Capturing the unique value of services: why pricing of services is different

Much attention has been paid to the pricing of goods, but services now constitute almost half of the US economy and they have their own pricing requirements. Services differ from goods in that the choice of pricing structure is more fluid, as for example in determining the unit of charging. In addition, services tend to be more variable in quality because they are impacted by unique customer needs and environment. Thus, a framework for taking into account quality differences (risks) is integral to the price structure.