Implementing Value Pricing

Praise for IMPLEMENTING VALUE PRICING A Radical Business Model for Professional Firms "e;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."e; Reed K. Holden founder and CEO, Holden Advisors, Corp., Associate Professor, Columbia University holdenadvisors.com "e;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."e; Paul Dunn Chairman, B1G1 b1g1.com "e;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."e; Brent Uren Principal, Valuation & Business Modeling Ernst & Young ey.com "e;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."e; Robert G. Cross, Chairman and CEO, Revenue Analytics, Inc. Author, Revenue Management: Hard-Core Tactics for Market Domination

Praise for IMPLEMENTING VALUE PRICINGA 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 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¯® 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¯® 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

Foreword.Preface.About This Book.About the Web Site.About the Words Used in This Book.Acknowledgments.About the Author.PART I A RADICAL BUSINESS MODEL.CHAPTER 1 The Firm of the Past.CHAPTER 2 The Firm of the Future.PART II FOUNDATIONS OF CREATING VALUE.CHAPTER 3 Why Are We in Business?CHAPTER 4 A Tale of Two Theories.CHAPTER 5 Four Ps and Five Cs.CHAPTER 6 What People Buy.CHAPTER 7 How People Buy.CHAPTER 8 Your Firm's Value Proposition.CHAPTER 9 The Consumer Surplus and Price Discrimination.CHAPTER 10 Macro Pricing Strategies.CHAPTER 11 Price the Customer, Not the Service.CHAPTER 12 There Is No Such Thing as a Commodity.CHAPTER 13 Baker's Law: Bad Customers Drive Out Good Customers.CHAPTER 14 Value Pricing and Self-Esteem.CHAPTER 15 Ethics, Fairness, and Value Pricing.PART III THE GENESIS AND CONSEQUENCES OF HOURLY BILLING AND TIMESHEETS.CHAPTER 16 A Brief History of Hourly Billing and Timesheets.CHAPTER 17 The Deleterious Effects of Hourly Billing.PART IV WHAT REPLACES HOURLY BILLING AND TIMESHEETS.CHAPTER 18 Why Carthage Must Be Destroyed.CHAPTER 19 Price-Led Costing Replaces Hourly Billing.CHAPTER 20 The Wrong Mistakes.CHAPTER 21 Who Is in Charge of Value?CHAPTER 22 Measure What Matters to Customers.CHAPTER 23 Firm-wide Key Predictive Indicators.CHAPTER 24 Knowledge Worker Key Predictive Indicators.CHAPTER 25 After Actions Reviews.CHAPTER 26 O'Byrne & Kennedy: A Firm of the Future.PART V EIGHT STEPS TO IMPLEMENTING VALUE PRICING.CHAPTER 27 The Eight Steps at a Glance.CHAPTER 28 Step One: Conversation.CHAPTER 29 Step Two: Pricing the Customer: Questions for the Value Council.CHAPTER 30 Step Three: Developing and Pricing Options.CHAPTER 31 Step Four: Presenting Options to the Customer.CHAPTER 32 Step Five: Customer Selection Codifi ed into the Fixed Price Agreement.CHAPTER 33 Step Six: Proper Project Management.CHAPTER 34 Step Seven: Scope Creep and Change Orders.CHAPTER 35 Step Eight: Pricing After Action Reviews.PART VI INFLECTION POINT.CHAPTER 36 No One Can Forbid Us the Future.CHAPTER 37 Declaration of Independence.Bibliography.Index.