Last week, I enjoyed a wonderful dinner with my friend Ron Baker who is THE authority on value pricing.
Ron is always amazing to converse with. We share passionate opinions about the need for the value pricing message to reach not just CPAs and lawyers, but also for the message to reach other industry consultants...particularly those who still encourage, thus mislead, partners to work hard in pursuit of goals based on antiquated measurements of performance (billable hours, hourly billing rates/realization, etc) rather than metrics and goals that actually make sense such as real profitability, quality of life (and practice), customer and employee retention, etc.
Ron's working on his next book, Pricing on Purpose. In the meantime, he pretty excited to introduce the world's first CVOs: Chief Value Officers. CVOs are responsible for researching, determining and continually evaluating the value level of their firms' projects. They are each the final pricing authority in their respective firms!
He permits me to share with you an article he recently wrote on the subject. Remember the 4 P's of marketing? For years I've stood with Ron on the point that we must take the Pricing "P" back from the partners who tend to underestimate the true worth of their work.
These unfortunate people continue to base their entire livelihood on the ridiculous notion that the amount of time one spends doing work for someone is in any way associated with the actual value of that work!
They'd be so much wealthier if they put pricing back in the hands of people who know the marketplace. Ron knows...
Enjoy the article: