Presentation on how to set price for a professional knowledge firm.

1. How to Set Price
Ed Kless
Senior Director, Partner Development
and Strategy

2. Presuppositions
• Defined value
• Completed a scope

3. Develop Options
E D S
•B+
C •B+ •1 hour
•Convert…
•RQA •4 SR
•Integrate…
•A+ •A +
B •4 hour
•BPR •Provide…
•2 SR
•SRC •Develop…
•PC
A •Install… •8 hour
•NA
•Train… •1 SR
•SoF

4. Neinbach’s Model
WA HF PF
C
B
A

5. Questions to ask before setting price
• What does the customer think the value of our solution is?
• Have we done a complete scope document/project plan?
• With whom on organization chart am I dealing?
• Who referred this customer to us? Why were we referred in the first
place?
• Do they have any time sensitive deadlines for the completion of this
project? Why do they need to do it now and not in six months?
• Who’s paying for the service? Are they spending other people’s money?
• Do we have any competitors? If so, who? What price information do we
have about these competitors?
• How profitable is customer’s company? How long have they been in
business?
• How busy are your resources?
• Have they engaged with someone else prior to us to do similar work? Who
was prior firm and why are they changing?
• How sophisticated is the customer?
• Does customer add to firm’s skills or markets?
• Do we like this customer? What is the state of their restroom?
• How do we help reduce the customer’s risk?

6. Van Westendorp’s Model
Too
Expensive Cheap Too cheap
expensive
C
B
A

7. The Proposal
Item $
•G+
V •Convert…
•Integrate…
•T+
G •Provide…
•Develop…
T •Install…
•Train…