All roads in business eventually lead to the bottom line. Everything we have done to this point has been to create value for our clients. This value will in turn give us the opportunity to charge more then would be normally possible. How do we charge for our products and services? The cost-plus method is the typical, trusted formula, however, this is leaving money on the table. Of course, we should have a very accurate method to measure all costs, and there are great accounting tools that are available to measure profitability. However, when we successfully exceed expectations, we can charge more because the client will happily pay more. Value based pricing needs to be an integrated philosophy, considering every aspect of the client experience with your company. Only then can you ask for a higher price, and your clients will be thrilled to pay. When you price with the consideration of perceived value, you focus on the results, not the process. Everyone on the team must be committed to staging this concept, so that nothing that the client sees will sacrifice the margins.
If you want to establish your business as "value based", then you need to target the proper consumer for your offering. Not every consumer is a potential client. The effort to communicate your "value message" needs to be directed to a receptive ear. You must make the value you create very apparent and understood. For example, just because you are efficient in running your business, doesn