Value-Based Pricing: Charge for Impact, Not Cost
Value-based pricing anchors your price to the customer's perceived benefit, not your production costs. It's used for unique goods like art or software where value is high. The main footgun is assuming value instead of researching customer willingness to pay.
Value-based pricing flips the script: you charge what the market will bear, anchoring your price to the customer's perceived benefit, not your internal costs plus a margin. It's about their willingness to pay for the outcome you provide. This strategy shines for highly differentiated products where value is subjective or disproportionate to production cost, like enterprise software or a famous painting.
Read the original → Wikipedia: Value-based pricing
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