Amanda NorthcuttFounder & CEO | Keynote Speaker, LevelUp · B2B sales as a solo is HARD. I’ve got you. I help consultants & coaches sell high-ticket services comfortably & confidently, while enjoying consistent, predictable revenue | Founder & CEO | Speaker |

What is value based pricing and how to use it

27 Mar 2024 · 1 min

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In this brief instructional video, the speaker explains the concept of value‑based pricing, recommending that service providers set fees at roughly 10‑20 % of the monetary value their client expects to receive. She illustrates the rule with two examples: a service that guarantees a $50,000 increase in client revenue should be priced at $5,000‑$10,000, and a parenting course that saves upper‑middle‑class millennial parents three hours per week for a year should be priced in the high hundreds to low thousands rather than $99. The speaker urges listeners—especially women‑owned businesses—to shift their mindset, overcome the fear of asking for their true worth, and use this pricing approach as a lever to boost revenue.

Chapters

just a quick pricing lesson, value-based pricing. And so you are charging a rate, uh, that is like 10 to 20% of the total value that your client is expecting to receive from your services. So if I have a service that is guaranteed to make you $50,000 more this year, I need to price that service at $5,000 to $10,000. Again, that's 10 to 20% of $50,000. And so like start to change that in your mind. Like if you're providing, um, you know, a parenting course or something like that that will save, uh, you know, upper middle class millennial parents 3 hours a week for the next year, that's worth a lot more than $99. That's more like, you know, $999 or $1,999 or something like that. And so please, please flip that switch in your brain that is afraid to ask for what you are actually worth. And that will be a huge driver for increasing revenue in women-owned businesses