Value Pricing
Setting a price for a thing based on the value it creates for the buyer. A value-priced fee is typically X percentage of the value to the buyer of whatever they buy, such as 1% or 50%.
Value pricing differs from
- commodity-pricing strategies
- hourly pricing (aka “hourly billing”)
- various fixed-fee pricing approaches
Value pricing is determined through conversation and negotiation but is completely different from Value Selling.