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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.
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