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Will value pricing help increase my business profit?


Value pricing is different to both hourly billing and fixed pricing as you move away from the X amount of hours = X amount of dollars structure.


If you implement value pricing you are charging based on a desired outcome and educating your clients about the value you are providing them.


You are the expert in your field, you know what your client needs and exactly how to go about fulfilling that need.


It may only take you 10 minutes to complete a task for your client however, for them you have solved a problem. A problem that they either do not know how to solve on their own or one that they cannot stand doing the tasks in order to fix it.


There is HUGE value in this alone. Value that you should be appropriately rewarded for providing.


It is important that you recognise the value you provide your clients. It is easy to miss the impact your skills and knowledge have.


You may see these things as nothing out of the ordinary but chances are this is not  how your client sees them. There is a reason your client has asked for your help, you provide something they need.


With value pricing, the process starts before you even see your client or prospect.


You need to be really clear about your position in the market, your value and the perceived value of the person you are delivering the service.


Do you know where you stand in regards to all of these areas?


It will also come down to conversations and education around the value of your services.


  • How do you start a conversation with a prospect?
  • Are you clear as to what your services actually are?
  • Do you feel confident with the outcome you can provide?


The actual formula for value pricing is more than just concepts and perceived value. You also need to be clear on your needs to fulfil the service, your breakeven numbers, the amount of time available to you to provide the service and how it is provided.


Then look at the technical aspects of pricing. I will be sharing more information about this in future blogs.


Value pricing is one of the more complicated pricing structures.

What are your biggest frustrations when it comes to value pricing? Are you confused by the concept? Do you have specific questions?


I would love to hear from you.