The Professional's Guide to Value Pricing 2000

by Ronald J. Baker

Chapters 1 through 5 of the book cover a history of the accounting profession and move into why people buy what they buy, and how much they will pay. Chapters 6 and 7 challenge the 40-year-old practice of hourly billing. Chapter 8 looks at price psychology and at why professionals suffer from write-downs. In Chapters 9 through 13 you will find alternative to the hourly billing method that are superior in obtaining the value for the services provided. Chapter 14 reinforces the importance of customer service and loyalty. Chapter 15 is about making the transition from a compliance CPA to a consultant. Chapter 16 discusses the morality of hourly billing vs. Value Pricing, along with some of the ethical quandaries that attorneys are struggling with as they shift away from hourly billing. In Chapter 17 the critical link between a professional's level of self-esteem and the ability to Value Price is explored. Chapters 18 and 19 are for those who want to delve deeper into theory and law and cover anti-trust policy and price theory. Chapter 20 concludes with some thoughts regarding the death of the Almighty Hour and whether or not Value Pricing is a fad that will disappear or a portentous "paradigm shift" that will permanently alter the way in which professionals price their services.

Genres: Business

Paperback

First published December 31, 1999

Reviews

[Elizabeth · Rating 5 out of 5]

Between this and Baker's other book, Implementing Value Pricing, this is more theoretical. I read this first and am glad I did, but if you're looking for more actionable information and need quick answers to how to make the switch to value pricing, start with the other one.

This book goes into great depth on the history of hourly billing, the reasons it is so prevalent, and the issues it causes in today's professional environments. If you or a partner have any doubts on whether or not value pricing is a solid model, make this your bible. Baker makes it very clear throughout: hourly billing is broken.

As dry as you would think a book about billing (for lawyers and accountants, no less) would be, his style and the stories he interjects kept me interested until the end. I highly recommend anything by Ron Baker, and this book was no exception.

"You will never get paid more than you think you are worth."

[Jeanna · Rating 5 out of 5]

Klavan debunked the myth instead of perpetuating. In this book there is a line that reads something to the effect that "the second book in a series is never as good as the first or third one." Wrong! The first book was good, but this one was amazing. Charlie is a great character. The truths in this book are so great. I just finished it and am beginning the third book immediately.

[Joel Ungar · Rating 5 out of 5]

This book has changed how I practice and continues to influence me every day. I've used many of the ideas, letters and other tools that came with this book