From the course: Running a Design Business: Pricing and Estimating
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Value-based pricing strategy
From the course: Running a Design Business: Pricing and Estimating
Value-based pricing strategy
Another way to look at pricing is based on value. This requires an estimation of the importance, worth, or usefulness of the project to your client. You need to make a judgment call based on what you perceive the value is, and then attach a dollar figure to it. It's a little tricky. This idea of pricing based on value is very impacted by supply and demand. Meaning, are there lots of designers supplying this service or are there very few? Are there many clients demanding this service or not? Great demand plus limited supply equals higher price. Low demand plus abundant supply equals low price. That's a basic business concept. You need to research the marketplace and know what people are paying for a project like this. How do you do that? Probably the most reliable information is feedback shared by other designers and other clients. This can be a little hard to obtain unless you have great relationships. And can have candid conversations where people reveal, either what the client would…
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