Pricing Structure Pay-What-You-Wish vs. Consulting Model
What are the key differences between BrainStore's Pay-What-You-Wish-Model and the classical Consultancy model?
Pay-What-You-Wish
BrainStore and the customer negotiate service specs based on a clear briefing. Value is provided. After receiving the results and the report the customers has 2 days of time to reflect on the value and to set the price. There is no minimum and no maximum price. The customer communicates the price and BrainStore sends an invoice.
Classical Model
The Classical Model is based on fixed day rates or hourly (which might depend on the level of seniority). The customer and the consultancy agree on a number of days/hours for the services to be provided.
Topic
Pay-What-You-Wish
Classical Model
The Pay-What-You-Wish model is very much in line with the mindset of Agile Working. At BrainStore, we work in cycles with clearly defined value increments. We set the scope of the next cycle based on the outcome and the experiences of the previous cycle.
The Consultancy focuses on large and long projects involving many consultants. This generates the most revenue. Not very lean in a fast-moving world.
The Pay-What-You-Wish model is very simple. The BrainStore partner is responsible for defining the scope of a cycle. The customer is responsible for reflecting on the value and setting a fair price. Collaboration can start and grow.
A full-scale agreement of the project scope needs to happen before you get started. This includes making many assumptions about scope, resources, and outcome. This is not very efficient in fast-moving environments.
The focus of collaboration is on creating value for the customer in a straightforward way. And having a good time doing so.
In the classical model the might be conflicting interests, when it comes to easy solutions. Making things look complicated and adding additional loops is good for business.
Changes to the project scope can be instantly integrated in the collaboration process.
Changes to the project scope can lead to lengthy discussions and might require renegotiation and reapproval of the agreement.