What is value-based pricing?

Value-based pricing definition

Value-based pricing is a pricing strategy employed by agencies where the price of a service is determined by its perceived value to the client, rather than the actual cost of delivering the service or the prevailing market price. This approach is rooted in the idea that clients are willing to pay more for a solution that delivers superior benefits or addresses their unique needs effectively. Contrary to cost-plus or hourly pricing, where fees are set based on the costs or time involved, value-based pricing focuses on the value delivered to the client.

Resource thumbnail

Scale your agency with

Join 6,000+ agencies that trust us as the only platform custom-built for client work. Drive business efficiency, grow profits, and scale confidently with

Check out

How to create a value-based pricing strategy

To set a successful value-based pricing strategy in an agency setting, consider the following steps:

  1. Understand the client’s needs: Engage with clients to grasp the challenges they face and the potential value a solution could bring.

  2. Assess the value proposition: Evaluate the tangible and intangible benefits of your service. This might include things like potential ROI, time saved, or unique expertise offered.

  3. Analyze competitor pricing: While the focus is on value, it's still essential to be aware of the market landscape. This helps ensure your pricing is competitive yet reflective of the value you offer.

  4. Segment your clients: Recognize that different clients might perceive value differently. Segmenting allows for tailored pricing strategies for different client categories.

  5. Communicate the value: Ensure that clients understand the benefits they'll receive. Clear communication about the value provided can justify a higher price point.

  6. Regularly review and adjust: As the market changes, and as you receive feedback, revisit your agency’s pricing strategy to ensure it remains aligned with the value delivered.

Using a robust platform like can further enhance an agency's ability to demonstrate the value delivered through organized project management and efficient service delivery.

Resource thumbnail

Looking for the best free project management templates?

Discover's extensive library of free product templates.

Get more work done

Discover more glossary terms: