The Importance of Value-Based Pricing

Cost plus is wrong every time and value-based pricing is wrong some of the time. But if your margins are good on cost plus, there's nothing inherently wrong with it. I think advertising's problem is that unlike people with letters after their name, lawyers and accountants, they can get away with charging cost plus. That means you have to have a client who's really interested in engaging you to create value rather than create ads. A lot of clients would rather just buy the hours.