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
Most service businesses raise prices 30-60% with this shift. Lose 5-10% of customers, gain 25-40% margin.
Israeli origin
How Wix, Monday, and every Israeli SaaS priced from day one - because cost-plus would have starved them.