My Insights Sessions

Here are the sessions that I am facilitating or on a panel. Please note the the 4pm session on Tuesday is only open to folks who have already attended Value Pricing (now Pricing with Purpose) Boot Camp.

Tuesday, May 12, 2009
11:00 AM Governor’s B GEN12 – Issues List Management (or How to Replace Time Sheets With Something That Actually Matters to Your Customers)
2:15 PM Governor’s C GEN16 – Building Community: A New Paradigm
4:00 PM Bayou B GEN23 – For Value Pricing Boot Camp Alumni Only
Wednesday, May 13, 2009
8:15 AM Canal E GEN25 – Around Your Business in 60 Minutes
9:30 AM Governor’s C GEN28 – The Two A’s of Consulting: Authenticity and Altruism

Thursday, May 14, 2009

1:30 PM Presidential C&E GEN34 – Moving Toward the Firm of the Future
3:15 PM Presidential C&E GEN37 – The Last Roundup: So What and Who Cares?

Pricing is not pretty

Setting price is more art than science. It is often times messy business, but it is always an incredible exercise in creativity.

This video is presented tongue in check, but as those of you who have set price using pricing on purpose will see, it sure feels like this sometimes.

Enjoy!

Customers do not care about your costs

Kodak in a recent open letter to their customers announced changes to their terms of service for their Kodak Gallery on-line service. It has been hailed in the Twitterverse as an example of how to communicate change to customers.

While I admire Kodak for their openness, I have sharp criticism for the core message. Essentially, they are saying that the must raise their prices to offset costs. Who cares? Certainly not their customers, nor should they. It is not the responsibility of customers to cover a seller’s cost. Should consumers pay more for General Motors cars just because they have a higher cost structure than Toyota? (In essence, the government has told you that yes you are and oh, by the way, even if you never bought a GM car you need to pay for one anyway, but that is another post.)

Kodak should instead focus on the value they are creating through the service and create a pricing model that attempts to capture this value. Kodak is attempting to regroup after years of denial that the photo industry was going/has gone digital. They have been somewhat successful, but they clearly still do not get it. Being in business is about value creation, not cost recovery or profit without creating value.

I tweeted this last week – “The problem occurs when companies focus on increasing or maintaining profit while not increasing the value they provide to customers.” I believe the moment a company pays more attention to cost structure and maintaining profitability rather than focusing on value creation is the moment that they begin to die.

The billable hour is about cost recovery not about creating value for customers. Please take heed professional firms. You are dying you just don’t know it.