Implementing Value Pricing: A Radical Business Model for Professional Firms
An overwhelming majority of pro-fessional firms price their services by the flawed hourly billing method. This method is outdated, suboptimal, and driving the best and brightest out of the professions. While lawyers, accountants, and consultants serve noble callings, the predominant method of pricing for their services is not worthy of them. There is a better way.Implementing Value Pricingdemonstrates a superior model to price for professional services: selling intellectual capital with pricing based on the results and value it creates, not the cost or time it took to formulate.Written by veteran speaker, writer, and educator Ronald Baker, this book declares the customer as the sole and ultimate arbiter of value. It proposes a business model change from "We sell time" to "We sell intellectual capital," exploring the requirements, hurdles, challenges, and opportunities that enlightened firms transitioning to this new business model will face.Driven by theory and the actual experiences of many firms,Implementing Value Pricingfeatures seven appendixes available for download on the companion website containing checklists, strategies, sample forms, and case studies, and discusses:Business model innovationThe latest research on the history of the billable hour and timesheetsThe foundations of creating valueAn eight-step model to assist firms to implement value pricingTwo frameworks for scoping complex engagementsWhat, specifically, replaces hourly billing and timesheetsSeven appendixes available for download on the companion website—containing checklists, strategies, sample forms, and case studiesWith case studies from firms that have profitably implemented these specific ideas,Implementing Value Pricingis a practical guide for how and why to implement a business model change, create more value, and unlock the tremendous competitive power hidden in the intellectual capital of every professional firm.