But value-based pricing is not yet widely used for systems integration projects. According to one expert, clients need to devote at least one person, full time, to keeping up with the contract. Value-based pricing has been particularly successful in the government sector. Where it works Types of value-based pricing Gain sharing. At least part of a consultant's pay is based on the gain or benefit to the client from the implementation of a system.
Payment is based on specific metrics, which are usually tied to cost savings or revenue earnings.
For example, a metric in a supply chain engagement might be improving inventory turnover by a given percentage. The client pays nothing until benefits accrue. The consultant absorbs all up-front costs. Consultants are rewarded or penalized at certain stages during an engagement. A reward might be based on the implementation of a certain SAP module, for example, within a specific period of time.