February 28, 2020
Ideal conditions for value pricing
Technically, you could value price anything, but in practice it probably makes sense to use it only in particular circumstances.
For example:
- A successful U.S coffee shop chain has a strategic directive from their CEO to expand into China. You are a U.S. expat living in Beijing who wrote the definitive book on Chinese coffee/tea culture. This is a GREAT FIT for a value priced engagement because you are the authority on the subject and they could be facing a potentially disastrous roll out. Literally billions in cash and brand equity could be lost on a botched expansion.
- A homeowner has a clogged toilet in his powder room. You are a local plumber. This is NOT A GREAT FIT for a value priced engagement because loads of people are qualified to unclog a toilet and the risk of disaster is very low.
Moral of the story:
The best time to use value pricing is when someone is facing a hugely risky undertaking that involves something that you are the go-to person for.
Yours,
—J