[joedev]

Will you happily pay $20k if you know that someone else, billing by the hour for the same quality of work, will cost you $10k?

[div]

This is a great point that people rarely make in these discussions.

If you want to do value based pricing, you need to have a sales pitch that differentiates you from the market, or risk pricing yourself out of said market.

Making a lot of money per <hour|day|week|...> doesn't come down to just asking for it. You have to market yourself.

[theoj]

Yes, because the value consultant charges more but also provides more. In addition to understanding the technical aspects, he also understands the business aspects and can speak the client's language (business goals) freeing the client from having to micro manage or go deep into the weeds of the tech nitty-gritty. Best of all, the value driven consultant knows what's truly important and can intelligently focus his technical efforts on those areas which provide the biggest payoff.

As others have stated elsewhere in this thread: there are people who are willing to pay you a lot of money so you can free up their time and let them focus on activities that generate a boatload more money than $10K. These are the people who will happily choose the $20K offer, and these are the people you want to work with.