How Value-Based Pricing Transformed a Creative Agency

Pricing Transformation / Across the Pond

A Cycle of Billing for Time

Across the Pond wasn't struggling but our traditional time-based pricing model was a ceiling on our growth. Stuck in the cycle of billing for time and adding mark-ups, we couldn’t see an alternative path to more revenue and profit for our (then) video agency.

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A Radical New Direction

In 2017, we embraced a radical new direction: value-based pricing. Inspired by Blair Enns' "The Win Without Pitching Manifesto" and "Pricing Creativity," we ditched the hours-and-minutes billing and started offering clients a choice. Every proposal came with three distinct options, to reflect the tangible value delivered.

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Cultural Shift

This wasn't just about a price hike. It was a cultural shift. Budget breakdowns became a thing of the past; the focus pivoted to unearthing the client's core objectives. At Across the Pond we stopped jumping to solutions and instead honed our skills at diagnosing problems and understanding what was really at the heart of the client’s request. Armed with those insights, we developed three pricing tiers explicitly tied to the value their expertise could create.

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Dramatic Impact

The impact was swift and dramatic. Simple promotional reels evolved into comprehensive advertising campaigns. Last-minute rushes commanded premium pricing. Clients were actually paying us for our strategic and creative thinking.

Within one year, Across the Pond's revenue had surged by $1 million - revenue we would never have captured under our former model.

“After one day of training, we were able to attribute almost $1,000,000 in new revenue to one technique alone. This practice has us constantly looking for ways to add more value. Clients see that and appreciate it.” - Julie Cohen, Founder, Across the Pond

This story highlights the importance of prioritising client needs, understanding their goals, and getting rewarded for the value that you deliver.

  • Adopted new sales frameworks

    Introduced value-based pricing strategies

    Offered options

    Diagnosis before prescription

  • $1,000,000 in new revenue

    Agency culture shift

    Internal appreciation of expertise and value

Inspired to bring about similar change for your creative business?

Get in touch to find out about the next Win Without Pitching Workshop.