Many times in the past 12 months I’ve had conversations that go like this.
Somebody: Pricing is about calculating the price I will charge to my customers, right?
Me: Not exactly. Calculating the price is just one of the steps. There are multiple other decisions that you have to make about pricing …
Somebody: Wait, what? Why? I just want to put a price in the project proposal.
Here is a list of terms that you might have read or heard about before. People around you might even use some of them interchangeably:
Price / budget / financial proposal
All of these need to be managed as part of the overall pricing architecture.
This is a simple visual guide on the differences and the relationship between them, as I use them in my projects:
Which one would you like to know more about?