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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.
President, Value and Pricing Partners
Publish Date: May 8, 2019
TSIA is well worth the investment. This is the one place where you can come and get a fusion of ideas that you can then marry up to the goals and objectives of your organization and boil that down into several actionable plans that you can implement over the next 6 months to a year.
Peg Rodarmel, SVP, Subscription Services, Infor
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