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Prissättning av tjänster i byggkonsultbranschen - Införandet av alternativa prissättningsmodeller

Persson, Jenny LU and Nilsson, Emma (2010) TMA820 20101
Department of Business Administration
Abstract
Purpose: Within the construction business pricing is traditionally done at current account. The purpose of this report is to investigate why pricing levels are low within the construction consultant industry in comparison to other consultant industries, as well as to examine what affects the choice of pricing models. In addition to this the report aims to analyze pricing models used today and to develop a process according to which employees at the host-company can work in order to successfully introduce alternative pricing models. Finally, the report aims to increase awareness of the possibility of using different types of pricing models and the importance of the subject.

Method: Existing theories concerning pricing, both general and... (More)
Purpose: Within the construction business pricing is traditionally done at current account. The purpose of this report is to investigate why pricing levels are low within the construction consultant industry in comparison to other consultant industries, as well as to examine what affects the choice of pricing models. In addition to this the report aims to analyze pricing models used today and to develop a process according to which employees at the host-company can work in order to successfully introduce alternative pricing models. Finally, the report aims to increase awareness of the possibility of using different types of pricing models and the importance of the subject.

Method: Existing theories concerning pricing, both general and industry specific, were mapped out, as was the industry of construction consulting services. The result of the report is, in addition to this, based on a number of qualitative interviews carried out with employees at the host-company, with other industry players, and with employees within other industries where prices and revenues tend to be higher than within the industry of construction consulting services.

Conclusion: The report concludes that the low price and revenue levels are caused by strong traditions, the way reward systems are set up, the current owner structure, the fact that focus is put on non-business related questions and the area of competence is valued low, as well as consultants being hesitant to charging high prices.

A pricing model based on incentives is demanded by both the consultant and customer, both of whom wish that the difference in price depending on experience be larger. Alternative ways of pricing presented include additional fees being charged if the customer demands consultancy services to be performed by a specific employee. Another possibility is to use a type of subscription model, or to sell a group of consultants rather than individual consultants. The report also suggests that modular pricing should be used when a particular task is easily specified, and for additional work that can be standardized.

Difficulties that have been encountered whilst trying to bring about the usage of alternative pricing models do not have to do with the models themselves, but come about as a result of lacking communication between the consultant and the customer. Pricing models that promote an open collaboration are missing. The report presents a process that is recommended to use in order to succeed when introducing alternative pricing models. (Less)
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author
Persson, Jenny LU and Nilsson, Emma
supervisor
organization
course
TMA820 20101
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Pricing at current account, Pricing change, Construction consultant service, Pricing, Construction consultant industry, Fixed pricing, Incentive pricing set-ups
report number
193
ISSN
1651-0100
language
Swedish
id
1627707
date added to LUP
2010-07-08 17:15:30
date last changed
2010-07-08 17:15:30
@misc{1627707,
  abstract     = {Purpose: Within the construction business pricing is traditionally done at current account. The purpose of this report is to investigate why pricing levels are low within the construction consultant industry in comparison to other consultant industries, as well as to examine what affects the choice of pricing models. In addition to this the report aims to analyze pricing models used today and to develop a process according to which employees at the host-company can work in order to successfully introduce alternative pricing models. Finally, the report aims to increase awareness of the possibility of using different types of pricing models and the importance of the subject.

Method: Existing theories concerning pricing, both general and industry specific, were mapped out, as was the industry of construction consulting services. The result of the report is, in addition to this, based on a number of qualitative interviews carried out with employees at the host-company, with other industry players, and with employees within other industries where prices and revenues tend to be higher than within the industry of construction consulting services. 

Conclusion: The report concludes that the low price and revenue levels are caused by strong traditions, the way reward systems are set up, the current owner structure, the fact that focus is put on non-business related questions and the area of competence is valued low, as well as consultants being hesitant to charging high prices.

A pricing model based on incentives is demanded by both the consultant and customer, both of whom wish that the difference in price depending on experience be larger. Alternative ways of pricing presented include additional fees being charged if the customer demands consultancy services to be performed by a specific employee. Another possibility is to use a type of subscription model, or to sell a group of consultants rather than individual consultants. The report also suggests that modular pricing should be used when a particular task is easily specified, and for additional work that can be standardized.  

Difficulties that have been encountered whilst trying to bring about the usage of alternative pricing models do not have to do with the models themselves, but come about as a result of lacking communication between the consultant and the customer. Pricing models that promote an open collaboration are missing. The report presents a process that is recommended to use in order to succeed when introducing alternative pricing models.},
  author       = {Persson, Jenny and Nilsson, Emma},
  issn         = {1651-0100},
  keyword      = {Pricing at current account,Pricing change,Construction consultant service,Pricing,Construction consultant industry,Fixed pricing,Incentive pricing set-ups},
  language     = {swe},
  note         = {Student Paper},
  title        = {Prissättning av tjänster i byggkonsultbranschen - Införandet av alternativa prissättningsmodeller},
  year         = {2010},
}