Comments on: Pricing strategy from a baseball perspective http://ariestechblog.com/2009/05/22/pricing-strategy-from-a-baseball-perspective/ Creating Wealth for Our Customers Tue, 29 Nov 2011 18:59:05 +0000 hourly 1 http://wordpress.com/ By: John Shaver http://ariestechblog.com/2009/05/22/pricing-strategy-from-a-baseball-perspective/#comment-10 Mon, 01 Jun 2009 17:27:56 +0000 http://ariestechblog.com/?p=76#comment-10 Ted,

Thanks for the feedback.

The revamping of our pricing model has indeed led to sales increases.

In the IT consulting world, the traditional approach to pricing is to bill customers based on a time unit. The customers hate it because they are taking all of the risk for budget overruns.

As Ron Baker at Verasage (www.verasage.com) likes to say: Through risk comes reward. We made the conscious decision to take on the risk for all of our projects.

By taking on that risk and changing our pricing model, we have received projects from customers that we would definitely not have received in the past due to the pricing uncertainties of the old model.

]]> By: Ted Hurlbut http://ariestechblog.com/2009/05/22/pricing-strategy-from-a-baseball-perspective/#comment-9 Sun, 31 May 2009 03:59:21 +0000 http://ariestechblog.com/?p=76#comment-9 I would caution to be sure that your pricing practices don’t leave you with unsustainable margins. In the retail world, unsustainable margins are just as damaging as sales declines. In this environment, pricing is likely only to stem the tide of sales decreases, not generate increases.

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