In this episode, Wes McClure continues the interview with Kirk, discussing how he uses value pricing from the perspective of a business owner and with his team.
How do you ensure your team understands value?
* Talk about it all the time.
* Learn from experience.
* Team members can shadow on a call to learn.
* Your team will challenge you.
* Have a pricing council.
* We ask subcontractors for a fixed price, but they are usually providing an effort-based price.
* The more people there are who are looking at a project from a value perspective, the better it is for the customer.
* My team has authority to write and price under a certain dollar amount.
How does value pricing work with Agile development?
* Kirk believes in an Agile/Waterfall development process.
* Agile transfers more risk to the customer.
* You have to define your boundaries, but set a price to give you flexibility.
How has value pricing affected you and your company financially?
* A debt-free business with savings allows us to make better decisions.
* Having the ability and confidence to say no is easier when you are not “living paycheck to paycheck”.
* Collect money upfront and then work harder to serve a customer who trusts us.
* Value pricing allows you to go to conferences, work on internal projects and gives you room to experiment.
* Shift customer perspective from inputs to outputs.
* Guarantee your work.
* Team will do everything in our ability to make a project 100% successful.
* Becoming a pricing consultant came out of value pricing for my software company.
* Coaching and training offerings are coming out of the value pricing world.
* Value is subjective; every price is contextual.
Thanks to Wes McClure for conducting this interview, wesmcclure.com.