The Art and Science of Ruby

Share this post

What is value-based pricing?

theartandscienceofruby.com

What is value-based pricing?

Baz
May 17, 2018
Share this post

What is value-based pricing?

theartandscienceofruby.com

If you think back to our three gardeners, earlier this week, the third one had the most compelling pitch for winning the work.

Gardener number one just gave an hourly rate. No idea how much it would be each month or what you would get for that.

Gardener number two explained what the cost would be most months "to keep things tidy", but left some variability open, if I decided that I wanted some changes making.

Gardener number three basically said "look, you've said you're not really interested in gardens, you just want somewhere nice. I'm the expert here, leave it to me, I'll look after everything for you, so you don't even need to think about it".

Gardener number three wasn't selling the benefits of their service. They were selling value.

Normally value is calculated as a price, but in this case, it's the removal of a worry. A weight off your mind. "Just leave it to the expert".

And that's why number three made such a compelling pitch. And why number three can charge so much more.

Take action What value does your product or service give?

Share this post

What is value-based pricing?

theartandscienceofruby.com
Comments
TopNew

No posts

Ready for more?

© 2023 EchoDek Ltd
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing