Pricing should be based on value delivered, not cost of production

Cost-plus pricing (materials + labor + markup) leaves money on the table. If your plumbing insight saves someone a $5,000 mistake, the insight is worth far more than the 10 minutes it took to write. Value-based pricing asks: what is the outcome worth to the customer? SaaS companies that switch from cost-based to value-based pricing see 30-50% revenue increases on average.