Price should be based on value, not effort

Recently, a consultant stated that the proposed price to the customer was excessive. The assertion was the price should be based on the time/resources required to produce the product. That is logical/reasonable but it's incomplete. Price should be based on the value to the customer and alternatives in the market place. Value based pricing is nothing new, but it's surprising how many people in a position to set pricing fail to follow it.

It's not gouging customers if they're willing/able to pay for the service/product. Gouging is when people have no other options and are desperate. Being paid for well developed/delivered services and products is called conducting business.