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June 11, 2008
A Good Resource on Services Pricing
by Sridhar Ramanathan
I want to pass along to you a nice report from RainToday entitled “Fees and Pricing Benchmark Report: Consulting Industry 2008.” While it’s mainly aimed at consulting firms (marketing, IT, management, etc.) I think it has very useful insights for managed service providers (MSPs) and outsourcers. They examined hundreds of firms and found that the most profitable firms did the following:
- Establish a brand
- Establish a lead generation engine
- Create service packages
- Focus on delivery expertise
- Don’t disclose underlying fee structures, retainer details, and fixed-fee engagements
- Maintain the right focus on competition
- Employ value-based pricing
Sounds very intuitive but I can tell you that only a minority of services firms actually implement these recommendations. I think it’s worth the $345 price to get some practical tips on pricing methods. I’ll write a separate blog post soon on my own pricing strategy suggestions.
Posted June 11, 2008 | Permalink
Posted to Marketing Management