Value-Based Pricing
Setting prices based on the perceived value to customers rather than on cost or competition.
Also known as: Value pricing, Outcome-based pricing, Worth-based pricing
Category: Concepts
Tags: pricing, businesses, strategies, value, marketing
Explanation
Value-based pricing charges what a solution is worth to customers, not what it costs to produce. A $100 course that saves someone $10,000 or 100 hours is underpriced—the value far exceeds the cost. This approach requires understanding: what problem you solve, what that problem costs customers, what alternatives exist and their prices, and who values the solution most. Value-based pricing often enables premium positioning and attracts customers who value results over low prices. Implementation involves: researching customer willingness to pay, segmenting by value (enterprise vs individual), and communicating value clearly. For creators, value-based pricing means pricing to transformation delivered, not time spent or pages written.
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