For example, if a client wants a faster turnaround time for a project, they might offer to pay an additional fee. For example, if you're using an advanced tech tool stack to build a client’s website, and this tool stack simplifies post-development website management, you can set a higher fee for this project using value-added pricing.Ĭlients might also suggest value-added prices. Value-Added Pricingīusinesses set value-added prices based on the extra value they think their services deliver to clients. For example, an experienced web developer who specializes in building eCommerce websites might charge more than a generalist developer for an eCommerce website project because of niche expertise.Ĭonsider factors like experience, results you’ve achieved for past clients, and specialization when setting good value prices for your services. Productized businesses can implement two types of value-based pricing: Good Value PricingĪ good value price is based on the actual quality of the service you provide to your clients. Value-based pricing means pricing your productized services based on their qualitative benefits to the customer - rather than how much time or resources it takes to deliver the service.įor example, instead of charging per word or by the hour for writing an article, an agency can fix a value-based price because of their subject matter expertise, search engine optimization knowledge, and overall industry clout. In this article, we will show you how value-based pricing works for productized services businesses, plus real-life business examples you can learn from. Value-based pricing is a better option for a productized services business because it increases your brand value and allows you to focus on quality over quantity. ![]() ![]() But a cost-plus pricing strategy can be ineffective because it only accounts for production costs - like software subscription fees and employee salaries - and ignores the value that clients get from your services. ![]() Many productized service businesses adopt cost-plus pricing because it’s a simple way to determine how much to charge for a service.
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