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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.