pricing
Value-Based Pricing
Replace cost-plus with value-anchored pricing.
2-3 hours to redesign one service line.
What it is
Tool that helps you calculate the value you deliver to customers, then anchor pricing as a percentage of that value (typically 10-20%).
When to use it
Before launching a new service. When haven't raised prices in 12+ months. When customers consistently say 'yes' too quickly (sign of underpricing).
How it works
- 1.Define the customer's specific outcome (revenue lift, cost reduction, time saved)
- 2.Estimate dollar value over 12 months
- 3.Price at 10-20% of first-year value
- 4.Build proposal around the outcome, not the hours
Outcome
Businesses that make this shift raise prices substantially, lose fewer customers than they expect, and gain more margin than the revenue those customers represented. The tool shows you that trade on your own numbers before you make it.
Israeli origin
How Wix, Monday, and every Israeli SaaS priced from day one - because cost-plus would have starved them.