With the rise of AII (Artificial Intelligence Integration), your clients’ buying behaviour is shifting from accepting an impersonal account in their inbox to highly educated, value-driven purchase considerations. It is imperative and unavoidable that we must change our sales processes to become more informative and client-centric. In the service industry, we realise that this change in our approach to sales is vital for survival in the short term, and ultimately success in the long run.
Two main pricing software options are currently available in the market and both options provide a client-centric approach:
- Cloud-based quotation software, that enables you to price for maximum profit through value pricing; and
- Automated billing systems.
Change always implies an investment. As a service delivery expert, you may generally feel estranged to the realms of sales and marketing and unable to answer critical questions:
- Which pricing software is the best investment for your business?
- How do you determine which pricing platform will compliment your sales process the best from your client’s point of view and also suit your business needs?
These two quotation systems each have their own primary benefit for both you as a service provider and your clients. They are both new concepts to the service industry, so let’s compare the pros and cons:
| VALUE PRICING SOFTWARE | AUTOMATIC BILLING SOFTWARE |
| Background and purpose | Background and purpose |
| Value pricing software uses powerful price psychology and price perception techniques that seamlessly facilitates the communication of price and value to the client. Value pricing occurs before service rendering and includes the client in the sales process. | Automated billing systems enable you to bill the client electronically with the aim of reducing outstanding payments receivable and improved cash flow. Automated billing takes place after the initial sales process (if any) and rarely involves the client. |
| Client centricity | Client centricity |
| Clients are empowered to customise their service according to their own preference and affordability. Your client feels in control. The end result is larger purchase and spend. | Quotations are calculated based on standard fees or hourly tariffs, which can be altered at any stage. |
| Interactive features in the software allow the client to control the outcome of their service offering at an optimum possible price. | The service provider determines the scope of work and price of a service, grounded on their presumption of what the client values and are willing to pay. |
| Agility | Agility |
| A value pricing platform allows you to choose from a library of pre-designed pricing templates so that you can price the services that you offer. The financial and operational benefits from using pricing templates are a result of tried and tested customisations that address client value perception and expectation at the optimal price. An added bonus – build and customise your own templates – you can price any type of service you want. | Other software limits users to choose service items from pre-loaded item lists and accommodating prices that need to be set up manually. Item prices are normally determined using standard fees, hourly rates, inflation rate increases and/or market prices. |
| Professional proposals | Professional proposals |
| Value pricing software includes smart features to promote up-selling and cross-selling to other services offered. | Other software does not provide cross-selling or up-selling abilities. |
| Timing:
Quotations can be performed literally within minutes. |
Timing:
Due to a general lack of value-based parameters, extensive input is required, which results in delayed sales responses. |
| Cloud-based | Cloud-based |
| The value pricing platform is cloud-based, which means backups of all quotes are always available and accessible from anywhere. | Most automated billing software is cloud-based and backed up. |
| Customisation | Customisation |
| Fully customisable including features such as options, packages, rewards, payment terms and add-ons. | Customisable within certain parameters. |
| Payment terms:
Payment terms, including upfront and back-end payments, can be tailored so that your clients have complete clarity over when they will pay. |
Payment terms:
It does not allow you to tailor payment terms over different periods. |
| Subscription agreement:
Cancellation can be affected at any time – no minimum contract period. |
Subscription agreement:
Debit order cancellation penalties apply. Desktop quoting software is an annual fee paid once-off. |
If you would like to price your clients with confidence and achieve higher prices, then value pricing is your option. A value pricing system will improve your client’s user experience and provide the opportunity for a value-adding conversation between you and your client. It’s simple and easy to use. Your ultimate benefit is a continuous increase in your bottom-line profit and satisfied clients.
Other quoting software mainly focus on streamlining your billing system. With value pricing, you can also achieve your automation goals. Simply link your value pricing software with your automated billing software, and voilà!
You can master value pricing by contacting our Price Consultants for a free price diagnostic session.
