Conference Presentation

Value Pricing in Professional Services

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In 2014 the TSIA Market Rates Study gathered detailed rate and pricing practices information about 28 PS organizations in tech companies: hardware, software, and SaaS. During this workout session we will raise some provocative questions raised by the study and discuss their implications for value-based pricing. Here are a few questions:

  • In the eight-year history of the rates study, 2014 showed the biggest uptick in movement to market-based or value-based pricing. What are the implications?
  • PS rates across all positions vary by as much +/-$200 per hour, i.e., a PM rate may vary from $150 to $350 per hour in the US. What single variable explains that variation, and what does that say about the price-value relationship.
  • Discounting is prevalent in many PS organizations. Does discounting increase close rates? What explains higher levels of discounting? What are the business implications?

 

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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