August 25, 2021

Can newbies value price?

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?

Great question!

Value pricing works best when:

  1. Your ideal buyers greatly DESIRE what you offer
  2. Your ideal buyers have a lot of MONEY at their disposal
  3. Your ideal buyers have few available OPTIONS

These three components are what I call my “Max Price Formula”, which looks like this:


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.

For example:

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.