Value-Based Pricing

Setting your price based on the perceived value and outcome your product delivers to the customer, not on your costs or competitor prices.

Value-based pricing is the most profitable pricing strategy. If your product saves a client £5,000/month, charging £500/month is not expensive. It is cheap. The price reflects the return.

A business coach charges £3,000 for a 3-month programme. Her clients typically increase revenue by £15,000-£30,000. At 5-20× ROI, £3,000 feels underpriced, not expensive.