How Service Pricing Transformed Margins

Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers · Sep 24, 2026 · 10m · transcript

For decades, business schools taught that services were too intangible to price effectively. That changed when Accenture shifted its revenue model from time-and-materials billing to outcome-based pricing. In this episode of the Pricing Power Podcast, we look at how consulting firms are now charging for results rather than hours worked. We break down the specific mechanics of value-based contracts, the risks of performance guarantees, and why this shift is driving higher margins across the professional services sector. We also examine how software companies are adapting similar models through…