A SERVICE PRICING CHECKLIST.

Soft-Letter, December, 2000

If there's anyone who understands the arcane art of how to price services, it's Al Hahn. Hahn's consulting firm has spent more than a decade fine-tuning service and support programs for literally hundreds of software, hardware, medical, and office equipment companies; Hahn's client files almost certainly hold more statistical data about service pricing than any other research firm in the industry.

"If there's one thing all this data shows," says Hahn, "it's that the pricing of intangible services is a very different problem from the pricing of products. And that's probably why so many people underprice services like support and training."

In fact, Hahn says, many technology companies rely on little more than seat-of-the-pants models for service...

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