A few years ago, I was working on a proposal for a prospect. The project involved designing a new accounting system and documenting the process. I love this type of work—it’s second nature to me (yes, I’m a nerd). I quickly decided on the project price, created the proposal, and then shared it with my “Value Council.”
What’s a Value Council? It’s a group of trusted professionals who help me build proposals that reflect the true value of my work and price them accordingly.
The Problem with Pricing Based on Effort
When I first started my business, pricing projects was tough. It was easy to fall into the trap of thinking, “This is easy for me, so it shouldn’t cost much,” or “It won’t take long, so I’ll charge less.”
But here’s the thing—it’s not about me. It’s about the customer. They’re not paying for how long it takes or how easy it feels to me. They’re paying for the value they receive.
Why Every Business Needs a Value Council
Meeting with my Value Council before sending proposals changed my approach to pricing. These professionals made me answer tough but essential questions, like:
- If this work is easy, why are they hiring you and not doing it themselves?
- Does the client care if it takes 5 hours or 20 hours? (Spoiler alert: They don’t!)
- Doesn’t your experience make you more qualified to deliver better results? Shouldn’t you be compensated for that knowledge?
Answering these questions gave me a new perspective on pricing. My focus shifted to what the client values—not how much time or effort I’d put in. And guess what? My bottom line improved.
How to Form Your Own Value Council
Ready to create your own Value Council? Here’s how to start:
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Identify Trusted Advisors: Choose a small group of people who understand business and value creation. This could include your CPA, a mentor, or a business coach.
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Schedule Regular Meetings: Before sending out a big proposal, meet with your council to review it. These meetings can be as short as 15 minutes or as long as an hour, depending on the project.
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Be Open to Feedback: Let your council challenge your assumptions. They’re there to help you see the value you provide and ensure your pricing reflects that.
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Focus on the Customer’s Perspective: Use these meetings to hone in on what matters most to your clients, not just what’s easy or fast for you.
Why Your Value Matters
Your clients aren’t buying your time—they’re buying the results you deliver. They value your expertise, insights, and ability to solve problems they can’t tackle themselves. When you price your services based on value, everyone wins.
If you want to explore how a Value Council can enhance your pricing strategy and boost your bottom line, reach out to us.