October 1, 2018

Our approach to pricing: we succeed when you succeed

Jonathan Summers
Co-Founder, Chief Strategy Officer

For us, this means that you are realising business value from your projects.  So why wouldn’t we align our payment to the outcomes that matter to you?

Well, believe it or not, there are times when that kind of pricing challenges our customers too far.  Most FS procurement teams can get uncomfortable with true gain-share models.

For us, the key is to develop a commercial model with our customers that ensures our goals are aligned to your goals.  We’re confident that these models will work for you too – we can be as traditional or creative as you need. But we believe in pricing for value, not because we get asked for it, but because it’s the right way to do business in today’s world.  Here’s some example models we’ve used:

  • Outcome pricing. Where you have defined deliverables or specific outcomes, we’re happy to work as a standalone project integrated with your people or with other suppliers, and will fix or fees around those outcomes where we have suitable levels of control.  If we’re telling you we can deliver it, we’ll put our money where our mouth is.
  • Shared benefits. Have specific benefits in mind? Pay only for the value you receive! We will price around value metrics and work with you to achieve these. For example, if you have a new revenue target, rather than pay for project time, let’s agree payment as a share of that new revenue.
  • Risk and reward. Embarking on a project that has significant risk or is difficult to define?  We can create a time and materials contract with a portion of our fees at risk against the success of the project. We can agree the portion upfront based on the risk profile of the project and the level of control we have to ensure delivery. Of course, if we exceed the targets we expect a suitable reward.
  • Subscription. Are you looking for a service to roll out to the masses and want to keep the initial investment low? For example, data training services or an outsourced MI capability. We will co-invest in building the initial infrastructure, then run and manage that for you.  You just pay for the usage. Simple.

No matter how you want to approach pricing with us, you will always be talking to the real decision makers – Mudano is founder-operated, and we’re dedicated to your success. That means you are talking directly to people empowered to make creative commercial commitments.  And stick to them.

There are three ways we aim to differentiate:

  1. Start with partnership.  Ever stood back and noticed how the cultural and business environments have been shifting around us in the last few years.  Moving from global to nano: start your own business on AirBnB, Uber, Fiver by the end of the day.  Gig, Sharing,  Barter, Gift economies – new ways of doing business all around us, all replying on a spirit of partnership to succeed. That’s where we begin.  We seek mutually beneficial relationships with each side creating value for their organisation and for the other’s organisation.  What about an exchange of goods? We’ll use our services to deliver your data project for you, you give us access to financial products that will accelerate the growth of our business.
  2. Drive for win-win. This is not a shallow commitment at Mudano, nor is it a synonym for compromise.  It means that the agreement reached cannot be improved any further, that there is no further benefit to be had for you or for us.  If we don’t try to get a true win-win then we will blindly fall into tried and tested patterns of the past. Nothing will be changed.  Of course, there are times when a principled negotiation will suffice, a reasonable compromise that leaves us both feeling OK.  But why lower our aspirations from the outset?
  3. One size doesn’t fit all. Easy to say but most consulting firms can’t see beyond Fixed Price or Time and Materials constructs.  We are highly confident in our team, and our history of working innovatively with our customers.  We believe when our objectives are absolutely aligned with those of our customers we deliver our best work together. We also understand that big projects are complex, and it’s not always easy to agree those value points upfront; that’s why we’re always flexible to a commercial model which works for you.

We succeed when you succeed. Now isn’t that a fresh way of doing business?

 

 

 

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