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Praise for Implementing Value Pricing: A Radical Business Model for Professional Firms
"Ron Baker is the most prolific and best writer when it comes to pricing services. This is a must-read for executives and partners in small to large firms. Ron provides the basics, the advanced ideas, the workbooks, the case studies—everything. This is a must-have and a terrific book."
—Reed K. Holden, founder and CEO, Holden Advisors, Corp., Associate Professor, Columbia University www.holdenadvisors.com
"We've known through Ron Baker's earlier books that he's not just an extraordinary thinker and truly brilliant writer—he's a mover and a shaker on a mission. This is the End of Time! Brilliant."
—Paul Dunn, Chairman, B1G1 www.b1g1.com
"Implementing Value Pricing is a powerful blend of theory, strategy, and tactics. Ron Baker's most recent offering is ambitious in scope, exploring topics that include economic theory, customer orientation, value identification, service positioning, and pricing strategy. He weaves all of them together seamlessly, and includes numerous examples to illustrate his primary points. I have applied the knowledge I've gained from his body of work, and the benefits to me—and to my customers—have been immediate, significant, and ongoing."
—Brent Uren, Principal, Valuation & Business Modeling, Ernst & Young www.ey.com
"Ron Baker is a revolutionary. He is on a radical crusade to align the interests of service providers with those of their customers by having lawyers, accountants, and consultants charge based on the value they provide, rather than the effort it takes. Implementing Value Pricing is a manifesto that establishes a clear case for the revolution. It provides detailed guidance that includes not only strategies and tactics, but key predictive indicators for success. It is richly illustrated by the successes of firms that have embraced value-based pricing to make their services not only more cost-effective for their customers, but more profitable as well. The hallmark of a manifesto is an unyielding sense of purpose and a call to action. Let the revolution begin."
—Robert G. Cross, Chairman and CEO, Revenue Analytics, Inc. Author, Revenue Management: Hard-Core Tactics for Market Domination www.revenueanalytics.com
- Sales Rank: #164949 in Books
- Published on: 2010-12-28
- Original language: English
- Number of items: 1
- Dimensions: 9.30" h x 1.40" w x 6.30" l, 1.32 pounds
- Binding: Hardcover
- 368 pages
From the Inside Flap
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 Pricing demonstrates 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 Pricing features seven appendixes available for download on the companion website containing checklists, strategies, sample forms, and case studies, and discusses:
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Business model innovation
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The latest research on the history of the billable hour and timesheets
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The foundations of creating value
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An eight-step model to assist firms to implement value pricing
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Two frameworks for scoping complex engagements
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What, specifically, replaces hourly billing and timesheets
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Seven appendixes available for download on the companion website—containing checklists, strategies, sample forms, and case studies
With case studies from firms that have profitably implemented these specific ideas, Implementing Value Pricing is 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.
About the Author
RONALD J. BAKER is the author of Professional's Guide to Value Pricing, Sixth Edition; The Firm of the Future; Pricing on Purpose; Measure What Matters to Customers; and Mind Over Matter. He is founder of VeraSage Institute, the leading think tank dedicated to teaching value pricing to professionals around the world.
Most helpful customer reviews
20 of 20 people found the following review helpful.
May be Radical, but Makes Sense
By Robert R. Dunford
This book has been a very great help in the process of upgrading my my consulting practice. Baker presents the idea that professional advisers should have in mind that we are (or should be) giving our clients (which he calls customers) a crowbar with which to open a treasure chest. If so, ten times the price would still be a bargain.
We should not offer our services at a cheaper price merely because, for example, we may have lower fixed overhead. Value drives price, not cost. If we have significant intellectual capital (as defined by Baker), offering it at a lower price devalues it and sacrifices a significant amount of profit.
We should focus on the totality of our services our firm provides the customer or client and consider bundling them together into a fixed price agreement, not an hourly rate agreement. The billable hour becomes the floor, not the ceiling.
Baker outlines methods of qualifying the right customers/clients, the sins of hourly billing and ways to eliminate them, how to understand the value we offer that customers seek, key predictive indicators for knowledge workers, and eight steps to implementing value pricing.
In his section on developing and pricing offerings, the author identifies several elements, any or all of which a firm's Value Council (explained in the text) may want to make part of a fixed price agreement, over and above the hourly rate, which is never mentioned:
1. Fixed Price. (A guarantee that the customer/client will not be surprised by an invoice; that all work will be authorized in advance, so that the client will be able to budget his or her professional spend with certainty.)
2. Change Orders. (This ensures customers that work will never be done without their authorization on price, terms and scope, giving them a choice on how to proceed.)
3. Service Guarantee. (An overt statement that your project will create value three to ten times greater than the cost or the customer doesn't pay.)
4. Price Guarantee. (The customer may ignore any invoice they receive for which they did not authorize price, payment terms and scope. The customer will never be surprised by an invoice because all work is priced in advance.)
5. Unlimited Access. (The customer is granted unlimited phone calls and meetings to discuss whatever the customer wants.)
6. Payment Terms. (Financing plans.)
The subtitle of Baker's book indicates the concept of value pricing is radical. It may be radical, but after devouring the book, it makes a lot of sense to me.
14 of 14 people found the following review helpful.
A Must Read for Any Professional
By Amazon Customer
This is the third book by Ron Baker that I have read. I am a lawyer, and I have found all of his books to be invaluable to my practice. The latest book, Implementing Value Pricing, goes will beyond the theory (which I find fascinating), and provides lots of hands-on, practical advice. I am not a big believer in business or self-help books, but Baker's books have really made a dramatic impact on my practice. Buy it, read it, implement it. You will be very happy that you did.
9 of 9 people found the following review helpful.
Implementing Value Pricing
By Steve Givens
Implementing Value Pricing should be required reading for all accountants. The book does a great job of blending theory, strategy, and implementation. I found the section on Value Identification to be especially useful and of great benefit to my firm and customers. I give this book my highest recommendation! Steve Givens, Managing Partner - Ryun, Givens & Co., PLC
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