Development of Value-Based Pricing Model for Software Services

In an effort to improve profits, most contemporary businesses are implementing operational cost based engineering initiatives and measures for pricing services. However, service provision requires business executives to have a comprehensive understanding of the meaning of dasiavaluepsila as a guide to strategically price services in order to improve profitability. This paper makes an effort to present a theory of value - as a customer prerogative of service utilisation. There search aims at developing a pricing model to utilise,communicate and capture the value of a service provided by a service provider. It takes a new approach of focusing on the external value as perceived by the customer and advocate matching price to value. The paper helps both; the customers and the service providers to achieve business growth by commanding the right price for the software services. The ultimate goal is to match the price the customer pays for a service expected to deliver outstanding value.