Pricing on what it is worth.
THE PRINCIPLE
What the customer gains, not what it costs you.
WHERE IT APPLIES
Services with a measurable outcome Specialist expertise Anything where the result matters more than the effort
THE EXAMPLE
A repair taking an hour that prevents a much larger loss is not worth one hour of your time.
It is worth a proportion of the loss avoided.
HOW TO APPROACH IT
Understand what the customer is actually buying Understand what it is worth to them Price accordingly
WHAT CUSTOMERS ACTUALLY BUY
Rarely the thing itself.
They buy the outcome: time saved, problem solved, risk removed, money made.
HOW TO FIND OUT
Ask what happens if the problem is not solved.
The answer tells you the value.
WHERE IT DOES NOT APPLY
Commodity products with visible competitor prices
WHAT IT REQUIRES
Confidence, and the ability to explain the value.
