comfort standpoint,]]> Episodes Archives - Art Of Value full false 49:41 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Role of Value in Sales with Donald Kelly – 053 https://artofvalue.com/role-value-sales/ https://artofvalue.com/role-value-sales/#respond Tue, 07 Jul 2015 12:00:29 +0000 http://artofvalue.com/?p=5322 Donald Kelly is the host of The Sales Evangelist podcast and an award-winning speaker. His podcast has been mentioned in Entrepreneur Magazine, The Huffington Post and on Yahoo Finance. He's a sales trainer and mentor, and a self-admitted addict to staycations. Kirk was a guest on Episode 32 of The Sales Evangelist. Getting Started in Sales What […]

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]]> https://artofvalue.com/role-value-sales/feed/ 0 Donald Kelly is the host of The Sales Evangelist podcast and an award-winning speaker. His podcast has been mentioned in Entrepreneur Magazine, The Huffington Post and on Yahoo Finance. He's a sales trainer and mentor, The Sales Evangelist podcast and an award-winning speaker. His podcast has been mentioned in Entrepreneur Magazine, The Huffington Post and on Yahoo Finance. He's a sales trainer and mentor, and a self-admitted addict to staycations. Kirk was a guest on Episode 32 of The Sales Evangelist.
Getting Started in Sales

* What is the most important thing you can share about pricing?

* Price is the reward for the value that people see.
* People can be afraid of having a conversation about money.
* Price is a demonstration of appreciation of perceived value.
* Discussing price can be challenging to salespeople because they think the price is going to drive the customer away.
* All customers know they have to pay for what they are going buy.
* The fear is head trash, which limits the ability to talk about price.
* If you do not have confidence in your product and service, you will be afraid to discuss price.




* How did you discover your passion for sales as a profession?

* When Donald was a kid, his dad had the entrepreneurial spirit and was successful.
* Donald started selling cookies in the front yard or mangos he had picked.
* When he came into professional selling, post-college, he had to learn how to sell in the B2B world.
* Once he realized there was a process to follow, he decided to share it via The Sales Evangelist.
* If you have the desire, he can teach you to sell.
* The entrepreneurial spirit can be hereditary.




* What is the most important thing to succeed in sales?

* Episode 133 discussed the one thing necessary to succeed: having measurable goals.
* The idea of the episode is to quantify your performance.
* You need to be able to measure what you are doing by being methodical.
* Key indicators is an important way to measure your performance.
* Once a salesperson gets a taste of commission, they can sometimes get complacent.
* Fundamentals of a sales process:

* Understand your key indicators.
* Generate interest.
* The meat of the process is being able to ask appropriate questions of the customer to understand their problems and challenges.
* You have to present the information with options.
* Close the deal.
* Exchange the value.


* When you ask the appropriate questions, you might learn that the customer is not a fit.



Selling Value by Asking Questions

* What are some of your favorite questions to ask in the sales process?

* Why is this an important thing now?
* What have you done to remedy this situation before?
* What is your process like when you have made purchases like this before?
* If you do not do something, what will be the effect on the organization?
* Getting to the truth can sometimes be five layers down – keep asking why.
* The goal is to get to the right decision for the specific customer.
* You have to be able to probe, and make it feel like a comfortable, natural conversation.
* Jeb Blount's book, People Buy You, is about selling on a human level.




* Do you recommend always selling on value?

* Value is in every sale.
* Your product might make it harder or easier.
* If you believe you are selling a commodity, you will act like you are.]]> Episodes Archives - Art Of Value full false 44:50 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Visual, Verbal and Value Identity with Mike Kim – 052 https://artofvalue.com/visual-verbal-value-identity/ https://artofvalue.com/visual-verbal-value-identity/#respond Tue, 30 Jun 2015 12:00:59 +0000 http://artofvalue.com/?p=5292 Mike Kim is a marketing consultant that specializes in creating personal brands. He is also the chief marketing officer for an education company in New Jersey. He is the host of the Brand You! podcast, and a speaker at Podcast Movement this summer in Fort Worth, Texas. Positioning Yourself with Price What is the most important thing you can share […]

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]]> https://artofvalue.com/visual-verbal-value-identity/feed/ 0 Mike Kim is a marketing consultant that specializes in creating personal brands. He is also the chief marketing officer for an education company in New Jersey. He is the host of the Brand You! podcast, and a speaker at Podcast Movement this summer in F... Brand You! podcast, and a speaker at Podcast Movement this summer in Fort Worth, Texas.
Positioning Yourself with Price

* What is the most important thing you can share about pricing?

* You can probably charge higher than you think you are worth.
* The mental block is in your mind, not others'.
* Charge a little bit beyond the price with which you are comfortable.
* It will increase your confidence in the value you bring to people.
* Price it normally, and increase it by 10-20%, and see what happens.
* Especially for projects that you aren't that excited about, getting paid more can help you push forward better.
* The more you hate the work, the more you should be compensated.




* What is the relationship between branding and pricing?

* It is about positioning.
* The more something costs, the more value we assign to it.
* You can be a premium brand or a bargain-basement brand.
* Your approach will vary greatly, depending on the type.
* If you are a premium brand, scarcity is your friend.
* If you are bargain-basement, you have to be able to increase sales through volume.
* As a service provider, you can't create volume.
* Consider a four-quadrant graph:

* Quadrant One would be high-paying, high-influence customers in the upper left.
* High-influence, lower-paying customers, go Quadrant Two in the upper right.
* Quadrant Three is lower left: High paying, low-influence customers.
* Lower right is Quadrant Four with low-paying, low-influence customers.
* You want to reach them via different mediums or offerings.


* Do not do one of these quadrants at the expense of the other.
* Use them all together to build your brand.
* Create services for the quadrants and price accordingly.
* If you focus on one quadrant at the expense of the others, you leave money on the table.
* Copywriting is one of the easiest ways to generate income at a low cost.



Your Visual, Verbal, and Value Identity

* What are the three identities that shape your brand?

* Brands have a visual, verbal and value identity.
* Good verbal identities are very intentional – Eat24 is a good example.
* The visual identity is a website but includes the verbal aspect of it.
* Apple is a good example of how the verbal backs up the visual.
* All three of the identities have to work together to be cohesive.
* Business owners struggle when they try to shape their brand by themselves.
* It is very difficult to market yourself.




* What was your first exposure to value pricing?

* The first time that Mike read about consulting, it had value pricing woven into it – Getting Started in Consulting by Alan Weiss.
* Mike did value pricing from Day One, except for hourly advice phone calls.
* To help someone switch over from hourly billing to value pricing, create a line item on your invoice that justifies the “discount” you are providing.
* Even your invoice is a marketing tool.
* Include a price of $0 for something that you added in so that the customer understands the value you created.




* What have you learned about pricing as a Chief Marketing Officer?

]]> Episodes Archives - Art Of Value full false 52:21 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Value of the Customer’s Customer with Wes Higbee – 051 https://artofvalue.com/value-customers-customer/ https://artofvalue.com/value-customers-customer/#respond Tue, 23 Jun 2015 12:00:51 +0000 http://artofvalue.com/?p=5280 Wes Higbee was a guest on a previous episode of the Art of Value Show. His latest book is about value and software, Commitment to Value: How to Make Technical Projects Worthwhile. He is also the owner and chief consultant at Full City Technology. Wes focuses on helping teams learn to develop from a value perspective. The Path to […]

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]]> https://artofvalue.com/value-customers-customer/feed/ 0 Wes Higbee was a guest on a previous episode of the Art of Value Show. His latest book is about value and software, Commitment to Value: How to Make Technical Projects Worthwhile. He is also the owner and chief consultant at Full City Technology. previous episode of the Art of Value Show. His latest book is about value and software, Commitment to Value: How to Make Technical Projects Worthwhile. He is also the owner and chief consultant at Full City Technology. Wes focuses on helping teams learn to develop from a value perspective.
The Path to Value

* What is the most important thing you can share about pricing?

* Be deliberate about the type of customer relationship you want to have.
* Do not assume the type of relationship you want will happen by default.
* Use pricing to make it happen.




* What is the “path” and why is it important? (Chapter 1)

* This chapter was an explanation of the Wes' journey.
* Most people are path “takers”–walking a path that someone else has asked us to walk, not even sure of the destination.
* The metaphor explains the difference between effort (path) and results (destination).
* Understanding the destination is the most important part of the path.
* If you want long-term relationships, you have to focus on what is a sustainable relationship.
* You need to do what is net win-win for everyone.
* Figuring out what you want to do every two weeks (agile development) is dangerous.
* You need to have a guiding purpose.
* It is not second nature for developers to take the time to determine the purpose and then ensure that it has value.




* What is “impact” and why is it more important? (Chapter 2)

* Walk the path in the direction of having an impact.
* Have the skill to achieve the impact rather than just running down the path quickly.
* Run toward the impact but crawl down the path.
* You must first be deliberate about how you want to live your life and the type of work you want to do.



Gatekeeping Is Not Effective

* Why is not always saying “yes” a better approach?

* You need to find incentives to ask why and say no.
* You can price in a way that it is not in your interest to say yes to everything.
* Think about asking why, rather than asking how.
* The Answer to How is Yes, by Peter Block, is a whole different take on how you evaluate something.
* If you do not step back and take on more responsibilities and risk, you cannot leverage your intuition.
* It challenges the maxim that the customer is always right.
* Your customer has to explain what they need to help you help them.
* Courage is what you need because the customer probably wants help more than they care about being right.
* You can sometimes help your customers, even when it is their fault, by not assessing blame.
* The customer should be happy, not necessarily right.




* What is the problem with “mediation” in communication? (Chapter 4)

* Think of a game of telephone to see what message comes out the other end.
* When communication passes between people, things change.
* Even in deep conversations, it can be easy to jump to the conclusion that what you wanted to say was conveyed.
* There are filters on both ends, even in direct communication.
* Indirect communication can be even more biased, filtered and distorted.
* Important conversations should not rely on an intermediary to get the point across.
* It is neither effective nor efficient to exclude decision makers in purchasing decisions and discussions.
]]> Episodes Archives - Art Of Value full false 52:44 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Which One? or Will I? with Mark Stiving – 050 https://artofvalue.com/one-will/ https://artofvalue.com/one-will/#comments Tue, 16 Jun 2015 12:00:21 +0000 http://artofvalue.com/?p=5248 Mark Stiving has a Ph.D. in Pricing from UC Berkeley. He is the author of Impact Pricing and writes a popular blog PragmaticPricing.com. He is consultant and teacher at Pragmatic Marketing, which helps product managers at Fortune 1000 companies define, build and market great products. What Is the Customer Willing to Pay? What is the […]

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]]> https://artofvalue.com/one-will/feed/ 6 Mark Stiving has a Ph.D. in Pricing from UC Berkeley. He is the author of Impact Pricing and writes a popular blog PragmaticPricing.com. He is consultant and teacher at Pragmatic Marketing, which helps product managers at Fortune 1000 companies define,... Impact Pricing and writes a popular blog PragmaticPricing.com. He is consultant and teacher at Pragmatic Marketing, which helps product managers at Fortune 1000 companies define, build and market great products.
What Is the Customer Willing to Pay?

* What is the most important thing you can share about pricing?

* Charge what the customer is willing to pay.
* It has nothing to do with “cost-plus”.
* Service providers assume they have a cost associated with their time, which is not true.
* Understand the decision your customer is making right before he buys your product.

* Am I buying from you or your competition? (Which one?)
* Will I buy from you or not? (Will I?)


* When you have competition, you have price relative to the value you offer and the value from other providers.
* Customers usually are not price sensitive; providers often underestimate their value.
* The easy way to tell is, once you have won or lost a deal, ask the customer who else they considered.
* Ask it enough and you will start to be able to tell which type of decision the customer is making.
* With a “will I” product, create something unique (no competition), and you can capture more value with the price.
* How do you differentiate yourself so well that your customers do not even look at someone else?




* What is a telescoping focus on pricing?

* At some times, you must have a narrow focus on a specific transaction.
* At the same time, you need to have a broad focus on how you are building and pricing your product portfolio so that you are capturing the value you create.
* A service professional can take a broader focus by reading Mark's blog and book.
* As you see and discover different pricing models, ask if they can apply to your world.
* A company like Netflix makes you wonder if you can do subscription pricing and how?
* Experiment with the ideas you discover and then once you get comfortable, try it.
* Slack charges based on how value is delivered to its customers.
* Companies giving money back to customers will not become a trend.



It is a socialist idea that making profits is a vice; I consider the real vice is making losses.
– Mark Stiving

* What is the meaning of this quote by Winston Churchill in Chapter 1?

* A lot of times, people feel uncomfortable making profits, even though that is the whole point of a business.
* If your goal is not to make a profit, then what is it?
* Based on a corporate goal, you still might be able to use pricing to help with it.
* Chick-Fil-A keeps pricing low on purpose as part of a community outreach goal.
* You have to make a profit to reach toward a goal, even if you are a non-profit.
* Profit allows you to achieve your purpose.



Pricing Fundamentals

* How do you determine when is the right time to discuss price with a customer?

* It depends on what your customer's buying process is.
* If a customer is looking for a price and cannot find it, they might go to a competitor.
* If you provide a price too early, you might lose a customer because he doesn't understand the value you provide.
* Understand the best time to provide a price based on your type of customer.
* When someone asks about price, the answer is usually a big range until you understand more about...]]> Episodes Archives - Art Of Value full false 46:45 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Real Goal of Value Pricing with Ben Furfie – 049 https://artofvalue.com/real-goal-value-pricing/ https://artofvalue.com/real-goal-value-pricing/#respond Tue, 09 Jun 2015 12:00:56 +0000 http://artofvalue.com/?p=5205 Ben Furfie is a web designer who specializes in front-end development. Business wise, he focuses on lead generation for small to medium size businesses. Technology wise, he uses WordPress and the Genesis framework. He started out as a writer and then began to pick up the technology while working on magazine projects. He recently spoke […]

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]]> https://artofvalue.com/real-goal-value-pricing/feed/ 0 Ben Furfie is a web designer who specializes in front-end development. Business wise, he focuses on lead generation for small to medium size businesses. Technology wise, he uses WordPress and the Genesis framework. First Exposure to Value Pricing

* What is the most important thing you can share about pricing?

* There has been an explosion of people becoming interested in value pricing, especially in the WordPress space.
* They are misinterpreting the purpose of value pricing as a way to increase their prices.
* The real purpose of value pricing is that it enables you to match your price with what the customer can afford and where they see the value of the investment.
* In the first 3-6 months, there is a significant jump in what you charge.




* What was your first exposure to value pricing?

* His sales director was taking a value price approach, but he did not realize it initially.
* He did not understand it as “value pricing”, just as a good way to price services.
* He realized what it was called in August 2014 when he listened to the Art of Value Show per a recommendation from Carrie Dils.
* He knew the concepts and not to use hourly billing, but he was not using real value pricing concepts.
* He started with project-based fixed pricing.




* Why did you decide to implement value pricing?

* He recognized it as the model his former boss had been using.
* That company had won a large project on the basis of a value-based presentation.
* The key point of the proposal was to reduce the cost of visas, staff, accommodations, and food.
* They replaced onsite IT staff with remote management with the same benefits.
* It improved the quality and reduced costs.



The Rewards of Value Pricing

* What have been some of the rewards from value pricing?

* The first customer he value-priced wanted a new website.
* He quoted the site and the customer another provider whose price was half of Ben's.
* The customer called back after their website was hacked.
* He learned about their pain points and why they wanted the site to get an idea of the value.
* He tripled his initial price, and the customer accepted it because the customer saw the website as a way to create leads instead of a cost.
* He explained that it was not the price, but a percentage of the return they were expected to receive.
* To get results, they needed to invest.




* What has been the range of customer reactions to value pricing?

* He has won deals he did not think he would.
* He has left money on the table.
* He has lost deals when the price was more than the competition.
* Value pricing should be bound by the value of the results.
* When he reduced the price to try to win a deal, he still did not win the project.
* He learned from the mistake by analyzing aftward, discussed with his girlfriend and colleagues and realized the price was out of sync with the competition, despite proving the value.




* What are some of the factors you consider when setting a price?

* Ask to who else are they are speaking.
* Some will answer; others will not.
* If you can understand your competitors, it will help with the pricing.
* If he learns there are RFPs being put out, he will not submit a bid.
* Make sure you are talking to the decision makers and know who has sign-off on the project.
* Going through a purchasing department can kill a project.]]> Episodes Archives - Art Of Value full false 53:15 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Funniest Thing About Value Pricing with Greg Kyte – 048 https://artofvalue.com/funniest-thing-value-pricing/ https://artofvalue.com/funniest-thing-value-pricing/#respond Tue, 02 Jun 2015 12:00:56 +0000 http://artofvalue.com/?p=5188 Greg Kyte is a CPA and comedian. He teaches ethics and fraud courses for accountants with a comedic edge at ComedyCPE.com. He is also the G. Robert Newhart Non-Value-Added Fellow at Versage Institute. The Real Context of  Value What is the most important thing you can share about pricing? You need to price your services like you […]

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]]> https://artofvalue.com/funniest-thing-value-pricing/feed/ 0 Greg Kyte is a CPA and comedian. He teaches ethics and fraud courses for accountants with a comedic edge at ComedyCPE.com. He is also the G. Robert Newhart Non-Value-Added Fellow at Versage Institute. The Real Context of  Value What is the most importa... ComedyCPE.com. He is also the G. Robert Newhart Non-Value-Added Fellow at Versage Institute.
The Real Context of  Value

* What is the most important thing you can share about pricing?

* You need to price your services like you know magic.
* The Labor Theory of Value says that the value of something is equal to the materials and labor it takes to create it. It is a fallacy.
* Dan Ariely, the author of Predictably Irrational, says you have to realize that people will determine the value of your product/service by inserting their context.
* All value is subjective.
* When people have no context for the work you are doing, they will create a context for themselves.
* You must talk to your customer upfront about what they need/want from a transaction before doing the work.
* Collect the money upfront.
* People are afraid of talking to their customers.




* What is the funniest thing about value pricing?

* When accountants talk to Greg about upfront payment plans, they worry about negative accounts receivable.
* According to accounting theory, it is unearned revenue.




* What is the funniest thing about hourly billing?

* As an accountant in a firm, when you have to ask yourself, “Do I stop my time billing software when I have to go to the restroom?”
* It raises an ethical question about going pee-pee.
* What if it your bathroom visit was longer than 6 minutes?



Value Pricing in Accounting

* What is the state of value pricing in the accounting profession?

* By and large, the average person in the accounting profession would say, “That seems like a great thing, but we cannot do it.”
* The billable hour has too much inertia.
* Joe Manzelli was a partner in a firm and was left alone to do his value pricing “thing”.
* His realization rates were off the charts compared to his colleagues.
* Ask your customers if they like how you are billing.
* Do some experiments; do not be a weenie!
* Some people are angry about value pricing and seem to have a weird idea of what it is.
* The fear of people “shopping” accountants is one of the arguments against value pricing.
* Accountants are not selling a commodity.
* Everyone hates the billable hour.
* The customer has no idea what the bill is going to be.
* The firm is “billing and ducking.”
* The employee feels his subjective well-being is being torn down.




* What was your first exposure to value pricing?

* In a previous life, Greg was a middle school math teacher.
* He knew he was 10 years behind the other CPAs.
* He was working hard to catch up with everyone.
* He read Pricing on Purpose by Ron Baker in the Journal of Accountancy.
* Greg was shocked to learn it was even a possibility.
* He hated the environment in which he worked.




* What is the funniest thing the IRS did for the 2014 tax year?

* They were dealing with budget cuts, and the Affordable Care Act added workload.
]]> Episodes Archives - Art Of Value full false 50:00 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Customer’s Perception of Value with Jason Cohen – 047 https://artofvalue.com/customers-perception-value/ https://artofvalue.com/customers-perception-value/#comments Tue, 26 May 2015 12:00:46 +0000 http://artofvalue.com/?p=5161 Jason Cohen is the founder and CTO of WP Engine. He started the company in 2010, and it has grown to 270 employees in four locations. Over his career, he has started four different companies, both bootstrapped and venture-backed. He also has a start-up incubator in Austin called the Capital Factory. How to Price Intangible […]

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]]> https://artofvalue.com/customers-perception-value/feed/ 1 Jason Cohen is the founder and CTO of WP Engine. He started the company in 2010, and it has grown to 270 employees in four locations. Over his career, he has started four different companies, both bootstrapped and venture-backed. WP Engine. He started the company in 2010, and it has grown to 270 employees in four locations. Over his career, he has started four different companies, both bootstrapped and venture-backed. He also has a start-up incubator in Austin called the Capital Factory.
How to Price Intangible Value

* What is the most important thing you can share about pricing?

* Everyone says “charge more” and that is true.
* How can I deliver 10 times the amount of value I am creating now?
* What if I forced you to multiply your price by 10, what would you have to do?
* If you do those things, how much could you charge?
* 10X is a common phrase and magic number to measure change.
* If you think big and do not hit it, that is fine because you are stretching your thoughts.




* How can someone place a value on something that is intangible?

* You can put a frame around intangible value.
* Take the customer feedback, print it out, and literally frame it and put it on the wall.
* Be an ally and partner, rather than another “vendor your customer has to deal with.”
* Not all important things are numbers. You can still quantify it, even if it is a paragraph.
* You have to earn trust and referrals.

* Credibility – The first step is to establish that you deserve to sell the service.
* Respect – Do you have insights and is your opinion interesting? Customer testimonials can also help.
* Trust – You must earn the trust by delivering the service consistently and doing what you say you are going to do.
* Advocacy – All of the above plus your customer willing to put their reputation on the line to refer you.






* What is your opinion of the current trend in value pricing?

* As a business owner, you should be interested in what is best to operate your business, both on how much profit you earn and how you serve your customer.
* You should be less interested in what others say.
* Just because it is a trend, does not mean you need to agree, but it is useful to study and think.
* Ideally you would charge every customer the most they would be willing to pay and not take any customer that will not pay more than your personal minimum.
* If you do value pricing, you can justify the price better than cost-plus.
* You have to ensure that the price will cover your costs.
* Because you are an expert, it is cheaper or easier for you to do, but not your customer.
* The expertise differential is Economics 101.
* The smaller you are, the more you can run experiments.
* Value pricing is talking about how much value you can deliver to the customer regardless of the cost.
* Price to a budget or a certain threshold amount (for the customer).
* Some customers have a particular dollar amount that they cannot exceed.
* The budget may be more important than the value created by the product.



What Does the Customer Value?

* When is the right time to discuss price or budget with a customer?

* Can the customer really think about it in the terms of the value they are getting for the product?
* Budget is one of the things that forces the issue – it does not matter what they get for the product, they cannot spend more than X.
* How is the customer valuing the solution?
* An ROI might not be the right way to sell.
* In a large organization, the individual, who is your advocate, is putting their reputation on the line when selling in your service or product.
* From a business perspective, you can look at irrational decisions as a way you can pro...]]> Episodes Archives - Art Of Value full false 49:14 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Creating Value the Disney Way with Lee Cockerell – 046 https://artofvalue.com/creating-value-disney-way/ https://artofvalue.com/creating-value-disney-way/#respond Tue, 19 May 2015 12:00:01 +0000 http://artofvalue.com/?p=5083 Lee Cockerell is the former Executive Vice President, Operations of Walt Disney World Resort. He led a team of 40,000 cast members and managed 20 resort hotels, four theme parks, and two water parks. He is the author of three books: Creating Magic, The Customer Rules, and Time Management Magic. He also has a podcast called, […]

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]]> https://artofvalue.com/creating-value-disney-way/feed/ 0 Lee Cockerell is the former Executive Vice President, Operations of Walt Disney World Resort. He led a team of 40,000 cast members and managed 20 resort hotels, four theme parks, and two water parks. He is the author of three books: Creating Magic, Walt Disney World Resort. He led a team of 40,000 cast members and managed 20 resort hotels, four theme parks, and two water parks. He is the author of three books: Creating Magic, The Customer Rules, and Time Management Magic. He also has a podcast called, Creating Disney Magic with Lee Cockerell, hosted by Jody Maberry.
Talking with Customers

* What is the most important thing you can share about pricing?

* Pricing is truly about value.
* It's not the burger, it's how great is the burger.
* Quality wins out.
* What can I add to make me worth more and have the customer consider me an investment, rather than a cost?
* Lee helps people figure out how to pay for him.
* Things like the exchange rate can affect the price to the customer.
* Be flexible with non-profits and exchange rates.
* If you do the right thing, better things will happen in the future.
* Do not be greedy.




* How does Disney decide how to price?

* Research how customers spend their entertainment dollars.
* Interview two million customers per year.
* Give a good experience so they will come back.
* Movies and ski lift prices are discretionary entertainment spending and is competition to Disney.
* Limit the number of people in the park per day so that everyone can see multiple attractions.
* People with iPads are talking to the customers everywhere in the park – food lines, ride lines, airport, hotel check-in.
* Disney thinks about things like the single moms, children with special needs, and dietary considerations when creating a package.
* Treat people like individuals to offer huge value.




* Why did Disney lower its prices during the 2008 recession?

* People were not going on vacation during that period.
* Even employed people were scared.
* For $1200, a family of 4 could come for 4-5 days.
* Children ate free.
* The overhead is big, and the parks needed people to keep coming.
* The margin was affected, but Disney was able to keep its employees and attendance at the same rate.
* The experience was not affected.



Time Management and Value

* What advice do you have regarding time management and value?

* The number one problem most people have is time management.
* Where you spend your time is how your life will turn out.
* You should be aware of the top three places you will spend your time every day before your day begins.
* Taking care of yourself is important as you cannot help others if you are not healthy.
* Family is next. If you do not have your family, the money does not matter.
* Business and finance should be the third priority.
* You can then plan what you want to accomplish for each area.
* Have a system for your life and be very intentional about it.
* Raise your expectations – be clearer.




* What is the most important mistake a business can make with pricing?

* Businesses do not think about all the value they can add.
* Many companies under-price their products.
* The ones who are pricing too high are not adding enough value.
]]> Episodes Archives - Art Of Value full false 49:22 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Clarity, Competence and Confidence with Kary Oberbrunner – 045 https://artofvalue.com/clarity-competence-confidence/ https://artofvalue.com/clarity-competence-confidence/#respond Tue, 12 May 2015 12:00:22 +0000 http://artofvalue.com/?p=5036 Kary Oberbrunner left his day job to pursue his dream job. From that experience, he wrote his sixth book, Day Job to Dream Job. Because he has written six books, he now coaches authors through a program called Author Academy Elite. His next event, Escaping Shawshank, will be in August 2015 with Dan Miller. The Three […]

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]]> https://artofvalue.com/clarity-competence-confidence/feed/ 0 Kary Oberbrunner left his day job to pursue his dream job. From that experience, he wrote his sixth book, Day Job to Dream Job. Because he has written six books, he now coaches authors through a program called Author Academy Elite. His next event, Day Job to Dream Job. Because he has written six books, he now coaches authors through a program called Author Academy Elite. His next event, Escaping Shawshank, will be in August 2015 with Dan Miller.
The Three Cs

* What is the most important thing you can share about pricing?

* Pricing is a reflection of self-image.
* You will never outperform your self-image.
* You will never outprice your self-image.
* If you see yourself as a “2”, you will not be comfortable charging higher prices.
* Self-image is like a thermostat.
* You will self-sabotage because you are not comfortable charging higher prices.




* What is clarity, the first “C”?

* Clarity is essential.
* Clarity knows where you are going, what you value and represent.
* Clarity is the accurate vision of yourself and your business.
* Most customers want to see if you have clarity before they are willing to invest in you.
* A customer wants to trust where you will take him.
* Clarity is the outward reflection of the inner value.
* Confidence comes when the external reflects the internal.
* “What makes you think you are the next American Idol?” – Simon Cowell
* Income follows as a result of clarity, competence, confidence, influence and impact – in that order.




* What are competence and confidence (second and third Cs)?

* Competence is the skill set that you achieve and bring to the relationship.
* If you are competent, you have a mastery of a skill set.
* If you have clarity and competence, you can still lack confidence.
* False humility is when you lack confidence.
* People will not buy if you do not have confidence.
* Drive-through drill:

* Think about yourself as a drive-through restaurant.
* Someone asks what you serve.
* You must quickly answer because confusion repels and clarity attracts.
* Have a VPS (value proposition statement) ready.
* As an example, Kary “ignites souls“.


* After you have clarity, competence and confidence, you can gain influence, impact and then income.
* Most people do not know what they can give others because they are too good at it.
* When you share what is in your cup, you can have influence and make an impact.




* What is the relationship between the three Cs?

* On the return from a conference, Kary boarded a plane and sat next to a woman.
* He focused on a project as he had a deadline.
* The woman engaged him later in the flight, and they discussed writing books.
* He asked how she was stuck, and he worked with her for the last hour of the trip.
* Kary helped flesh out her book and did not charge her or sell her.
* She thanked him and asked for his card.
* She emailed him and at that point he offered to take the coaching to the next level.
* She sent him $5000 without being invoiced or priced.
* Jimmy Dean Sausage Strategy – give people a taste and work from an abundance perspective.



Taking Action

* Why is the language we use important?

* “The early bird gets the worm” is a story of scarcity.
* There are a lot of worms out there.
* You can share your wisdom in a collaborative way.
* Thanking someone for their time is a poor use of language.
* The result is worthwhile, not the time.




]]> Episodes Archives - Art Of Value full false 52:12 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing A Book Starts the Relationship with David Hancock – 044 https://artofvalue.com/book-starts-relationship/ https://artofvalue.com/book-starts-relationship/#respond Tue, 05 May 2015 12:00:40 +0000 http://artofvalue.com/?p=4963 David Hancock is the founder and CEO of Morgan James Publishing. He has written or co-written 12 books, including Guerrilla Marketing for Writers, The Entrepreneurial Author, and Performance Driven Thinking. NASDAQ recognizes David as one of the premier business leaders in the publishing industry. Pricing in Book Publishing What is the most important thing you can […]

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]]> https://artofvalue.com/book-starts-relationship/feed/ 0 David Hancock is the founder and CEO of Morgan James Publishing. He has written or co-written 12 books, including Guerrilla Marketing for Writers, The Entrepreneurial Author, and Performance Driven Thinking. Morgan James Publishing. He has written or co-written 12 books, including Guerrilla Marketing for Writers, The Entrepreneurial Author, and Performance Driven Thinking. NASDAQ recognizes David as one of the premier business leaders in the publishing industry.
Pricing in Book Publishing

* What is the most important thing you can share about pricing?

* As entrepreneurs, we sometimes try to overprice things.
* Charge as much as you can without running them off.
* Your customers want to pay as little as possible without running you off.
* Tap into your guerrilla resources by doing some investigating into similar companies with similar resources providing similar products.
* Remember that you are starting a relationship and the life-long contact with that buyer is where the real value comes.
* An individual with authority, credibility and a book can charge more for speaking engagements than someone without one.
* Ignore royalties and focus on the power of the book and your royalties will grow.
* You will get:

* 20-30% more if you are an author.
* 30-50% more as a best-selling author.
* 75%+ more as a New York Times‘ Best Selling author.






* What is the state of pricing in book publishing?

* Bookstore buyers are begging for cheaper, smaller, more affordable and easier to ship books.
* The trend is 200-page paperbacks at $17 range from a non-fiction perspective.
* Readers are overwhelmed with information and need to be able to skim a book to make a buying decision.
* If you buy a book on Amazon, you can download the e-book for free immediately.
* 15-25 reviews can increase conversion rate by over 30%.



Publishing Strategies

* What are some current trends in self-publishing?

* Self-publishing is much better than not publishing.
* Superior content is required since you will be judged more harshly.
* Make sure to do your research on self-publishing companies.
* If you have design flair, IngramSpark, Amazon's CreateSpace or FastPencil all give you an opportunity to do more of it yourself.
*  Media will be the ones most affected by who publishes, not the readers as much.




* What is entrepreneurial publishing?

* With self-publishing, you make all the decisions whether you are qualified to do it or not.
* Traditional publishing companies make all the decisions, often without any input from the author.
* Entrepreneurial publishing is a mix of the two, working with the author to make decisions.
* They understand that the entrepreneur has other things in his business with the book.
* The author gets to make decisions and have input, but they still get the backing of a well-known publisher.
* Traditional publishers might look at a self-published author and pass on your book if the previous sales were not high enough.
* David's company, though, finds it a plus that they were published.




* Is giving away your book a good promotional strategy?

* Guerillas love to give value.
* Promotion of a free book is a good thing to get your name o...]]> Episodes Archives - Art Of Value full false 47:24 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Value of Story and Experience with Jody Maberry – 043 https://artofvalue.com/value-story-experience/ https://artofvalue.com/value-story-experience/#respond Tue, 28 Apr 2015 12:00:27 +0000 http://artofvalue.com/?p=4912 Jody Maberry is a former park ranger who now specializes in creating story and experience for customers. In other words, he's a marketing consultant and copywriter. He got his MBA from the Jack Welch Management Institute at Strayer University. He spends his free time hiking in the great northwest of United States and Canada. The […]

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]]> https://artofvalue.com/value-story-experience/feed/ 0 Jody Maberry is a former park ranger who now specializes in creating story and experience for customers. In other words, he's a marketing consultant and copywriter. He got his MBA from the Jack Welch Management Institute at Strayer University. Jack Welch Management Institute at Strayer University. He spends his free time hiking in the great northwest of United States and Canada.
The Importance of Story and Experience

* What is the most important thing you can share about pricing?

* You are worth more than you think you are.
* It is good for you and your customer that you charge more.
* If you feel you are getting underpaid for a job, you will not give the value you should to the customer.
* If you are getting paid what you think you are worth, you will work your tail off for the customer.




* Why is story important to a business or entrepreneur?

* Foremost, people will do business with a company when they want to be part of its story.
* A story helps a customer connect to you.
* If one business has no story and a different business has a story, you are more likely to pick the one with a story.
* Tell your story, rather than letting others “fill in the blanks”.
* If your story is good, then others will share the story with others.




* What is the difference between a story and experience?

* The experience comes from working with a company.
* It starts with the first call, the first website visit.
* It builds as you continue to work with them.
* You have to make sure that the experience backs up the story.
* The team and the quality of the work contribute to the story.
* The story builds the value so that people talk about it. The experience is what it is like to work with you.
* The story and the experience need to be connected.



The Disney Experience

* Can you name a large brand that is excellent for creating experiences?

* Easy answer: Disney World
* The Park Leaders Show focuses on leadership and management for parks and recreation.
* In general, the guests on the show said that parks create their problems and look inside to solve their problems.
* Lee was interviewed on the show, and then he and Jody teamed up to launch Creating Disney Magic.




* What are some things you have learned from Lee Cockerell about Disney?

* You are putting on a show every single day.
* Your customer is likely to go somewhere else if you have not put on a good show.
* When the people act the way they are supposed to, and the place looks how it is supposed to, they will come back.
* If you have flies, you must like flies – otherwise you would correct it.




* What are some of Lee's stories about creating a great experience?

* Disney managers are required to spend a certain percentage of their day out in the park with the guests.
* If your employees feel they are valued, they will deliver value to their customers.
* If you create a better story and a better experience, you can price higher.
* Find the story that is unique to you. That is where the value comes from.
* When the customer has a great experience, they believe it is more valuable than what they paid for it.



Creating an Experience

* How can a solo entrepreneur or small business create an experience?

]]> Episodes Archives - Art Of Value full false 43:56 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Lawyers Can Switch to Value Pricing with John Chisholm – 042 https://artofvalue.com/lawyers-can-switch-value-pricing/ https://artofvalue.com/lawyers-can-switch-value-pricing/#respond Tue, 21 Apr 2015 12:00:50 +0000 http://artofvalue.com/?p=4870 John Chisholm helps law firms move from hourly billing to value pricing. A 25-year lawyer turned business consultant, he says the problem with the cost of legal services is not the amount. It is the unpredictability. Customers prefer the experience of and will pay more for price certainty. John shares how this single change can inspire a spirit of innovation and entrepreneurship in lawyers.

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]]> https://artofvalue.com/lawyers-can-switch-value-pricing/feed/ 0 John Chisholm helps law firms move from hourly billing to value pricing. A 25-year lawyer turned business consultant, he says the problem with the cost of legal services is not the amount. It is the unpredictability. Value Pricing in Law Firms

* What is the most important thing you can share about pricing?

* No form of pricing is perfect. Pricing is an art.
* Just do it – give it a crack.
* There is no perfect price.




* Why are attorneys reluctant to apply their judgment skills to pricing?

* They are issues when it comes to negotiating their price.
* They want it to be right and they fear having a pricing discussion.
* They hide behind cost agreements and estimated hours.




* Why is value pricing a better business model as the law becomes more complex?

* Global financial crisis made customers more cost conscious.
* The cost of legal services isn't the problem.
* The unpredictability and bill shock are the issues.
* Having more certainty around price is important to the customer.
* The knowledge that lawyers used to sell is now available for free on the internet.
* Making informed judgments adds value to their client's business.



Innovation in Legal Firms

* What are some ways attorneys can create more value for the customer?

* The better firms are not waiting for problems to arise, but are involved in the client's business.
* They are helping them to avoid problems arising.
* Innovation in the legal profession bears little resemblance to what occurs in other industries.
* Customers do not want their law firms to be risk takers.
* How you deliver the solution is where the innovation can occur.
* The leaders of some Australian law firms are bringing more of an entrepreneurial spirit to the firm.
* If you can get people with other skills involved in legal and medical, it helps the firms and their clients.
* Legal firms in the States are one of the few professions where the business must be run by lawyers.




* Is the practice of value pricing in law similar or different to other professions?

* Many law firms benchmark against what other law firms are doing.
* Firms say they want to be different, but in reality, they want safety in numbers.
* The better firms now are looking at what other companies are doing to help them improve, rather than their competitors.
* Lawyers are not entrepreneurs. The field did not traditionally attract that type of person.
* The entrepreneurial spirit is now moving into law in Australia.
* Right now, the most popular form of alternative fee arrangement is discounting.
* Under the time billing model, you can give a discount, but it is illusionary. Time sheets will just show you have worked more hours.



Switching to Value Pricing

* How do you start a conversation with someone who may switch to value pricing?

* The firms who have experienced the most success have an internal champion.
* He makes sure they are serious about the conversion by asking questions.
* The firms who have been more successful have set a date to get rid of time sheets.
* Time sheets alone are a huge limiter on innovation.
* The obsession with efficiency and cost allocation leads to bad effects, including the lack of collaboration.




* How do you have a value conversation with someone who is switching to value pricing?

* What does the client want out of it?
]]> Episodes Archives - Art Of Value full false 51:23 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Journey from Time to Value with Matthew Burgess – 041 https://artofvalue.com/journey-time-value/ https://artofvalue.com/journey-time-value/#respond Tue, 14 Apr 2015 12:00:24 +0000 http://artofvalue.com/?p=4849 Matthew Burgess is a lawyer who lost a customer when he sent an email at 4:30am on a Sunday. The customer said he wanted Matthew's best work not what remained after exhaustion. This incident started Matthew's quest to find a better way. For the last ten years, he has practicing value pricing at his own firm, View Legal. He shares why the switch is a journey instead of a destination.

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]]> https://artofvalue.com/journey-time-value/feed/ 0 Matthew Burgess is a lawyer who lost a customer when he sent an email at 4:30am on a Sunday. The customer said he wanted Matthew's best work not what remained after exhaustion. This incident started Matthew's quest to find a better way. Value Pricing as a Journey

* What is the most important thing you can share about pricing?

* Value pricing is a journey.
* Particularly in legal and accounting, a lot of the specialists are trying to understand that if you do enough work, you will get to the answer of how to value price.




*  Why is value pricing a journey, not a destination?

* There is not an answer to value pricing; it is a practice.
* The transition can go from fixed price and hope, to abolishing time sheets to truly value pricing.
* Value pricing can be life changing.




* How did becoming a “firm of the future” change your life?

* Matthew's first success was his ability to fill in a time sheet well at his law firm.
* The Firm of the Future was a book he found for a presentation at the annual partners' retreat.
* He lost a customer because he emailed him at 4:30am on a Sunday morning.
* The customer wanted him to think strategically, not to be worn out all the time.
* He tried to persuade his current firm to switch to a value pricing model.
* The organization was not aligned and so he started his own firm.



Switching to Value Pricing

* What is a reasonable timeframe to switch to value pricing?

* It depends on the personal journey of the decision makers in the firm.
* Examples:

* In an accounting firm, 10 partners decided on a Friday to abolish time sheets and convert to value pricing. They started Monday with no time sheets. It  took a year to deal with the issues from it, but they jumped in feet first.
* In a small legal firm, they are still filling in time sheets so they know their costs, but they are trying to value price. They wanted to pay Matthew's firm to price each project.


* If you haven't abandoned the time sheet, you haven't embraced value pricing at all.
* Under a time billing model, it is about the time recorded.
* Under a value pricing model, it is all about the value that is created.




*  How do you scope and price for uncertainty in the legal field?

* Mergers and acquisitions are identical to how you should price litigation.
* Scoping on a regular basis is necessary, breaking up the work in smaller increments.
* It is a risk assessment.
* Always offer different tiers of how the customer can engage you.
* You can include access as one of the tiers.
* Going from value pricing to giving options has made a big impact on Matthew's business.
* He offers pricing using the concentric circle theory.
* The options must reflect what is important to the customer.




* What is the value of having someone review a proposal who is completely objective?

* The biggest impact pricing well is self-esteem.
* An objective party can understand when you are undervaluing what you are selling.
* You need to speak with your spouse, your personal assistant, anyone who can provide an objective opinion. Create a pricing council.



Having a Value Conversation

* What is one of your favorite questions to ask during a value conversation?

]]> Episodes Archives - Art Of Value full false 47:02 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Why to Productize Your Consulting with Brian Casel – 040 https://artofvalue.com/productize-consulting/ https://artofvalue.com/productize-consulting/#respond Tue, 07 Apr 2015 12:00:29 +0000 http://artofvalue.com/?p=4806 Brian Casel specializes in launching and bootstrapping businesses. He is the author of Productize, a course to help freelancers turn their custom services into products. He also runs Restaurant Engine, a combination of SaaS and productized service for the restaurant industry. What Is Productized Consulting? What is the most important thing you can share about pricing? Pricing is more art than science. How […]

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]]> https://artofvalue.com/productize-consulting/feed/ 0 Brian Casel specializes in launching and bootstrapping businesses. He is the author of Productize, a course to help freelancers turn their custom services into products. He also runs Restaurant Engine, a combination of SaaS and productized service for ... Productize, a course to help freelancers turn their custom services into products. He also runs Restaurant Engine, a combination of SaaS and productized service for the restaurant industry.
What Is Productized Consulting?

* What is the most important thing you can share about pricing?

* Pricing is more art than science.
* How does the customer view pricing in terms of the value received?
* Do customer support as often as possible to understand your customers better.
* What is the return on investment?
* How will this service make the customer more money or save time?
* Set the price as a fraction of the return.




* What is productized consulting?

* From the customer perspective, it is a specialized done-for-you solution that is packaged at a set scope and price.
* From the professional perspective, it runs systematically and can grow without your involvement.




* What is the difference between custom work and productized consulting?

* Custom work starts with a discovery meeting and then a proposal with detailed specs, timing, and price.
* Every time you meet with a new custom customer, you have to redefine your value proposition.
* With productized consulting, you offer the same outcome to everyone and find customers that fit your model.
* Productized consulting can be used as an anchor point to customize add-ons.
* You can offer a productized service to go with your product.
* Depending on your end goal, you can decide how much you want to be involved with productized consulting.
* A freelancer sells time for money; an owner creates an asset that grows in value over time.




* What is the difference between productized consulting and a SaaS application?

* SaaS is typically software – an application to which you subscribe.
* Productized consulting scales up by having personal done-for-you services.
* The services are highly standardized.
* Through processes and systems, anyone can work in your business and replicate the steps.



Leveraging Processes and Systems

* What was the epiphany you had regarding processes and systems?

* Brian wrote a post on the mistakes he made building Restaurant Engine: Lessons Learned Building a Productized Service.
* All mistakes shared the same theme of “do it yourself” with easy sign-up and no customer support.
* Once he discovered that customers were not staying due to startup issues, he included setup with the product.
* He embraced the idea of writing procedures, bringing in a team and refining the procedures over time.




* How do you create processes and systems effectively?

* It will take more time to document the process, but you need to invest the time in order to delegate: How to Delegate When You're Creative.
* If you delegate the processes, you are freeing yourself to work on the big picture ideas and strategies.




* What is the first step to create a productized consulting offering?

* Recognize the way you do things.
* Try to identify patterns to make the work more predictable.]]> Episodes Archives - Art Of Value full false 47:31 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Pricing the First WordPress Host with Joshua Strebel – 039 https://artofvalue.com/pricing-first-wordpress-host/ https://artofvalue.com/pricing-first-wordpress-host/#respond Tue, 31 Mar 2015 12:00:10 +0000 http://artofvalue.com/?p=4765 Joshua Strebel is a husband, a father and co-founder and CEO of Pagely, the first managed WordPress hosting company. He graduated college on a Friday, got married on a Saturday and started his business 90 days later with the leftover honeymoon money. Pricing WordPress Hosting What is the most important thing you can share about […]

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]]> https://artofvalue.com/pricing-first-wordpress-host/feed/ 0 Joshua Strebel is a husband, a father and co-founder and CEO of Pagely, the first managed WordPress hosting company. He graduated college on a Friday, got married on a Saturday and started his business 90 days later with the leftover honeymoon money. Pagely, the first managed WordPress hosting company. He graduated college on a Friday, got married on a Saturday and started his business 90 days later with the leftover honeymoon money.
Pricing WordPress Hosting

* What is the most important thing you can share about pricing?

* Always charge more.
* Charge what the market will bear – your price is always too low.
* Pricing lets you choose your customer and assign a value to your work.




* Does your subjectivity (lack of objectivity) get in the way of pricing?

* It depends on the customer.
* Being able to launch a WordPress site is a huge value to someone who doesn't have those skills.
* It has less value to someone who does not have those skills.




* Where did you get the inspiration to start a managed WordPress hosting company?

* In the first 5 years, it was a design shop.
* Priced the original customers out by increasing their pricing over time.
* Asked themselves how to make building a website easy, which is what led to Pagely as a streamlined website building company.
* Asked themselves how to automate the process with basic information to serve previous customers who had less money.
* After the first 20-30 customers, the model stopped bringing in customers and they put it on hold for 3-4 years.




* How did you determine your plans and prices for Pagely?

* Pagely was the first of its kind and there wasn't any true competition.
* Compared themselves to GoDaddy and others at the time, and they priced their more valuable services at 3x the going rate.
* Now they have a range of prices from about $24 to thousands.
* Pagely focuses on the niche where they can profit in their market.



Responding to the Market

* Did you foresee the market change or did you respond as it was happening?

* They responded as the market changed.
* They are pricing toward the value they are delivering to the customer.




* Do you consider managed hosting to be a SaaS application?

* Yes, they do consider themselves SaaS.
* “WordPress as a service” is the phrase they coined.




* What is a common mistake owners make when pricing a SaaS app?

* Always pricing it too low.
* The freemium model doesn't work.
* Don't give away services.
* Be aware of the competition, but benchmark off where your desired customer is vs. your goals and values.




* What is an example of a SaaS app that is pricing well?

* Optimizely is cool – great app for A/B testing, and isn't cheap, but the value is there.
* They earn their pricing because their UI is intuitive and slick.
* An app has to look good, not just work well.




* How is pricing a SaaS app different from pricing other products?

* Products are a one-time sale.
* SaaS is more like a lease.
* Josh's example of using Basecamp shows how he got value and they made money.



The WordPress Economy

* What is your opinion of the state of pricing in the WordPress economy?

* Everything is too low.
* To be taken seriously, you have to put a dollar value on your product...]]> Episodes Archives - Art Of Value full false 44:47 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Do Not Assume in a Value Conversation with Jonathan Stark – 038 https://artofvalue.com/not-assume-value-conversation/ https://artofvalue.com/not-assume-value-conversation/#respond Tue, 24 Mar 2015 12:00:47 +0000 http://artofvalue.com/?p=4711 Jonathan Stark is a mobile consultant who helps retail brands thrive in a post-PC era. He's written three books on web development including O'Reilly's Building iPhone Apps with HTML, CSS, and JavaScript. He made the national news with Jonathan's Card, an experiment using mobile payments at Starbucks. He ditched hourly billing and has 10 years experience with value pricing. Value Pricing […]

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]]> https://artofvalue.com/not-assume-value-conversation/feed/ 0 Jonathan Stark is a mobile consultant who helps retail brands thrive in a post-PC era. He's written three books on web development including O'Reilly's Building iPhone Apps with HTML, CSS, and JavaScript. He made the national news with Jonathan's Card,... Building iPhone Apps with HTML, CSS, and JavaScript. He made the national news with Jonathan's Card, an experiment using mobile payments at Starbucks. He ditched hourly billing and has 10 years experience with value pricing.
Value Pricing vs. Hourly Billing

* What is the most important thing you can share about pricing?

* Do it!
* If you are doing hourly estimates, you are not really pricing.
* The client cannot trust you if you do not base your price on the results.
* There is an emotional difference when using value pricing vs. hourly billing.




* How are you demonstrating you are an expert through value pricing?

* Goal is 100% customer satisfaction.
* As an hourly biller, you are going to be wrong 90% of the time.
* Hourly billing allows you to start working without agreeing on the goal first.
* Find out what the point of the project is first.




* Can you really focus on the end result through hourly billing?

* The practice of billing by the hour is unethical.
* Expertise is not rewarded with hourly billing.
* If a tool exists to solve a customer problem, you will look for it if you are motivated to focus on the end result.
* You likely would not if you were billing by the hour.



Having a Value Conversation

* What is one of your favorite questions to ask in a value conversation?

* Follows this line of questioning:

* Tries to talk them out of hiring him first
* Discuss what the project is
* Look for alternatives to do the project at all
* Discuss reasons to avoid the alternatives
* Recognize the pain of staying where they are


* There is a difference between a fixed bid and a value-based bid.
* You can set the price more correctly if you are using a value-based approach.
* Elicit conversation with the customer that increases the perceived value in their mind, which avoids sticker shock.
* Work with the customer to figure out a price that is going to work for both of you.
* Sometimes a customer can't determine the value, but if you give them the number, they know if it is worth it.
* Have a 30-60 minute value conversation so that you and the customer are clear on the value to the organization before you set a price.




* How do you balance talking about the “what” and “why” with a customer?

* Ask why.
* Customers try to self-diagnose.
* Challenge their assumptions.
* Walk the customer through how big of a problem it is for them.




* How do you handle resistance when having a value conversation?

* Rarely, but he is genuine about having the conversation so the customer does not feel gouged.
* Explain that you need to know the ultimate goal so that you know how to make decisions to get to the end solution.
* When you first start out, it feels risky, but the risk is already there.
* There will be fewer disagreements with your customers if you take on the upfront risk.
* “We spent all this money and we have nothing to show for it” can be the customer's reaction to an hourly estimate at the end of the project.
* Price with the margin in mind.
* This business model changes the way you think about your livelihood.



Learning from Alan Weiss
]]> Episodes Archives - Art Of Value full false 55:14 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Coaching: Pricing An Online Course with Caleb Simonyi-Gindele – 037 https://artofvalue.com/coaching-pricing-online-course/ https://artofvalue.com/coaching-pricing-online-course/#respond Tue, 17 Mar 2015 12:00:43 +0000 http://artofvalue.com/?p=4668 Caleb Simonyi-Gindele is a registered clinical counselor from Canada who helps couples build thriving, passionate marriages. He and Kirk are in a mastermind group together. Caleb requested assistance with pricing his online marriage course. They decided to record the coaching session for the Art of Value Show. Discovering Value What is the current situation? Diakon Leadership offers counseling and coaching for marriages. Caleb's remote location […]

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]]> https://artofvalue.com/coaching-pricing-online-course/feed/ 0 Caleb Simonyi-Gindele is a registered clinical counselor from Canada who helps couples build thriving, passionate marriages. He and Kirk are in a mastermind group together. Caleb requested assistance with pricing his online marriage course. Discovering Value

* What is the current situation?

* Diakon Leadership offers counseling and coaching for marriages.
* Caleb's remote location limits the number of in-person sessions.
* He launched the Only You Forever website and podcast to offer virtual sessions.
* He is also developing an online course.




* What are the goals for creating the online course?

* Most couples live through 7 years of marital distress before they seek help.
* Caleb wants to reach couples sooner to enrich and strengthen their marriages.




* How long does it take for a marriage to deteriorate?

* The average time is several years of distress.
* Counseling can be expensive and is not always successful.




* How can you reach couples before their marriage is in distress?

* Caleb is targeting the millennial generation.
* Millennials have seen divorce first-hand and want to avoid it.
* They can be proactive to prevent future pain for their children.
* However, people are more driven to relieve pain than prevent it.




* How do you want to offer the course?

* Online videos, 8-12 minutes each, with a workbook.
* Watch one video per week and complete the exercises.
* The modules in theworkbook are:

* Framework – What is happening with yourself and your spouse
* Core Skills – Communication
* Best & Worst Practices – What to watch out for






* What is your inspiration for designing the course?

* There was a pilot program in the Fall 2014 but it was too intense.
* Content has been carved into smaller pieces.




* What is your financial goal for the course launch?

* $10,000 is the goal for the first week.




* How do you plan to launch the course?

* Email list, podcast and Facebook ads will drive people to a free webinar



Creating Options

* What could you do to create a third option?

* Studies show that three is the right number of choices.
* “How I work with you?” instead of “Will I work with you?”
* Three choices increase the opportunity for a “yes”.
* Membership site is a possible option.
* Another approach is to offer three options:

* Videos only
* Videos plus email support
* Videos, email and coaching


* Videos only offer value if a couple is less distressed in their marriage.
* Offer the chance to upgrade after the initial purchase.




* Would group coaching make sense for the course?

* It could be an option, but would make some couples nervous.
* There could be a huge range of distress from couple to couple.
* Survey the existing audience to get feedback.




* What are other ideas you have to create options?

* Surprise gift – 2 coffee mugs with communication tips.
* Create a way to measure how each couple is doing.
* Additional material to increase the value of highest option.
* Email campaign describing Caleb and Linda's marriage experience.




]]> Episodes Archives - Art Of Value full false 44:34 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The State of Value Pricing (Down Under) with Steve Major – 036 https://artofvalue.com/state-value-pricing/ https://artofvalue.com/state-value-pricing/#respond Tue, 10 Mar 2015 12:00:23 +0000 http://artofvalue.com/?p=4606 Steve Major is a pricing and business consultant from Australia. He started out as a charted accountant (CPA) and then founded a consultancy for accountants called Pricing Power. He grew up on a sheep station (70,000 acres) in Texas, Queensland. He is the host of the Pricing Power podcast and enjoys landscape photography. Switching to Value Pricing What […]

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]]> https://artofvalue.com/state-value-pricing/feed/ 0 Steve Major is a pricing and business consultant from Australia. He started out as a charted accountant (CPA) and then founded a consultancy for accountants called Pricing Power. He grew up on a sheep station (70,000 acres) in Texas, Queensland. Pricing Power. He grew up on a sheep station (70,000 acres) in Texas, Queensland. He is the host of the Pricing Power podcast and enjoys landscape photography.
Switching to Value Pricing

* What is the most important thing you can share about pricing?

* Pricing is the most important lever in your business.
* It has more impact on your profit than anything else.
* Pricing can change your life as well as your firm.




* What was your first exposure to value pricing?

* Twelve years ago, Steve built his home with a fixed-price contractor.
* It made Steve wonder if he could price accounting services the same way.




* Did you bill by the hour before you switched to value pricing?

* Yes, in essence, but without accurate time sheets.
* They used a rough guesstimate for time sheets.
* Billing was done at the end of the job, not upfront.




* What were some of the challenges when switching to value pricing?

* Steve thought the challenge would be with his customers.
* The biggest challenge was his own confidence.
* He had to be certain in his own value.



The State of Value Pricing

* What is the state of value pricing in Australia in 2015?

* Australia is getting close to a tipping point in the accounting and legal professions.
* It is widely believed that the billable hour is dead, but people are unsure what to do.
* Some have moved from the billable hour to menu pricing.
* In law, value pricing is starting to make headway.
* The billable hour is still being used in consulting, IT and web development.
* Starting to see firms in other industries adopt value pricing.




* Why is a fixed price not the same as a value-based price?

* A fixed price is a step on the way to a value price.
* A value price is based on the customer's perception of the value of the engagement.
* Fixed prices are not automatically connected to value.




* Why has value pricing been more adopted in the accounting and legal fields?

* It is reflective of the consultants to the industries.
* The accounting environment has changed due to compliance work.
* Accountants are working differently with customers due to technology.
* The customer perspective of the value of accountants has changed.
* There was a shortage of good talent in the both industries.
* The speed of technology is turning some accounting work into a commodity.




* Has value pricing made deeper penetration in Australia than in the US?

* Yes, but only slightly.
* Australia is closer to the tipping point than the US.
* Particularly in accounting, several pricing consultants have great influence in Australia.
* The economic imperative to change has not come to many industries yet.



Learning to Value Price

* How can someone start learning to have a value conversation?

* Start asking the questions to get to an understanding of what is happening in the customer's business.
* Realize that you are not just selling a solution, but providing a significant change in the customer's business.




* What are some of your favorite value questions to ask the customer?

* What are the problems the customer has in the business?
* What are the opportunities the customer would like leverage?
]]> Episodes Archives - Art Of Value full false 46:29 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Value of Tomorrow with Brennan Dunn – 035 https://artofvalue.com/value-tomorrow/ https://artofvalue.com/value-tomorrow/#respond Tue, 03 Mar 2015 13:00:18 +0000 http://artofvalue.com/?p=4559 Brennan Dunn started as a freelancer and grew his business into a 10+ person agency. He then decided to create software for himself, rather than others with Planscope.io. Additionally, he has created a variety of teaching tools for pricing and lead generation at DoubleYourFreelancing.com. Positioning With Care What is the most important thing you can share about pricing? It's […]

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]]> https://artofvalue.com/value-tomorrow/feed/ 0 Brennan Dunn started as a freelancer and grew his business into a 10+ person agency. He then decided to create software for himself, rather than others with Planscope.io. Additionally, he has created a variety of teaching tools for pricing and lead gen... Planscope.io. Additionally, he has created a variety of teaching tools for pricing and lead generation at DoubleYourFreelancing.com.
Positioning With Care

* What is the most important thing you can share about pricing?

* It's not about you. It's about the customer.
* When it comes to pricing yourself, most people tend to think about what we need by converting salary into an hourly rate.
* We underestimate the surplus of value we bring to our customers.
* People look at themselves as a commoditized provider.




* What is the first thing you must address to increase prices?

* Rewire what you think you provide.
* Why are people paying you in the first place?
* Until you understand what your clients want, you cannot escape the pull of commoditizing your service.
* Dig deeper to understand how to provide the best product and not limit yourself.




* What is wrong with using the word “freelancer” to describe yourself?

* Freelancer describes a negative working relationship.
* You are describing the legal form of your business.
* There is no description of what someone is getting.
* Why should you be hired if you are providing the same thing?
* Describe and position yourself with care.



Why vs. What

* Why is it hard for a professional to talk about “why” instead of “what”?

* Imposter syndrome: We are comfortable with what we do. Going beyond that can be stepping into unknown areas.
* Personal vanity: We are very prideful of how good we are at what we do.
* Sell in terms of what the customer wants instead of what you provide.




* How can you take the first step to talk about “why” instead of “what”?

* The initial conversation is where you start.
* Don't dive into the requirements of what is needed; find out what the customer really wants.
* Listen to what the customer wants, but then find out what prompted the customer to decide on that.
* “Why are you firing your website?”
* Strip away the layers of the surface assumptions to get down to solving the business problem.
* Determine what tomorrow looks like to the customer.




* What is one of your favorite questions to ask during a value conversation?

* How financially painful is the situation?
* Present non-disclosure agreement to customer early in the process to prevent objections.
* Only work on projects where you can deliver a return on investment.



Minimizing Risk

* Do you encounter resistance to signing a master services agreement early?

* The master services agreement doesn't mean they are paying anything yet.
* It mentions that neither party can poach employees.
* Payment information is included, but the non-disclosure portion is really what is about.
* Allows the provider to lead the sales process.
* Offering a niche service, provides you a higher likelihood of winning the project since you are lowering risk.




* Is it risky to ask questions that go deep in the value conversation?

* Taking an active interest in the customer's business is not objectionable.
* When you understand the why behind the project, what you create will be more focused.
]]> Episodes Archives - Art Of Value full false 52:29 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing The Magic and Logic of Pricing with Tim Williams – 034 https://artofvalue.com/magic-logic-pricing/ https://artofvalue.com/magic-logic-pricing/#comments Tue, 24 Feb 2015 13:00:52 +0000 http://artofvalue.com/?p=4521 Tim Williams is a marketing professional with over 20 years experience in large agencies. He is the founder of Ignition Consulting Group and author of Positioning for Professionals. Tim is also a Senior Fellow at the VeraSage Institute. Pricing Integrity What is the most important thing you can share about pricing? Stand your ground. When […]

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]]> https://artofvalue.com/magic-logic-pricing/feed/ 3 Tim Williams is a marketing professional with over 20 years experience in large agencies. He is the founder of Ignition Consulting Group and author of Positioning for Professionals. Tim is also a Senior Fellow at the VeraSage Institute. Ignition Consulting Group and author of Positioning for Professionals. Tim is also a Senior Fellow at the VeraSage Institute.
Pricing Integrity

* What is the most important thing you can share about pricing?

* Stand your ground.
* When you protect your pricing integrity, it makes the client want you more.




* What is pricing integrity?

* We only have our intellectual capital and integrity to sell.
* If we violate that, it sends a strong message about how we work.




* Is it lying to lower the price without lowering value?

* Yes, then you are not providing your real price.
* It is an issue of respect.
* You can change the price if you remove things that contribute to the value.




* Can you value price in China?

* Everything is value priced in China, as you negotiate every price.
* Some stores and markets have no price marked.




* Do you recommend a trip to China to learn to value price?

* It is an interesting wakeup call.
* The jade craftsmen are paid per piece, so the more skilled they are at their craft, the more money they earn.
* They price what the maximum value is to the customer.
* Pricing principles and business practices can be cultural.



Value Pricing in Advertising

* What is the status of value pricing in advertising?

* After about 5 years of foot-dragging, the advertising agency business, finally, is aware that the billable hour model is sub-optimal.
* Most firms are still pricing by the hour.
* Marketing procurement folks are more enlightened on the customer side, but still purchase a staffing plan.
* There is a 40-year decline in profitability in the agency business.
* The client community (large advertisers) have been interested in value-based compensation for a long time.




* Can value pricing scale in a larger agency?

* There is a stronger imperative for a 700-person firm to abandon the practice as it eats up so much of their capacity.
* Time sheet management accounts for 10-12% of the total energy of the organization.




* Do you have to eliminate time sheets to value price?

* You will be better at value pricing if you take away the time sheets.




* How did you help Teehan+Lax switch to value pricing?

* Tim showed Jon Lax examples of value pricing from agencies around the world.
* As soon as you can change your mind, you can change your practices.
* Time forecasting needs to be done in advance as a cost-accounting measure.




* What is the first step for an agency to switch to value pricing?

* Help them to understand how they create value for their customers, other than time, and how they can be compensated for that value.
* You only get paid what you think you are worth.




* What is the value of the Nike swoosh?
]]> Episodes Archives - Art Of Value full false 58:03 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing A Biblical View of Creating Value with Ray Edwards – 032 https://artofvalue.com/biblical-view-creating-value/ https://artofvalue.com/biblical-view-creating-value/#comments Tue, 10 Feb 2015 13:00:44 +0000 http://artofvalue.com/?p=4457 Ray Edwards is a copywriter and marketer who has worked with successful clients like Tony Robins, Jack Canfield, and Jeff Walker. He is the host of a weekly podcast, The Ray Edwards Show, and the author of Writing Riches, about effective copywriting. Three Questions for a Value Conversation What is the most important thing you can […]

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]]> https://artofvalue.com/biblical-view-creating-value/feed/ 2 Ray Edwards is a copywriter and marketer who has worked with successful clients like Tony Robins, Jack Canfield, and Jeff Walker. He is the host of a weekly podcast, The Ray Edwards Show, and the author of Writing Riches, about effective copywriting. The Ray Edwards Show, and the author of Writing Riches, about effective copywriting.
Three Questions for a Value Conversation

* What is the most important thing you can share about pricing?

* You should set your prices based on the value you bring to your client, which assumes:

* You know the value you bring to your client.
* You understand the cost of them not doing business with you.


* If you under price, you will have to take on more clients than you can serve at your best.
* You have to own the value you create, the responsibility to communicate that value and the responsibility to price that value.
* To serve your customer the best, you have to create margin through pricing.




* How do you determine the value of something that is intangible?

* You have to find a way make the intangible, tangible.
* Ray explains how to determine the value of creating a logo.
* We make split-second decisions about how much something is worth. – Blink by Malcolm Gladwell
* Use the value you have created for other customers as a benchmark.
* Use Google to research the typical increase in value for a product or service.




* What is one of your favorite questions to ask when having a value conversation?

* Outcome Question – What must have happened one year from now for you to be happy with your progress? – The Dan Sullivan Question
* Doing Nothing Question – What is the cost to keep doing what you are doing?
* Decision Question – Part of serving the customer is facilitating an answer in a timely manner.
* An objection is the customer asking you to help them answer a question.




* How do you determine whether you actually delivered value?

* Agree at the start of the project what success looks like, and then it is easy to determine “Did we achieve it?”
* Perform an After Action Review.



Biblical View of Value

* What is a Biblical view of creating value?

* Golden Rule – Treat other people the way you want to be treated.
* As a believer, your view of value is rooted in the inherent value of a human being.
* As a believer, you create maximum value when you walk in your calling.




* What is a Biblical view of setting a price?

* The buyer should receive more value than the price he pays.
* Proverbs 11:26 – …blessing will be on the head of him who sells it [grain].




* What is one of your favorite Bible stories about business?

* Mark 10:17-28 – The Rich Young Ruler
* Ray's Paraphrase – This money stuff, it will destroy you. If you follow me, I will give 100 times more money than you have now.
* It is never about the money. It is about who or what you worship.




* What are the main concepts of your talk “Spiritual Foundations That Produce Wealth”?

* There are two mindsets or spirits regarding prosperity: Greed and Poverty.
* If your soul is not prospering (mind, will, emotions),]]> Episodes Archives - Art Of Value full false 51:16 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Value and Pricing for Copywriters with Ed Gandia – 031 https://artofvalue.com/value-pricing-copywriters/ https://artofvalue.com/value-pricing-copywriters/#comments Tue, 03 Feb 2015 13:00:26 +0000 http://artofvalue.com/?p=4417 Ed Gandia is freelance copywriter who got his start writing white papers for his employer. Now, he specializes in educational content for B2B software companies. He is an author and host of the High-Income Business Writing Podcast. Pricing for Freelance Copywriters What is the most important thing you can share about pricing? Most people price on […]

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]]> https://artofvalue.com/value-pricing-copywriters/feed/ 1 Ed Gandia is freelance copywriter who got his start writing white papers for his employer. Now, he specializes in educational content for B2B software companies. He is an author and host of the High-Income Business Writing Podcast. High-Income Business Writing Podcast.
Pricing for Freelance Copywriters

* What is the most important thing you can share about pricing?

* Most people price on the low side.
* Forrest Gump Principle – The less you know about a market, the easier it is to price higher.
* Ed started pricing too high because he was new to freelance writing.
* Most fears of pricing and having a money conversation are unfounded.




* What is the most common way writers are pricing their services?

* The most common way for freelance commercial writing is hourly billing.
* Check out: The History of the Billable Hour with Jon Lax
* One of the best business models is recurring work from long-term clients.
* The billable hour brings the work down to a “per drink” level (commodity).




* How do you approach a conversation with a customer to determine value?

* Most of the copy Ed writes cannot be tied directly to revenue generation.
* Ed starts with a project price and then factors in his experience and customer risk.




* How do you address the fear a customer may have in hiring a new writer?

* It starts with strategic positioning on your website, blog and other marketing.
* Ed’s goal is to have 75% of his customers pre-sold before he talks to them.
* Having a discovery conversation is part of the value you offer the customer.



The Value of Business Copy

* Is it possible, in your market, to link the copy you write to an increase in leads?

* There are two types of content in his market: lead generation and educational.
* It is hard to tie an increase in sales to educational copy.
* Ed anchors his price to a single sale of 6-figure or 7-figure software.
* Ed prefers to pursue customers who already understand the value he offers.




* What are some of the differences between pricing small vs. large businesses?

* Ed say his sweet spot is medium-size software companies (100M+).
* Medium-size companies do not have the bureaucracy of Fortune 500 companies.




* Do you have a list of questions you want to discuss with each customer?

* Lead the customer through a value conversation using a checklist.
* First, what is the need of the customer, problem to solve?
* Second, what is your decision making process?
* Third, what is your timeframe for completion?
* Fourth, what is the next step?



Podcast for Freelance Writers

* Where did you get the inspiration for the High-Income Business Writing Podcast?

* The common theme in the freelance writing community is barely getting by.
* Ed wants to help writers change the conversation with their customers to increase their income.




* What is one of the best things you have learned from a guest on your podcast?

* Ed learns the most from other practitioners who are experimenting with new things.




* What are a couple of your favorite episodes of your podcast?

* How to Price Your Writing Projects
* http://artofvalue.com/?p=4393 Bob Burg is a best-selling author and popular speaker. In his books (with co-author John David Mann), The Go-Giver and Go-Givers Sell More, Bob explains the Five Stratospheric Laws of Success. The first law is The Law of Value. Laws of Value and Compensation What is the best thing you can share about pricing? Unless […]

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]]> https://artofvalue.com/law-value/feed/ 0 Bob Burg is a best-selling author and popular speaker. In his books (with co-author John David Mann), The Go-Giver and Go-Givers Sell More, Bob explains the Five Stratospheric Laws of Success. The first law is The Law of Value. The Go-Giver and Go-Givers Sell More, Bob explains the Five Stratospheric Laws of Success. The first law is The Law of Value.
Laws of Value and Compensation

* What is the best thing you can share about pricing?

* Unless your last name is Walmart, making low price your value proposition is probably not a good idea.
* When you sell on price, you are a commodity. When you sell on value, you are a resource.




* Can you unpack The Law of Value from your book, The Go-Giver?

* There is a difference between price and value. Price is a dollar amount.
* Value is the relative worth or desirability of the end result to the customer.
* Example: An accountant sets a price of $1,000 to prepare your tax return, saving you $5,000 in taxes.
* The accountant gave more in use value than he received in cash value.




* Can you unpack The Law of Compensation and connect it to the Law of Value?

* The more people whose lives you touch with exceptional value, the more money with which you will be rewarded.




* The third law is The Law of Influence.

* All things being equal, people will do business with those they know, like and trust.




* What is the difference between creating value organically and focusing on the specific value for the customer?

* Giving value because that is who you are (your character) is being congruent.
* Two types of value we communicate to a customer: intrinsic value and experience value.
* Five categories of value you can add to a product or service: Excellence, Consistency, Attention, Empathy, Appreciation
* When we are in a relationship with a customer, we focus even more on value.



The Role of Questions

* Kirk explains the books in the Go-Giver series.

* The Go-Giver is a parable about how a salesperson learns the Five Laws of Stratospheric Success.
* Go-Givers Sell More explains how to implement each of the five laws in-depth.




* What is one of your favorite questions to ask a customer?

* Selling is finding out what someone needs, wants or desires. You find out by asking questions.
* There are 3-4 questions you can ask each customer, depending on your market segment.




* Chapter 16 of Go-Givers Sell More explains feel-good questions.

* Feel-good question are designed to show a genuine interest in the other person.
* As an example: How did you get started in the _____ business?
* One Key Question: How can I know if someone I am speaking with is a good prospect for you?



The Role of a Salesperson

* How do you define the role of a salesperson?

* The person who helps another get what they need, want or desire.
* Selling at its core, and more profitably, is about giving (creating value).
* The English root word for “selling” means “to give”.




* What is a step someone can take today to starting acting like a “Go-Giver”?

* Pick one of the Five Laws of Stratospheric Success and take one step to implement it each day.
* Jared Easley, host of Starve the Doubts, connected Bob and Kirk for this interview.




]]> Episodes Archives - Art Of Value full false 41:37 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing Price Communicates Your Value with Jay Shepherd – 029 https://artofvalue.com/price-communicates-value/ https://artofvalue.com/price-communicates-value/#respond Tue, 20 Jan 2015 13:00:45 +0000 http://artofvalue.com/?p=4350 Price is more than a number. It is part of how a lawyer communicates value to the customer. To unpack this principle, Jay Shepherd, an employment litigation attorney, compares how a customer perceives an hourly rate vs. a fixed price. He says knowledge instead of activity is more valuable to the customer. Value pricing enables the customer to purchase what he wants in a manner he truly enjoys.

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]]> https://artofvalue.com/price-communicates-value/feed/ 0 Price is more than a number. It is part of how a lawyer communicates value to the customer. To unpack this principle, Jay Shepherd, an employment litigation attorney, compares how a customer perceives an hourly rate vs. a fixed price. Hourly Billing in the Legal Profession

* What is the most important thing you can share about pricing?

* Intentional pricing vs. accidental pricing.
* You (the professional) and the customer intend to do the work at a certain price.
* Hourly billing is the worst kind of accidental pricing.




* What types of pricing are found in the legal profession?

* Mostly hourly billing.




* Why is hourly billing not good for the customer or the professional?

* Customer – Hourly billing creates a conflict of interest between the lawyer and the client.
* Professional – If you are good at what you do, you are leaving money on the table.
* Three things determine hourly rates in the legal profession: Location, number of attorneys and years of experience




* How do you answer the question, “What is your hourly rate?”

* I do not have one. (An hourly rate is not a price.)
* A price should answer the question, “How much is this going to cost?”




* Why do you think hourly billing is insane?

* Professionals use an hourly rate because of fear.
* We suck at estimating how long something will take.
* If you write off hours, then the value is not in the hour.



Practicing Value Pricing in Law

* How do you price for the uncertainty in legal matters?

* The subjectivity of setting a price requires experience.
* The more experience you have, the better you price.




* What are some practical steps to transition to value pricing?

* Get comfortable with the concept of value by studying it (mental shift).
* Do a pilot or trial program with new customers to gain experience.
* Stop tracking time and set prices for everything (burn the ship).
* Collaborate with others when setting a price (pricing council).




* How do you approach having a value conversation with a customer?

* I need to get information about the client, their business and the problem.
* One, what is it worth to the customer to solve this problem? (You have to help the customer figure it out.)
* Two, what is it worth to you (the professional) to do the work (profit, likable client, interesting work, etc.)?




* What are some of the questions you consider during a value conversation?

* Is this someone with whom I want to spend a lot of time?
* Do they have experience working with lawyers or not?
* How important is this matter to the customer?
* How hard is it to find expertise in this matter?
* Do I have previous experience with the customer?
* How much do I want to do this work?



Subjectivity and Pricing

* The price helps educate the value of your work to the customer.

* Attorneys have to use judgement (subjectivity) to practice law. Apply the same skill to pricing.
* Prices sell knowledge. Hourly rates sell activity.
* Three types of legal knowledge: Substantiative, procedural, judgement




* What is the best value you have created for a customer?

* I was able to settle a non-compete case in three phone calls because of my knowledge, network and expertise.
]]> Episodes Archives - Art Of Value full false 1:02:31 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing A Contrary View of Value Pricing with Tim Dietrich – 028 https://artofvalue.com/contrary-view-value-pricing/ https://artofvalue.com/contrary-view-value-pricing/#respond Tue, 13 Jan 2015 13:00:23 +0000 http://artofvalue.com/?p=4296 Tim Dietrich is a database consultant, specializing in the FileMaker platform. He is the author of FileMaker Pro 13 Absolute Beginner's Guide and creator of FMEasySync, an open source sync framework for FileMaker. Wins & Losses in Value Pricing What is the most important thing you can share about pricing? Tim mentioned my session from FileMaker DevCon 2009 with Jonathan Stark. […]

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]]> https://artofvalue.com/contrary-view-value-pricing/feed/ 0 Tim Dietrich is a database consultant, specializing in the FileMaker platform. He is the author of FileMaker Pro 13 Absolute Beginner's Guide and creator of FMEasySync, an open source sync framework for FileMaker. FileMaker Pro 13 Absolute Beginner's Guide and creator of FMEasySync, an open source sync framework for FileMaker.
Wins & Losses in Value Pricing

* What is the most important thing you can share about pricing?

* Tim mentioned my session from FileMaker DevCon 2009 with Jonathan Stark.
* Tim and I both studied value pricing and came to different conclusions.
* Tim thinks value pricing works in some cases and not in others.
* Tim wrote a blog post explaining his position on value pricing.


* Describe some of your wins and losses with value pricing.

* Wins – It was easier with a new customer. It was also easier if the customer already had an understanding of the scope/value.
* Losses – They were existing customers. The scope of the project was not well-defined. They had not thought about the value.


* Do you deal with the scope and value of a project regardless of the business model?

* If you do not have a clear idea of scope, the project is going to fall apart.
* Tim and I disagree about the conflict of interest with hourly billing.


* What is an idea worth if it will save the client millions in liability claims?

* Tim thinks there is a difference between the scope of legal services and custom software.
* Tim and I disagree about how hourly billing impacts the management of the scope.
* Tim mentions my interview with Wes McClure on Why Value Is Important in Software Development.



Handling Uncertainty in Software Development

* Tim asks a question: Why do I think there is certainty in a separate discovery phase?

* The failure rates for software development are so high, there must be clear value to do the project.
* Tim and I disagree on who is responsible to determine the value (ROI) for the project.


* Tim asks another question: How do you calculate ROI for an existing system that is mission critical?

* No system is going to last more than 5 years. Continuing the ROI of the original system has value.


* Tim asks a third question: How do you charge for software support with value pricing?

* Have a very specific bug fix period for the initial development phase.
* Use a change bucket to budget money for future support requests.
* Or create a wish list for future customer requests. Then write a change request.
* Or create an access level agreement for future customer requests.


* Tim asks a fourth question: How do you handle emergency support requests?

* Give the customer a price for discovery for the issue and a separate price to fix the issue.



Is Hourly Billing Unethical?

* What are some of the downsides of hourly billing?

* You are being paid less if you learn to work faster.
* You may leave money on the table by not considering value.
* Tim and I disagree about whether hourly billing can be unethical.

]]> Episodes Archives - Art Of Value full false 57:46 info@artofvalue.com (Kirk Bowman)value,pricing,value pricing,hourly,billing,hourly billing