May 14, 2026

Value-based PRICING vs value-based SALES

In 2006, I thought I understood value-based pricing, but really I didn’t.

I used to do it like this:

1. I would calculate a price based on my costs (i.e., how much time I thought a project would take)
2. I would mark up my cost estimate by a LOT, like 100% or so, to calculate my price
3. I would use a value-based narrative to justify my price to the client in hopes of making it acceptable to them

So...

It was more like value-based sales than value-based pricing.

To be clear...

My price was NOT based on value.

My price was based on cost.

But sometimes I was able to justify my price using value.

Here’s the thing...

This approach was successful for me, and it might be a good stepping stone for you.

But when you finally understand what value-based pricing REALLY is, it’s a game-changer.

Yours,

—J

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