Value-Based Pricing Has Gotten Popular — But It Doesn’t Always Work. Here’s How It Could Derail Your Business.

Opinions expressed by Entrepreneur contributors are their own.

Value-based pricing has become something of a holy grail in the world of service businesses. The theory is seductive: Instead of charging by the hour or offering rigid packages, you price your services based on the value they deliver to the client. If your support helps someone generate $100k in revenue, why shouldn’t you charge $10k instead of $2k?

This approach can lead to higher margins and more premium clients, but it comes with downsides. When it doesn’t work, it can quietly eat away at your profitability, create client resentment and hold up your growth.

Related: The Price Is Right: How to

→ Continue reading at Entrepreneur

More from author

Related posts

Advertisment

Latest posts

3 key looming Trump decisions will shape the future of the economy | CNN Business

CNN  —  “It’s ultimately up to the president to decide.” That’s more or less the go-to...

Tariff disruption ripples through event industry businesses | CNN Business

Tariff disruption ripples through event industry businesses ...