Episode #402: A Pricing Miscellany

Over the past few weeks, Ron and Ed have collected a few pricing related items including some listener email and podcasts that raise some interesting questions about value and subscription base pricing. This episode addresses all that and more.

Use these show notes to follow along with the audio…

  • We’ve had a bric-a-brac, a potpourri, and…..miscellany. All show titles with a grab bag of topics. Today’s miscellany is all about pricing.

  • Stay tuned for some upgraded technology that will let our listeners (our AMAZING listeners) call in and talk LIVE on the show with Ron and Ed.

  • We started the show off today with a great comment/question from Mark Stiving, former TWO time guest — episode 246 and 348

  • Billing by the hour leads to customer surprises. “The lawyer never told me it would be $100k.” The Professional Pricing Society is on a crusade to bury the billable hour.

  • There is a scene in The Firm with Tom Cruise in which he is called out for billing 33 hours in a month. Cruise remarks, “That’s what you were billed?” The customer, “You don’t look at the bill?” Cruise, “I just submit my timesheets.”

  • We’d like to give a shout out to Mark Gandy at CFOBookshelf.com. He’s a great Patreon member (Patreon.com/TSOE) and at a certain level, you can get a shoutout as well.

  • Subscription pricing blows up lots of issues associated with scope of work. Most importantly, it de-emphasizes scope. The more complex the project, the more benefit you will see from the subscription model.

  • It’s Value Pricing…not value billing. Billing takes place in arrears.

  • One of our listeners sent in a great email about subscription pricing. Among other things, it turns out he has been subscribing to his veterinarian….for 20 years!

  • For those interested in all the shows we have done on the topic of subscription pricing, check out this page on the website (under the Categories navigation menu): https://www.thesoulofenterprise.com/subscription-model

  • So what is considered subscription pricing? Ron shared a top 10 list today, including that It’s a periodic payment for recurring (increasing) value. “You’ve gotta bake in plussing.”

  • Subscription pricing is also…

    • Frictionless interaction

    • Convenient - you have to save the customers time and hassle

    • A lower transaction cost

    • Giving your customers insurance (What you need, you’re covered)

    • Continuous innovation

    • Focus on the relationship

  • Here’s a working definition for subscription pricing: “Periodic recurring payments for ever increasing value and serial transformations.”

  • In episode 34, we had a discussion with Joe Pine on The Experience Economy, and especially how professional firms are poised at the top of his Economic Value Progression graph, providing transformations for their customers. https://www.thesoulofenterprise.com/34

  • Ron Baker and Paul Dunn are BACK with a new book, “Time’s Up” — You can be a part of private Zoom calls and other perks simply be pre-ordering. More details are here: https://www.thesoulofenterprise.com/timesup

  • We can’t fit this in a tweet but Ron and Ed talked about THREE DIFFERENT WAYS you can incorporate subscription pricing into your firm today. Start a new firm, slowly roll it out, or rip the band-aid off. This was during segment three of the show.

  • Lions, and tigers, and bears! Or, in our case, commercial-free episodes, bonus episodes, and special events. Oh my! Only at Patreon.com/TSOE which is sponsored by 90Minds. Need a mind? Hire one at 90Minds.com

  • RateThisPodcast.com/TSOE - What do you think you can do there in 15 seconds or less?

  • It’s really hard for a business to disrupt itself. REALLY hard. When thinking about the options for transitioning to subscription pricing, option A discussed today (a new entity) gives you the freedom you need.

  • Why does Ron want Apple to shift to a subscription? Why is it better to rent a product instead of buying one? Many think of it as a lease mindset. That might be a barrier/issue for some in terms of their thinking. “Plussing” is a much better approach/mindset.

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention. 

Click the “FANATIC” image to learn more about pricing and member benefits.