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Conference Presentation

Accelerating the Transition from Cost to Market-Based Pricing

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Cost Based Pricing (CBP) has been a staple at Microsoft Enterprise Services. As with other large firms, CBP is forcing prices ever higher without well-defined increases in perceived value delivered. To preserve pricing integrity and better align rates with market norms, Microsoft has transitioned to Market Based Pricing. An important part of this change has been collaboration with the sales organization to better tailor pricing to the needs of individual markets.   Using the TSIA Market Rates Study and working with Value and Pricing Partners, Microsoft has • Rapidly designed a new, market based pricing approach • Built a mathematical model to suggest market based prices for over 100 markets • Negotiated with sales managers to transition pricing in individual markets • Planned a governance process for assuring the new pricing would be implemented  During this talk we will describe the work process involved, challenges we faced and early results.  

Presented By:

Timothy Matanovich

President, Value and Pricing Partners

Publish Date: May 8, 2019

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