082 – Kirk Bowman – The Art of Value (@artofvalue & @JohnLeePhillips)

In this Starve the Doubts episode, Jared together with Johnny Lee Philips of Your Life Detective, interviews Kirk Bowman. Kirk is a visionary of value and owner of Mighty Data, a software company. His story of value pricing started when he made a public commitment in November 2009 to switch from hourly billing to value pricing. During the first year of the shift, revenues were increased by 56%. It then hit 79% on its second year. From then on, he became an advocate of value pricing and never went back to hourly billing. He offers consulting, coaching, and free resources at ArtofValue.com.

In this episode, you will learn about:

Items mentioned:

  • Hourly billing
  • Identifying value and setting a price
  • Tangible and intangible values provided to customers
  • Tangible value – easier to quantify
  • Intangible benefits definitely more give value – it gives additional value in life
  • Pricing of service and product
  • Figure out what’s the value it will give to the customer
  • Look for a price of the fair portion of the actual price the customer is paying for the service/product
  • Test pricing of service/product
  • Experiment, do testing
  • Labor theory of value
  • Two theories of value – economic and subjective
  • Labor Theory of Value by Adam Smith, popularized by Karl Marx is about pricing based on amount of labor used in producing the product
  • Subjective value, how customer perceives a product according to its value
  • Tips in pricing for people starting in business
  • Compare it with other products/service
  • Is it okay to start at a little bit lower price?
  • You can try “discounting”, giving it at a lower price for such a time
  • One of the common pricing techniques – bundling, selling products/services in bundles
  • Having a coach or mentor in learning the art of value
  • Look for somebody who has been where you want to go and ask how you can get there
  • Ron Baker: Implementing Value Pricing
  • Pricing is a skill that you can learn like any skill
Art of Value with Kirk Bowman

Art of Value with Kirk Bowman

Kirk recommends: Implementing Value Pricing by Ron Baker

Implementing Value Pricing

Implementing Value Pricing

Video: Kirk Bowman – Is Value Pricing Easy?

1 Comment

  1. Art of Value: Starve the Doubts #82 on January 14, 2015 at 5:28 pm

    […] March 2014, I was a guest on the Starve the Doubts podcast with Jared Easley. We discussed the principles and concepts of value […]

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