Peter Vander WallFounder driving creative community growth

Value-Based Pricing #shorts

Name: Value-Based Pricing #shorts
Uploaded: 2023-11-11T10:00:10+00:00
Duration: 49 s
Channel: Peter Vander Wall
Description: A short YouTube clip (by Peter Vander Wall) explaining value-based pricing using a tax-planning example: charging based on client value rather than…

11 Nov 2023 · 1 min

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0:49

A short YouTube clip (by Peter Vander Wall) explaining value-based pricing using a tax-planning example: charging based on client value rather than hourly cost. The speaker contrasts charging $150/hour (or multiple one-hour calls) with charging $5,000 for a tax plan that saves a client $50,000, transforming a transactional relationship into an advisory one and reducing total hours spent per client.

Questions this video answers

$50,000

$5,000

$150 per hour

Chapters

That was really when I discovered value based pricing. Because the cost that it takes you or the price that you're going to charge really is irrelevant to the customer when when you could be charging based on the value that you provide somebody. So if I'm able to save somebody $50,000 in taxes by creating them a tax plan and structuring it properly, why am I not charging $5,000 when I know I could save somebody 50,000? Why am I only charging $150 an hour hourly rate? Right. When I discovered value based pricing, that completely changed the game for me because it went from a transactional relationship into a more advisor friendly relationship. And so instead of having to do ten one hour calls for $500 to make five grand, I could sell one tax planning client at $5,000 and I'm going to spend three or four hours a year with them versus the ten hours I would have had to spend with the ten people.