Key pricing principle – result first.
Even if different services have different short term goals, all activities in commercial company are aligned with the main goal – the long term profitability and usually it is not so difficult to link impact of these activities with the main goal.
The structure of pricing is rather simple:
- 1st part of compensation is dedicated to cover costs of situation analysis: it can be traveling and accommodation costs related to the visit of potential customers or suppliers, market research information purchasing, etc. This fee serves as deposit to prove purchaser's intentions and motivate seller for situation analyses.
- 2nd part of compensation is a bonus for commercial success. It can vary from 5 to 20% and depends upon positive result, would it be discount from equipment purchasing, profit or gross margin increase, net cost decrease, market share increase, etc.
As known, result usually is a long term expression and I'm pleased to inform you that bonus is payable as soon as positive result becomes a reality. This rule strengthens personal responsibility and motivation to reach the maximum and improves co-operation between seller and buyer during all project term.