A casual chat with a Toronto VC made me question my whole pricing model
She said, 'you're not selling software, you're selling peace of mind,' and after running the numbers on my last 12 deals, I realized I've been undercharging by about 30% for the exact same outcome, so has anyone else shifted from cost-plus to value-based pricing and actually seen clients push back or not?
That 30% gap is probably sitting in the fact that you were pricing the hours it takes to build the thing instead of what it saves them when it works. Once clients see the number tied to an outcome they care about, most of them stop haggling over the line items and start asking how fast you can start. The pushback usually comes from the ones who were never a good fit anyway, and losing those deals is the whole point.