Value-based Pricing
Pricing ModelPricing Strategy
An emergent phenomenon, not a technique you apply. Value-based pricing cannot be commanded into existence — it emerges naturally when the pricing architecture is right: the licensing model captures the right metric, the offering structure reflects how different customer groups use the product, and price setting is related to value-in-use. When all three layers are aligned and the sales culture supports them, customers pay prices that reflect the value they receive. Most implementations skip the first two layers and jump straight to price setting, which is just cost-plus with a narrative. Charging the most each customer will bear isn't value-based pricing — it's situational pricing dressed up with a better name.
Used in these articles
- Thin Wrapper AI Product Margin: Why Your Model Is the Risk
- How to Price Software: The Architecture Behind the Price
- Is It Fair to Charge Different Customers Different Prices for B2B Software?
- In B2B software, 90% of value-based pricing and selling is a hoax
- How to Price Software When You Can’t See Usage Yet