Value-Based Pricing: Is It Right For You?

 wrote this 10 months ago in Freelancer News

Value-Based Pricing: Is It Right For You? - Serve Dont Sell

Value-based pricing can be a fast path to profitability, but it's great oversold and won't apply to most. Is it right for you?


I have always used value-based priced. Never felt comfortable with hourly rates as basically if rewards doing the job slowly and then there is admin overhead because how does the client really now how much time you spent. If I'm an expert in something and can it done faster I shouldn't be penalized though you could just increase the hourly rate but people are usually scared to do that and clients see higher hourly rates as exorbitant.

I focus on the outcomes and benefits of the project and depending on the client and how important it is to solve their problem.

 I do also subscribe to Johnathan Stark's philosophy which gives good advice of the best way to go about it and strategies for communicating with client etc.

I bill hourly. I don't do much freelance work currently (currently have 2 active projects working with friends at a discounted rate.) It may be that since it's such a small part of my revenue, I can afford to lose a bit but value-based pricing to me feels like a bit of a stretch. Charging one company $500 for a logo and another $50,000 based on their company size and not the amount of work to be done seems ethically dishonest for me.

Want to join the fun?

Sign up to join Freelancer News today and get full access to the community.

Sign Up

or Login if you already have an account.