Value-based pricing isn’t a new idea. For years, commentators have been citing performance-based pricing as the next big thing – imperative even, for agency growth. As far back as 2012, a CMO survey found that a majority of marketers were not satisfied with the processes in place to evaluate the effectiveness of their chosen agencies.
In 2018, we wrote about changing approach when it comes to pricing. That agencies who successfully work out what’s next for their pricing, compensation and profitability models will be the ones to survive turbulent times.
Ron Baker is one of the world’s leaders when it comes to pricing professional services. He has several books on value-based pricing including: ‘Pricing on Purpose’ and ‘Implementing Value Pricing’.
At the Think: Long Summit on creative longevity, where he was a guest speaker, he said “bury the timesheet and billable hour. We can’t use the time to measure the worth of talent and creativity and innovation. It’s the wrong measuring stick, yet we are so committed to this.”