add-ons, 2nd
added value
airlines example
in analysis of current clients
cost of, exceeding profit gained, 2nd, 3rd
definition
as good starting point for new service development
for Rocket Science work
showing price of
advice, types of
aero engines pricing, 2nd
aftercare
airlines
budget, 2nd, 3rd
vs. flag carrier, 2nd, 3rd, 4th, 5th
pricing strategies, 2nd, 3rd
loyalty schemes
pricing by client
segmentation
staff morale and customer care
aligned pricing
alternative fees
annual retainers
blended rates
capped fees
confidence in pricing
contingent fees
discounted hourly rates
fixed fees
house painting scenario
project-based costing (PBC)
success-based fees
annual price rises
annual retainers
arrogance, 2nd
Ater, I.
banking client example
‘best and final offers’, 2nd, 3rd, 4th, 5th
blended rates
bottom line
impact of increasing prices
impact of reducing overheads
impact of working harder
impact of working smarter
brands
addressing in structured way
airline industry, 2nd
car industry, 2nd, 3rd
hotel groups, 2nd
house-of-brands approach
master brand approach
supermarket, 2nd
briefs, unclear
Browne, Robert, 2nd
budgets
annual
for Rocket Science work, 2nd
safe, 2nd
working within client’s
capabilities see pricing controls and capabilities
capped fees
car analogies and examples
add-ons, 2nd, 3rd
clarity on value
differentiated service
master brand approach vs. house-of-brands approach
negotiating
penetration pricing
premium service providers providing low-cost services, 2nd
centre of excellence organisation archetype
centre of scale organisation archetype
chemistry (liking)
building
client meetings for
in pre-pitch situation
definition
as important factor for client, 2nd
link with likeability and price
in pitch situation
power of
as purchasing criteria, 2nd
for Relationship Advice wins
‘Client Clubs’
client decision making
criteria for choosing service provider
pricing issues
Relationship Advice, 2nd
Rocket Science, 2nd
Routine Work, 2nd
study data
client-driven pricing
client messaging
client satisfaction
PBC as driver of
surveys
clients
acting for liked
analysis of current
creating service tie-ins for
as differentiators, use of existing
giving options to
on historically low rates
impact of increasing prices
impact of reducing overheads
impact of working harder
impact of working smarter
involving
messaging
negotiating with strongest, at right time
persuading to pay above market rate
presenting valuable differentiation to
price sensitivity
pricing by
pricing conversations
resisting price pressure from
saving money for
segmentation
supporting in distress
trophy, 2nd
who always want to save money
competition
client messaging
cost leadership
differentiation
main strategies, 2nd
market-driven pricing
market positioning
new service launches
niche
price matching
competition-driven pricing
complex pricing
concessions, 2nd, 3rd, 4th, 5th
consolidation
consultancy training example
contingent fees, 2nd
controls see pricing controls and capabilities
corporate objectives, alignment with
cost base reduction
cost leadership
applied to work types
as competitive strategy, 2nd, 3rd
coping with ‘price buyers’
pricing
cost-plus pricing
calculation
enabling setting minimum rates
giving indication of breakeven prices, 2nd
problems, 2nd, 3rd
role in informing pricing strategy
cross-selling initiatives, 2nd
cultural fit, 2nd, 3rd
deal junkies, 2nd
debriefs, 2nd, 3rd, 4th
dedicated support organisation archetype
delivery, 2nd
differentiation
applied to work types
brand implications
car exhaust example
clients
presenting to
using existing
who want to save money
as competitive strategy, 2nd
creating savings
highest price strategy, 2nd
hospital IT system example
in hotel groups example
innovation for
KPIs for
liking as differentiator
Routine Work suppliers, advice for, 2nd
service tie-ins
value-based pricing
disaggregation of service, 2nd, 3rd
discounted add-ons
discounted hourly rates
discounts
showing
for volume
diversified firms
drivers of value
creating different services
banking client example
best ever service
lowest cost
statistics and data
creating different versions
client segmentation
creating service tie-ins for clients
focussing on extremities of price
persuading clients to pay over market rate
presenting differentiation to clients
varying scope, along with agreed price
enhancements as key to
moving from costs incurred to value delivered
price discrimination
starting point
starting with value
using existing clients as differentiator
value pricing
vs. charging by time
by work type
dry-cleaning example
dynamic pricing, 2nd
electronics industry
emotion, 2nd
exit routes
experience curve effect
external facilitators
extra costs
5 Ps of Services Pricing
fast food outlets example
fixed fees
as alternative fee arrangement
comparison with PBC
and lowballing quotes
for Routine Work, 2nd, 3rd, 4th
shortcomings
working smarter
focus see niche focus
Hanson, Bjorn
hidden resources
historically low rates (clients on)
hospital IT system example
hotel groups
extra costs and penalties
loyalty schemes
segmentation, 2nd, 3rd, 4th
house painting scenario
industry, lessons from
add-ons and aftercare
airline segmentation
changing supply dynamic
insurance
loyalty schemes
penetration pricing
price matching
pricing across product lifetime
pricing by client
unexpected extra costs and penalties
innovation, creating culture for
insurance
internal networking
Keillor, Garrison
Key Account Management (KAM)
Key Performance Indicators (KPIs), 2nd
kitchen installation scenarios, 2nd
Landsman, V.
law firm example
lemon juice case
leverage
according to work type
of data to inform decision making
effect, 2nd
strong brands as
team structure for, 2nd, 3rd
trained assistants as
use of low quotes as
lifecycle pricing
likeability, link with chemistry and price
liking see chemistry
‘losing on price’, 2nd, 3rd, 4th, 5th
lowballing
lower cost options
lowest cost services
loyalty, 2nd, 3rd, 4th
loyalty schemes
Maister, David, 2nd
management buy-outs (MBOs)
marginal pricing, 2nd
market-driven pricing
market intelligence
market positioning, 2nd, 3rd
market price, setting
market rates, 2nd
mid-transaction negotiations
milk, 2nd, 3rd
motor industry see car analogies and examples
negotiating price
emotion
historically low rates
hotel group scenario
link between price and scope
major reductions
market positioning example
procurement
negotiating with
and Routine Work
strength of relationship
small reductions
networked support organisation archetype
new service launches
discounts
joining procurement cycles
penetration pricing
pitching advice
pricing based upon closest alternative
seeing through client’s eyes
starting high
starting low, 2nd
niche focus
applied to work types
as competitive strategy, 2nd
in hotel groups example, 2nd
one-dimensionality, 2nd, 3rd, 4th, 5th, 6th
‘one-stop shop’ approach
online auctions
online training
overheads
advantage, and competing on price
of budget airlines
cost-plus pricing, 2nd, 3rd
and economies of scale
effect of company being ‘lowest price’
of flag carrier airlines
impact of price changes, 2nd
labour costs
reduction
effect on bottom line
effect on clients
effect on staff, 2nd
oversupply, 2nd, 3rd, 4th
PBC see project-based costing
pedestal selling
penalties
penetration pricing
percentage targets
performance data, 2nd, 3rd, 4th
personal reputation, 2nd, 3rd, 4th, 5th, 6th
petrol example
pitching for work
post-pitch price negotiation
for Relationship Advice
aim
link between chemistry, likeability and price
retenders
for Rocket Science, 2nd
for Routine Work
tactics
pre-meetings, 2nd
silver bullet
start of chemistry
stop/go
unclear brief
Porter, Michael, 2nd, 3rd, 4th, 5th, 6th
post-deal demands
post-pitch price negotiation
Power by the Hour, 2nd
pre-meetings, 2nd
price
annual rises in
focus on extremities of
increasing, as pricing lever
link with chemistry and likeability
link with scope, 2nd, 3rd
negotiating
as purchasing criteria
reducing, as pricing lever
varying, along with scope, 2nd
‘price buyers’
price discrimination
price matching
flag carrier airlines
genuine
partial
price maximisation, 2nd
price placebo effect, 2nd
price sensitivity, 2nd, 3rd, 4th, 5th
pricing
achieving confidence in
across product lifetime
by client
competition-driven
dilemma
ownership of
role of, in organisations
as services pricing criteria
pricing controls and capabilities
building capabilities
building controls
current client analysis
defining pricing capability
ownership of pricing
pricing organisation
reporting
responsibilities
structure
rate card
role of pricing in organisations
summary
utilisation
write-offs
pricing levers
cut prices and win more work
increase prices
effect on bottom line
effect on clients
effect on staff
impact on profitability
methods
project for profitability
reduce cost base/overheads
effect on bottom line
effect on clients
effect on staff
impact on profitability
work harder
effect on bottom line
effect on clients
effect on staff
summary of effects
work smarter
pricing organisation
reporting
responsibilities
structure
pricing skills pyramid
pricing strategy
moving to value-based, 2nd
pillars of, 2nd
how service firms compete
pricing
pricing tactics
added value, showing price of
annual price rises
being in the running
clients
acting for liked
giving options to
negotiating with strongest, at right time
supporting in distress
trophy
delivering what was paid for
differential partner rates
discounts
showing
for volume
expertise promoting
free, rather than cheap
lowballing, dealing with
lower cost options
lower rates, not less spend
market intelligence
team structure
ultimatums, dealing with
process improvement workshops, 2nd
procurement
and blended rates
creating saving for
defence of client loyalty
negotiating with
clarity on value
demands of one’s own
distrust
maintain client discussions
making best and final offer
no concessions
online auctions
post-deal demands
preparation
‘procurement grid’
separating from client
use of time
professionals, 2nd, 3rd
protection from
in Relationship Advice work, 2nd, 3rd
in Rocket Science work, 2nd
in Routine Work, 2nd, 3rd, 4th
as services pricing criteria
product lifetime, pricing across
profit maximisation
profit-sharing partners example
profits, increasing see pricing levers
project-based costing (PBC)
as alternative fee arrangement
challenge of major reduction requests
challenge of small reduction requests
comparison with fixed fee and time-based charging
for Relationship Advice work
requirements for successful
delivery
payoff
quotes, agreeing
quotes, creating realistic
scoping, proper
uncertainty, dealing with
use of exact figures
promotion, as services pricing criteria
proposal
fixed fee
highlighting main drivers of value
for Relationship Advice work, 2nd
for Rocket Science work
as services pricing criteria
specific
purchasing criteria, 2nd
quality hurdles, 2nd
quotes
agreeing
creating realistic
delivering against
facing uncertainty
lowballing
need for detailed and realistic
position in grouping of
selling
starting with new
tools for
Rangel, Antonio
rate card
‘reassuringly expensive’
Reckitt & Colman v Borden Inc.
reductions
major
minor
overhead
in spend projects
targeted
referrals, 2nd, 3rd, 4th, 5th, 6th
Relationship Advice
alignment with corporate objectives
client messaging
clients with unfair prices
competitive strategies
complex pricing
definition, 2nd
5 Ps of services pricing
fixed fees, 2nd
hidden resources
house painting analogy, 2nd
negotiating price, 2nd
PBC for, 2nd, 3rd
pitching for
aim
link between chemistry, likeability and price
pitching tactics
‘price buyers’
price not ‘the decider’
price reductions
price rises
pricing
pricing tactics
procurement, 2nd, 3rd
product lifetime, pricing across
rate card
retenders
saying no
sensitivity to client’s needs
success-based fees
track records, 2nd, 3rd, 4th, 5th
value pricing, 2nd
working harder
reputation
firm, 2nd, 3rd, 4th, 5th, 6th
personal, 2nd, 3rd, 4th, 5th, 6th
see also status
‘reshoring’
resources, hidden
retail fitters example
retainers see annual retainers
retenders, 2nd, 3rd
reward systems, 2nd, 3rd
Rocket Science
budget and value-based billing for, 2nd
charging by the hour
chemistry, likeability and price
client messaging
competitive strategies
definition
5 Ps of services pricing
leverage
liking
negotiating price, 2nd
pitching for
pre-meetings
price not ‘the decider’
price rises
pricing
client-driven
cost-plus, 2nd
involvement in competitive
procurement, 2nd
saving clients money
success-based fees
track records, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th, 9th
trophy clients
value pricing
working harder
Rolls Royce, 2nd
Routine Work
chemistry, likeability and price, 2nd
competitive strategies
complex pricing
creating best ever service
data, importance of
definition, 2nd
drivers of value approach
5 Ps of services pricing
fixed fees, 2nd, 3rd, 4th, 5th
negotiating price, 2nd, 3rd, 4th
online auctions
pitching for, 2nd
price
not the only criterion
rises
pricing
pricing tactics
procurement, 2nd, 3rd, 4th
retenders
saving clients money
success-based fees
track records, 2nd
value pricing
safe budget, 2nd
saving clients money
clients always looking to save money
consolidation
creating and sharing savings
hidden resources
KPI exercise
alignment with corporate objectives
client satisfaction surveys
managing service providers
savings achieved
pricing dilemma
proactivity and payoff, 2nd
Rocket Science
Routine Work
saying no
spend reduction projects
targeted reductions
scattergram analysis
scope
agreeing
clarity
client in control of
definition
dividing, 2nd
link with price, 2nd, 3rd
proper way to
scope creep, 2nd, 3rd
and small reductions, 2nd
varying, along with agreed price, 2nd
segmentation
airline, 2nd
car industry
of clients, 2nd, 3rd, 4th, 5th
electricity suppliers example
hotel groups, 2nd, 3rd
technology sector example
value-based, 2nd
senior sponsorship
service profit chain
service providers
best starting point
economies of scale
increasing overheads
managing
mistakes
bidding low approach
commoditisation of services
failing to consider client point of view, 2nd
historical
negotiating price, 2nd, 3rd, 4th
providing ambiguous total cost quotes
use of branding
working smarter, benefit of
service tie-ins
Shiv, Baba
silver bullet tactic
skim pricing, 2nd
spend reduction projects
staff
impact of increasing prices
impact of reducing overheads
impact of working harder
impact of working smarter
stalking horse
statistics and data
status, 2nd, 3rd, 4th, 5th
see also reputation
stop/go tactics
strategic pricing capability
success-based fees
supermarket analogies and examples, 2nd, 3rd, 4th, 5th, 6th
supersizing
supply dynamic, changing
supporting pricing capability
swaps, 2nd, 3rd, 4th, 5th, 6th
switching costs, 2nd, 3rd
tactical pricing capability
tactics
pitching for work
pricing
tangible goods
taxi meter effect see time-based charging
team size
team structure
technology sector example
time
best, to negotiate with strong clients
issue of, when pricing
use of, against procurement
time-based charging, 2nd, 3rd, 4th
total care approach
track records
adding value and demonstrating worth
in Relationship Advice work, 2nd, 3rd, 4th, 5th
in Rocket Science work, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th, 9th
in Routine Work, 2nd
trophy clients, 2nd
trust, 2nd, 3rd, 4th
‘trusted advisors’, 2nd, 3rd, 4th
ultimatums
utilisation
value-based billing
definition
options for achieving
for Rocket Science work, 2nd, 3rd
value delivered, 2nd, 3rd
value, drivers of see drivers of value
value engineering see drivers of value
value pricing
and charging by time
definition
as gold standard of pricing
opportunities for, in Routine Work
by work type
value, starting with
consultancy training example
hospital IT system example
for one-off pieces of work
Wallerstein, David
water softener case, 2nd
waterfalls
‘we are better’ strategy see differentiation
‘we are cheaper’ strategy see cost leadership
work types
definitions
5 Ps of services pricing
focus, cost leadership and differentiation applied to
price rises
value pricing by
working harder
working smarter
write-offs
