Are you charging enough? Successful businesses maximise their profits by matching their pricing with the value customers put on their products or services.Product pricing is often built on a ‘cost-plus’ basis, while service pricing is generally created on perceived value. Pricing is based on three critical points:What your product or service will be worth to your customers — it's value.What it costs you to produce your product or provide your service.The price your competitors charge.Value-based pricing is the practice of setting the price of a product or service at its perceived value to the customer.This approach tends to result in very high prices and consequently results in generating higher profits for those companies that can persuade their customers the product or service is worth the price.Value based pricing does not consider the costs of the product or service, nor the existing market prices. Value-based pricing is usually applied to very Specialised services.This month’s podcasts focus on the basic principles that you quickly need to get your head around just before and as you start your business.In last week’s session we discussed vision statements and today we will be discussing value based pricing. The foundation behind the business.I today’s session I will introduce you to the advantages and disadvantages of value based pricing.