The authors make a case for value driven pricing for professional services first analyzing the costs of ineffective pricing and then the key elelments of a profitable pricing strategy for professional services. The paper also introduces a framework for pricing professional services. Can an IT Organization act as a business by using professional services firms as a model? Can this framework for pricing be used for IT products and services?
This paper discusses the two steps needed to optimize pricing – and maximize value delivery – namely, understanding strategic pricing parameters and leveraging tactical pricing opportunities. Good discussion for IT as a business for the lessons apply.