The Five Cs of Value

BY RONALD J. BAKER

Editor's note: This is a Web-exclusive exhibit for "Pricing on Purpose: How to Implement Value Pricing in Your Firm."

For a firm to price on purpose, it must understand the Five Cs of Value:

1. Comprehend value to clients.

2. Create value for clients.

3. Communicate the value you create.

4. Convince clients they must pay for value.

5. Capture value with strategic pricing based on value, not costs and efforts.

These five components determine the wealth-producing capacity of any firm, and will drive internal profits in the long run. 

 

SPONSORED REPORT

How the election may affect taxation of business income

This report summarizes recent proposals to reform the U.S. business income tax system and considers the path to enactment of any such legislation.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

Did you follow 2016’s biggest accounting news?

CPAs will remember 2016 as a year of new standards and new faces. How well did you follow the biggest accounting events? The 7 questions in this quiz will help you find out