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.