Conversations around Value Based Pricing are often framed in a comic book casting of good (VBP) vs evil (Cost Based Pricing / CBP) But it's not an either/or, and it's an incomplete picture Cost and perceived value set the parameters of what a price can be, but they don't define what the price ultimately is Unless you're a VC backed SaaS company burning other people's money, the price a client pays does generally need to be higher than your cost to deliver the service In profe

Value Based Pricing (VBP) is being sold to law firms as a silver bullet to increase prices, whereas it is being sold to clients as a silver bullet to reduce spend Contrast the following real, but non-attributed, quotes: "Adopt and implement value-based pricing models for your in-house legal counsel. Reduce costs based on outcomes and not hours" With "Increased profitability. Firms can capture genuine value for the results they deliver" Both can be correct, but this is... a di

"Half the money I spend on advertising is wasted, the trouble is I don't know which half" is a quote from John Wanamaker, a US merchant and department store pioneer And now (some 100 years later!) O Shaped 's recent Legal Buyers Report gives a decent indication of which half is which - noting the echo on page 21 the 45% of law firm M&BD efforts that have no or negative impact The 50-55% that works: - p32 - showing curiousity and interest in the client's business, beyond the l