The future of pricing models in the Microsoft partner ecosystem with Ben Vollmer

#3. Ben Vollmer is a Senior Vice President at RSM US responsible for growing their Power Factory offering. He is probably best known in the Microsoft community as the former global director of Microsoft’s Dynamics 365 Field Service business. Ben’s a prolific presenter at Microsoft conferences with a reputation for helping partners level up their pricing and delivery models.Ben and I have a fascinating discussion about the evolution of pricing and how Microsoft partners and customers might exchange value. Traditionally, partners have delivered services and charged based a timesheet and a rate card. How is that model changing? One option we discuss is outcome-based pricing, but do customers really want outcome-based pricing? There are challenges here too.We also pull apart the user-story point estimation and pricing approach that Superware uses.And, we ask whether blended teams are necessary for success and how customers should eventually assume full ownership of the applications partners build.KEY LESSONSThe Evolution of Pricing Models. The conversation delves into the shift from traditional time-based pricing to outcome-based pricing and other innovative pricing models. Ben offers a deep dive into how pricing can both reflect and drive a company's culture and strategy. While value-based pricing presents opportunities, implementing it successfully remains a challenge. Empowering Customers. Ben emphasizes the importance of customer empowerment and enablement. He suggests that partners need to focus on training and ensuring clients have the knowledge to manage applications independently post-deployment. As Neil Benson notes, building empowerment capabilities could be a key area of growth for Superware, aligning with the need for blended teams and client self-sufficiency.Focusing on Micro Verticals. Ben advises honing in on micro vertical segments — niche markets where tailored solutions can bring significant value. This focus allows for streamlined implementations, enhancing client satisfaction and business predictability.TIMESTAMPS00:00 The end of traditional agile waterfall methodologies00:33 Introduction to Practice Leading and Ben Vollmer02:25 Evolution of pricing models in Microsoft partnerships02:43 How pricing drives a Microsoft partner's culture05:07 Pricing strategy for ISVs and services06:32 The shift from implementation to enablement and managed services08:05 Challenges with outcome-based pricing11:48 Discussing pricing methods tied to customer value15:48 Importance of blended teams and customer ownership18:16 Micro vertical expertise and predictable revenue for partners24:17 Necessity of enablement and training in service models30:35 Final thoughts on pricing and practice growth strategiesRESOURCESBen Vollmer on LinkedInRSM US on LinkedIn👋 LET'S CONNECT🌐 Subscribe to Practice Leading newsletter for key lesson takeaways and special event invitations🟥 Subscribe on YouTube🟦 Follow on LinkedIn🟦 Neil Benson on...