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Embracing new pricing models in the age of disruption | The Future of Commerce

Digital disruption is changing how the professional services industry does business. This includes the restructuring of standard time and materials pricing models.

Established companies have a hard time understanding why this model is a thing of the past. What it all comes down to is that customers have become savvy forward thinkers. They embrace the new digital era and expect service providers to be just as savvy and innovative. New startups entering the game are giving customers what they want. They are disrupting the industry and forcing incumbents to catch up or fall behind.

One way to stay innovative is to restructure outdated time and materials pricing models. While these simple models have worked well in the past, outcome-based models are the new standard. While outcome-based billing is more complicated for service businesses, many are making it work.

Consider how the transportation, legal, and consulting industries are making new models work for them. Digital disruption of the services industry is inevitable. Adapting to new ways of doing business now will signal to customers that you are moving forward and adapting to their needs.

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Embracing new pricing models in the age of disruption.

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