I have studied, learned, and slowly applied the concept of value-based pricing.
With it, you set prices based on the perceived or estimated value of a product or service. This means that the cost of the product or market trend doesn't play a role when pricing.
It's interesting when applied. Wonderful when you charge through it.
Airplane tickets are a great example of this. Date, seat, and season affect the price even though you are going from A to B.
The interesting thing is that I don't see many service businesses using this pricing model.
It can be a local business or Walmart and they still charge by the hour.
What's your pricing model and why?