
Spoiler alert: Being the cheapest isn’t the only way to win clients.
If you’ve ever lost a project to someone charging half your rate, you know how frustrating it feels. But here’s what I’ve learned after years of coaching creative entrepreneurs: competing on price is a race to the bottom that nobody wins.
The good news? There’s a better way to compete and it doesn’t require slashing your rates.
But first, let’s get clear on what we’re talking about:
Value-based pricing = Charging based on the transformation, results, and outcomes you provide to clients and customers, not just your time or materials.
This isn’t about being expensive for the sake of it. It’s about positioning yourself as the premium choice that clients are happy to invest in because they understand the true value of what you deliver.
And yes, that’s totally possible even when you’re not the budget option.
When you price based on value instead of just your time or costs, you’re attracting a completely different type of client than those hunting for bargains.
Think about the last time you bought something important.
Did you automatically go with the cheapest option? Probably not.
You likely considered:
Your clients think the same way.
The secret? Stop competing on price and start competing on value.
Before we dive into strategy, let’s get clear on what we’re NOT talking about:
The shift happens when you stop thinking “What’s my time worth?” and start asking “What’s this transformation worth to my client?”
Here’s the difference:
See the shift?
Look, there’s no magic formula here. But there ARE specific things you can do to make clients choose you over the cheaper option.
All of these need to be captured in your UVP (Unique Value Proposition) and communicated consistently throughout your marketing and sales process.
Remember: Your Ideal Client (aka ICA) must value what you’re highlighting over getting the cheapest price possible. If they don’t, your business will struggle.
Here’s what works time and again for me and my coaching clients:
People do business with people.
When clients know, like, and trust you, they’re willing to invest more.
How to build relationships:
COO Tip: Your first customers are often people who already have relationships with you. Lean into that.
This isn’t just about having better skills. It’s about communicating why your quality matters.
Premium quality indicators:
COO Tip: Sometimes you need to educate clients on why your approach is better. Don’t assume they automatically know.
Show, don’t just tell.
Proof that converts:
COO Tip: Make your results measurable whenever possible. Numbers are easier for clients to understand and justify to themselves.
White glove service isn’t just a fancy buzzword, it can be a competitive advantage.
Premium experience elements:
COO Tip: Make clients feel special, seen, and cared for from day one.
Quick clarification! This is different from value based pricing.
We’re talking about values as in principles and beliefs, not value as in what something is worth.
Values-based clients will pay more for businesses that reflect their beliefs.
Value alignment examples:
COO Tip: Outdoor brand Patagonia is a really great example of this. People are willing to pay more for their clothing and products because they align with their environmental values and ethical business practices. It makes customers into brand advocates who are super passionate about the brand.
Remove the risk from their investment.
Guarantee options:
COO Tip: Be clear about parameters and what results you are (and aren’t) promising.
All of these strategies need to be captured in your Unique Value Proposition (UVP).
Your UVP should answer:
UVP Formula: “I help [ideal client] achieve [specific outcome] through [your unique approach] so they can [bigger transformation].”
Here’s the truth: Your premium pricing strategy only works if your Ideal Client Avatar (ICA) values what you’re offering over getting the cheapest price.
There are two types of clients:
You want type #2.
If you’re constantly attracting price-sensitive clients, you might need to:
Create packages that provide more value while increasing your profit margins.
How bundling works:
Example: Instead of selling logo design alone, bundle it with brand guidelines, social media templates, and a website header.
Value based pricing isn’t about being the most expensive option.
It’s about being the best investment for the right clients.
Remember:
Start with these action steps:
Response: “I understand price is a consideration. Let me share what’s included in this investment and the results my clients typically see…”
Focus the conversation back on value and outcomes, not just price.
Signs your pricing might need adjustment:
Solution: Test different price points and value propositions with new prospects.
Yes, but do it strategically:
Perfect! This gives you an opportunity to differentiate on value.
Your response: “You’re right, we’re not the cheapest option. Here’s what that investment gets you that the budget alternatives don’t…”
The truth? Most creative entrepreneurs under-price their services.
Value based pricing helps you charge a sustainable rate while attracting clients who appreciate and invest in quality.
Your creative expertise has value beyond your billable hours.
Time to price like it.
You’ve got the foundation. Now let’s build on it.
If you’re ready to stop undercharging and start attracting clients who value what you do, I’ve got tools to help:
Explore my premium resources:
Or, check out these free resources to get you started: