Value Based Pricing

Understand Your Buyer > How To Convert >Value Based Pricing

What is it?

Pricing what you do based on what your offering is WORTH and not what it COSTS is a sure fire way to increase your profit margins and exude confidence in your offering.


Why does it work?

It works because it implies certainty whilst also presenting minimal risk. “If you pay £x you will get Y” is more compelling than “we charge X and we’ll hopefully get you Y”.

Charging for the result you produce and the value of the result tells your buyer that you can achieve the outcome they seek (even if it was more expensive than they anticipated)

There is a default way of thinking where we charge for hours or materials and add a margin on, but the reality is that your true worth lies in your ability to get a result, not just the time of materials you used to get there…


How can you use it?

The way to price by the result or value of the outcome –  is to know the cost of the alternatives:

  • Inaction – What happens if they do nothing?
  • Delay – What happens if they don’t take action for 6 months?
  • DIY – What happens if they try to fix it themselves?
  • FOMO – What are they missing out on by not resolving this issue.
  • Alternative solutions / competitors – A lower price isn’t always a better thing…


If you struggle with justifying a higher price then this resource will help you. And if your offering is an intangible service then this resource will help you too.


See also


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