Module 2: Value-Based Pricing and Service Packaging

Value-Based Pricing: The Ultimate Profit Strategy

Preview · ~13 min read

Moving from Cost-Plus to Value-Based

Cost-plus pricing (cost + margin) is based on your costs. Value-based pricing is based on the value you deliver to the customer. The gap between these two approaches is the most significant profit lever most small businesses have never pulled.

How to Find Your Value-Based Price

Step 1: Identify the Job Your Customer is Hiring You to Do

What problem does your customer solve by hiring you? What are the stakes?

Example: A plumber fixes a burst pipe that would cost $15,000 in water damage if ignored. The value of the plumber's service isn't the pa

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