Value-Based Pricing Generator
Don't sell your time. Sell the result. Calculate the ROI for your client.
How This Tool Works
The Value-Based Pricing Generator helps consultants and freelancers move away from commodity pricing. When you charge by the hour, you are essentially penalized for being faster and more experienced. Value-based pricing flips the script by focusing on the economic impact you create for the client.
This generator calculates the ROI (Return on Investment) and the Payback Multiplier of your proposal. This allows you to present your fee as an investment rather than an expense, making it much easier for stakeholders to approve.
How to Use the Generator
- Proposed Fee: Enter the total amount you want to charge for the project or solution.
- Value Generated: Estimate the total financial benefit the client will see in one year. This can be new revenue, recovered lost revenue, or operational cost savings.
- 10x Check: Observe how your fee compares to the total value. High-value consultants typically aim for a 5x to 10x multiplier.
Example Calculation
If you charge a $15,000 fee for a marketing automation setup that generates $150,000 in new revenue:
- Client ROI: 900.0%
- Payback Multiplier: 10.0x
- The Pitch: "For every $1 you invest with me, your business earns $10 in return."
Why This Tool Is Accurate
We use standard business ROI modeling to help frame your pricing conversation:
- The Payback Multiplier: This metric is what CEOs and CFOs care about most. It answers the question: "Is this worth the risk?"
- Psychological Anchoring: By showing the ROI percentage, it makes a high fee (like $20k) look small compared to a massive result (like $200k).
- Verdict Logic: The tool categorizes your pitch as "Hard Sell," "Fair Value," or "No-Brainer" based on the multiplier, helping you gauge if your price is too high or too low.