Value-Based Pricing
Price set by the value delivered to the buyer rather than by cost; legitimate when the value is real and shared, extractive when the seller captures nearly all of it or prices on value the buyer cannot verify.
An everyday example
'This saves you $2M a year, so $800K is a bargain' — where the $2M is the vendor's model.
What it can cost you
Paying for a value model you did not build; letting the seller define your savings.
Warning signs
- The value number came from the seller.
- I cannot reproduce their savings estimate.
One thing to do
Build your own value estimate with conservative assumptions; pay for realised value where possible, and never for the seller's projection alone.
Is this happening to you right now?
Describe your situation and get a read across all six brains. No account needed.
Check my situationRelated
Not medical, legal or financial advice. How Decision IQ works
One decision idea a week
One useful idea. No daily drip, no pressure.