ARION
Digital Presence & Branding
SPARK
Marketing & Growth Systems
OLIVER
Operations, Admin & Execution
STELLA
Data Intelligence & Analytics
FORGE
Custom Apps & Integrations
ARGUS
Automation & Orchestration
SPARK — Marketing & Growth Systems
Turn contacts into loyal customers with automated, data-driven marketing.
FORGE — Custom Apps & Integrations
Build exactly what your business needs, connected to every tool you use.
ARGUS — Automation & Orchestration
The intelligence layer connecting every platform, automatically.
One login. One data model. Six platforms. Zero app-switching. Explore the full ecosystem →
Build Your Brand
Presence, Visibility & Growth
Build Your Foundation
Operations, Process & Workflows
Build Your Clarity
Reporting, KPIs & Data Strategy
Build Your Engine
Integrations, Automation & Tech
HomeNewsletter › Issue #04 — Pricing Strategy: Why Most Service Businesses Leave 20% on the Table

Issue #04 — Pricing Strategy: Why Most Service Businesses Leave 20% on the Table

brandon sheriff··1 min read·2 views
NewsletterStrategy

Issue #04  ·  March 10, 2026  ·  The Operations Weekly

If you’re pricing based on cost-plus — your costs plus a margin — you’re probably undercharging. Not because your costs are too low, but because cost-plus ignores the most important pricing variable: what is this worth to the customer?

The Shift to Value-Based Pricing

Value-based pricing means anchoring your price to the outcome you deliver, not the hours you spend. A plumber who fixes a leak that’s been damaging a basement for weeks isn’t charging for 90 minutes of labor — they’re delivering peace of mind and stopping ongoing damage. Those things have a different value than 1.5 hours × $95.

How to Implement This Without Losing Customers

Start by segmenting your service offerings into three tiers: a basic option (close to your current pricing), a standard option (adds your most popular add-ons), and a premium option (full-service, outcome-guaranteed). Most customers choose the middle. Premium exists to anchor the standard as the “reasonable” choice.

brandon sheriff
brandon sheriff

Related Posts