Creating Value Propositions That Support Your Pricing

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Summary

Creating value propositions that support your pricing means clearly communicating the unique benefits and outcomes your product or service delivers, allowing you to justify and align your pricing with the value customers receive. This approach shifts the focus from costs or hours worked to the measurable impact you provide.

  • Focus on outcomes: Highlight the specific problems your solution addresses and the measurable results it delivers, such as savings in time, money, or reduced risks.
  • Price based on value: Align your pricing with the impact your solution brings, ensuring clients see the relationship between their investment and the benefits gained.
  • Test and refine: Continuously improve your value proposition by gathering feedback, addressing objections, and refining your messaging to resonate with decision-makers.
Summarized by AI based on LinkedIn member posts
  • View profile for Brian Kessman

    Value Models for Agencies | Pricing, Productization & Positioning | 4A’s Expert | Speaker

    11,118 followers

    DO NOT productize your agency’s SERVICES. Productize your agency’s VALUE. It’s easy to assume they’re the same. They’re not. ⚙️ Productizing SERVICES = Standardization and efficiency. 💥 Productizing VALUE = Transforming how your agency grows. I'll break it down further... ⚙️ When you productize SERVICES: You mold existing services into standard packages for efficiency: • It starts with inward thinking (process, deliverables) • Pricing is based on time or a fixed fee • The business model stays the same This means the old problems remain, too: • Sales conversations revolve around time ↳ Clients negotiate fees down ↳ This limits competitive salaries ↳ Staff experience burnout ↳ Creativity and innovation suffer 💥 When you productize VALUE: You monetize your expertise as repeatable solutions to your client's most critical problems--problems your firm is uniquely qualified to solve. • It starts with client-centric thinking (problems, outcomes) • Pricing is based on the value of solutions and impact • This changes everything With this approach, you: 1. Focus your business strategy on your ideal clients--those who gain the greatest impact from your firm's strengths     2. Create differentiating offerings that communicate clarity and confidence around the unique impact you can deliver     3. Align economic incentives with client interests--value delivery, quality, and speed--not billing more time You go to market with: • Immediate appeal to clients because your solutions target specific challenges    • Scope/price options designed to reduce lost deals due to price    • A cross-sell architecture designed to meet your client's unique situations The result: 1. Shortened sales cycles and improved win rates     2. Increased avg. deal size and profit margins     3. Longer, more strategic client relationships     4. Systems that drive repeatable success     5. Scalability without adding new headcount "𝘐𝘵 𝘸𝘢𝘴 𝘢 𝘸𝘩𝘰𝘭𝘦 𝘯𝘦𝘸 𝘸𝘢𝘺 𝘵𝘰 𝘧𝘳𝘢𝘮𝘦 𝘰𝘶𝘳 𝘷𝘢𝘭𝘶𝘦 𝘱𝘳𝘰𝘱𝘰𝘴𝘪𝘵𝘪𝘰𝘯 𝘵𝘩𝘢𝘵 𝘩𝘢𝘴 𝘪𝘮𝘮𝘦𝘥𝘪𝘢𝘵𝘦 𝘢𝘱𝘱𝘦𝘢𝘭 𝘵𝘰 𝘱𝘳𝘰𝘴𝘱𝘦𝘤𝘵𝘪𝘷𝘦 𝘤𝘭𝘪𝘦𝘯𝘵𝘴. 𝘞𝘦 𝘩𝘢𝘥 𝘰𝘶𝘳 𝘧𝘪𝘳𝘴𝘵 𝘱𝘳𝘰𝘥𝘶𝘤𝘵 𝘸𝘪𝘯 𝘸𝘪𝘵𝘩𝘪𝘯 𝘰𝘯𝘦 𝘮𝘰𝘯𝘵𝘩 𝘢𝘧𝘵𝘦𝘳 𝘤𝘰𝘮𝘱𝘭𝘦𝘵𝘪𝘯𝘨 𝘵𝘩𝘦 𝘱𝘳𝘰𝘨𝘳𝘢𝘮." --𝘈𝘨𝘦𝘯𝘤𝘺 𝘔𝘢𝘯𝘢𝘨𝘪𝘯𝘨 𝘋𝘪𝘳𝘦𝘤𝘵𝘰𝘳 Some think productizing value kills customization, creativity, or high-touch service. The opposite is true. It frees you to do your best work--focused, impactful, and profitable. Want this for your agency? Follow me or DM me--let’s talk about what’s possible.

  • View profile for Carla Cherry🍒

    I help people escape corporate → Build an offer → Sell back to corporate. Helped 100+ people leave corporate. Send me a message to make corporate your client!

    9,988 followers

    In the past 8 years, I have helped consultants go from struggling to sell their expertise to closing 6 figure deals… In the beginning most consultants had this problem: Their offer wasn’t clear enough to make a decision maker say “yes”. Here’s how I help my clients fix their offer (this has generated 10+ figures in revenue for them) 1. Solve one painful problem. If your offer tries to do everything, it won’t stand out. Pick one problem your ideal client needs to fix NOW. NOT later, NOT someday, but NOW. 2. Make the outcome clear. No one pays for effort. They pay for results. Instead of saying, “I help with leadership development,” say:  “I help companies retain top talent and reduce hiring costs by 30%.” 3. Tie your offer to money, risk, or time. Businesses spend money to make money, cut risks, or save time. If your offer doesn’t connect to one of these, it will feel like a "nice to have" instead of a “must have”. 4. Price based on value, not effort. If your solution helps a company make or save $100K, charging $5K isn’t just underpricing, it’s making them doubt the quality. Charge in proportion to the impact. 15-20% of the ROI you bring in is a good start. 5. Test it in the real world. A great offer isn’t built in isolation. It’s refined through conversations, objections, and feedback from actual buyers. Get in front of decision makers, listen, and adjust. Most consultants spend months guessing. The ones who win get into the market, adjust fast, and keep improving. Stop guessing and start landing 6-figure deals → https://lnkd.in/ezG6qcTQ

  • View profile for Ethan Williams

    Founder and CEO | AI Pioneer | Revenue Growth | Pricing Helping Businesses Price Smarter & Boost Profits with AI | Ex-McKinsey, PwC, GE Capital, FGS Global

    5,158 followers

    Why are so many still clinging to this outdated mindset? The future of consulting is not hourly. It’s outcome-based. The billable hour is broken: → It rewards inefficiency → Misaligns incentives → Caps your growth Top firms are moving fast toward outcome-based pricing - and seeing 2–3x higher margins because of it. Here’s the shift in action: ❌ “We charge $300/hour” ✅ “We'll deliver a validated 20% conversion improvement through our proven methodology, with a fixed investment of $X that demonstrably outperforms all alternative approaches in long-term value creation and ROI.ve that outcome” See the difference? Clients stop obsessing over costs. You align fully with their success. And you finally break free from the time-for-money trap. It’s not an easy transition. You’ll need: → Clear ways to measure impact → Strong value articulation → Pricing confidence → Financial models to back it up And the firms figuring this out and not just surviving. They’re thriving. The market is moving. Your pricing model needs to move with it. Are you ready to price for impact?

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