If you say “Value Billing” you are already wrong

by Ed Kless on January 13, 2012

So today, I have heard or read the phrase "value billing" about a dozen times and I decided to write a rant post about it, only to discover that I had already written one almost three years ago.

Bottom line, if you say "value billing" you are already wrong.

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{ 6 comments… read them below or add one }

Jerry Norman January 13, 2012 at 9:22 am: I’ll go a step further, Ed. “Value Billing” exposes both a focus on the vendor, and an implication of low price!

The key feature to the customer is the fixed-price part. They don’t care about our billings, only their price.

And how many times have you picked up a good deal at a “value days” sale, or on the “value table”?

Talk to the customer in his/her language if you want to communicate (silently) that you care about their value proposition.
Ed Kless January 13, 2012 at 9:29 am: Amen, Jerry! Thanks for your comment.
Mike ⎝⏠⏝⏠⎠ Lazarus January 13, 2012 at 2:26 pm: If I billed according to the value I provide, no one could afford me
Ed Kless January 13, 2012 at 2:53 pm: Ah, but that is not value pricing either. Value pricing does NOT mean that you set the price EQUAL to the value. It means that the primary input into price is value rather than cost.

That is why I often refer to it as “value-led” pricing as opposed to “cost-led” (aka time) pricing.
Peter Wolf January 13, 2012 at 6:25 pm: Proper terminology is important to truly understand any concept. People that use “value billing” oftentimes don’t want to take the time to develop that true understanding.