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technique
Value-Based Pricing
Last discussed Oct 29, 2026
A pricing methodology where prices are set based on the value delivered to the customer rather than competitor pricing or cost-plus approaches. Formula: value created × 10–20% = your price.
Recently discussed in
Value-Based Pricing And Charging As Much As The Market Will Bear - Kitces & Carl Ep 202
Michael Kitces · Oct 29, 2026
What creators say
Michael Kitces
mentioned
vs: Contrasted with cost-plus-a-reasonable-margin pricing
"This is essentially a subset of folks who would advocate for a value-based pricing approach, which essentially is what is the value in the eyes of the client or the customer who's buying. And another set of us that says, 'No, no, no, the right way..."
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