During a recent talk on pricing, I was asked the question “does value based pricing apply to services?” I suddenly realized that all my pricing examples were based on physical products. This makes sense given my background in electrical engineering.
The answer of course is “yes – value based pricing very much applies to services.” I think about the trend of moving software to software as a service (SaaS). The value to me using SaaS is that I don’t need to have servers at home, air conditioning, back-up, IT personnel, etc. That has a real value that I will be happy to pay for.