Many businesses sell their services by operating under the labor theory of value, where the value of a service is determined by the amount of labor used in its production. But there is another theory that is being used successfully. Value-based pricing!
What is Value-Based Pricing?
Value-based pricing is a subjective pricing strategy which sets prices primarily, but not exclusively, on the value to the customer rather than on the cost of the product or market prices. It has been called the pinnacle of pricing. But getting there takes some research. Read the rest of this entry »