Value-Based Pricing Conversation
Turn a requested deliverable into a quantified business outcome and proportional fee
- Difficulty
- Advanced
- Time to result
- ~weeks to results
- Steps
- 7
- Confidence
- 99%
The Value-Based Pricing Conversation begins by separating the client's requested artifact from the result they actually want. A video, website, or identity is a vehicle; the discovery process must uncover the underlying goal, such as increased sales. The provider then puts a measurable container around success by documenting the current baseline, desired future state, time period, and resulting financial delta. Rather than announcing an isolated production price, the provider asks what proportion of that potential value would be fair to invest. The proposed fee is framed against the larger client-defined outcome and adjusted downward for uncertainty. If the deliverable has little strategic value, the provider offers a simpler, less expensive solution instead of imposing premium craftsmanship disconnected from the client's needs.
Origin
Chris Do demonstrated this process in an after-show exchange with videographer Max Tucker, using a hypothetical apparel company seeking a video to increase monthly sales.
Core principles
- 01The requested deliverable is a vehicle, not the client's real goal
- 02The client should articulate the outcome and its value
- 03Prices need business context before they can be judged
- 04Compensation should reflect a fair portion of expected value
- 05Uncertainty should reduce the provider's claim on projected value
How to run it
- 1
Question the Requested Vehicle
Ask why the client believes they need the requested video, website, campaign, or design. Move the conversation away from production specifications and toward purpose.
Pro tip Use a curious, non-confrontational question rather than challenging the client's judgment.
Watch out Accepting the requested artifact as the goal prevents meaningful value discovery.
- 2
Name the Business Goal
Translate the answer into a specific commercial objective, such as selling more apparel or generating qualified leads. Confirm the interpretation with the client.
Pro tip Repeat the goal in plain business language.
Watch out Do not substitute your preferred creative outcome for the client's business objective.
- 3
Put a Container Around Success
Define the current baseline, desired target, and time period. Agree on how both parties will recognize whether the outcome occurred.
Pro tip Use numbers the client already tracks and trusts.
Watch out A vague aspiration cannot support a credible value calculation.
- 4
Calculate the Value Delta
Subtract the current result from the target and extend the gain over the relevant period. Ask whether the resulting number is realistic.
Pro tip Have the client validate each assumption before moving forward.
Watch out Do not present speculative projections as guaranteed gains.
- 5
Establish a Fair Percentage
Ask what percentage of the projected value feels reasonable to invest, then benchmark the answer against typical consulting or marketing ranges. Use the value delta as the context for the fee.
Pro tip Repeat the projected value enough that the client compares the fee with the outcome rather than with raw production cost.
Watch out Do not manipulate the client with an inflated anchor.
- 6
Discount for Uncertainty
Reduce the theoretical value share to reflect the absence of a guarantee and the contribution of other variables. Explain how certainty would affect the economics.
Pro tip Make the uncertainty adjustment explicit rather than hiding it inside the price.
Watch out Charging as if the outcome were guaranteed creates misaligned expectations.
- 7
Right-Size the Solution
If the outcome matters greatly, propose the capability required to pursue it. If it barely matters, offer a lower-cost production approach that fits the client's actual stakes.
Pro tip Preserve multiple quality tiers instead of insisting on the premium version.
Watch out Do not deliver a Rolls-Royce solution to a problem the client values like basic transportation.
In the wild
A gym-apparel company wants a video to grow its social presence and sell more clothing. Current sales are $100,000 per month, while the target is $130,000. The projected increase is $30,000 monthly or $360,000 annually. At 10% of the client-validated value, the indicative project fee becomes $36,000, subject to an uncertainty discount and agreement on the video's role.
→ The client evaluates the fee in relation to a $360,000 objective rather than as an isolated production expense.
A prospect wants video only because someone suggested making videos, with no significant business result attached. Instead of forcing a premium production, the provider offers a simple $3,000 iPhone-based approach matched to the limited stakes.
→ The client receives an economically appropriate solution without unnecessary creative overproduction.
Common mistakes
Treating the Artifact as the Goal
A video or website is usually a means to an outcome, so pricing it without understanding the outcome obscures its value.
Quoting Without Context
An isolated fee can seem expensive because the client has no agreed financial outcome against which to compare it.
Forcing Premium Craftsmanship
Delivering the provider's highest production standard regardless of client stakes disconnects creative ambition from business value.
Is it for you?
Best for
It is best for providers whose work supports measurable commercial outcomes and who can confidently facilitate a business-focused discovery conversation.
Not ideal for
It is not ideal when the outcome has little importance, cannot be measured, or depends mainly on factors outside both parties' control.
From the transcript
“So the video is just a vehicle.”
“So first you need to understand the goal. Then you have to put a container around it.”
“Because absent context, we don't understand if a price is good or bad.”
From the episode
Sophisticated Marketing: Creating Content That Builds Community with Chris Do
Chris Do