Captain’s log, stardate 20210825
Samuel Thomas asked on Twitter:
Does value based pricing work best for those in the cream of their field or also for consultants starting out as well?
Value pricing works best when:
DESIREwhat you offer
MONEYat their disposal
These three components are what I call my “Max Price Formula”, which looks like this:
(DESIRE * MONEY) / OPTIONS
In my experience, both newbies AND veterans can have low scores on their Max Price Formula calculations.
To make matters worse, you only have to be deficient in one of them to collapse your max price.
IF your ideal buyers DON’T greatly DESIRE what you offer...
OR your ideal buyers DON’T have a lot of MONEY at their disposal...
OR your ideal buyers have LOTS of available OPTIONS...
THEN value pricing isn’t going to deliver as high a profit as it otherwise would.
(It’s not that you can’t value price, it’s just that it might not be worth the trouble until you improve your Max Price Formula inputs.)
What really matters isn’t how long you’ve been in business.
What really matters is that your Max Price Formula inputs are excellent.
If they are, then value pricing can be extremely profitable for you.
P.S. The next session of The Pricing Seminar is launching in September.
If you’re ready to start getting paid what you’re worth, add your name to the announcement list so you don’t miss out:
Get Notified »
I hope to see you there.