Price-Sensitive or Market-Leading: It’s Your Choice

What Veblen pricing can teach you about becoming the go-to consultant

A few years ago, when I was running my CEO advisory business, a client told me something that stopped me in my tracks.

He’d just returned from an offsite with his top team, where they’d hired a well-known strategy guru.

The fee?

Over $70,000—for less than a day’s work.

But what struck me wasn’t the eye-watering fee.

It was how proud he was about paying it.

There was no grumbling.

In fact, there was a hint of awe in his voice.

That’s when I truly understood the Veblen effect—and how it applies to consulting.

The Veblen effect refers to the phenomenon where demand for a product or service increases as its price increases—because the higher price signals greater value, status, or exclusivity.

The Veblen effect and the power of premium positioning

While I’m not suggesting you’ll charge £50K+ tomorrow, market-leading fees are within reach—if you position yourself accordingly.

For recognised authorities, the Veblen effect works in your favour:

• Perceived Value – Higher fees signal deeper expertise.

• Exclusivity – Premium pricing makes your service more desirable.

• Halo Effect – Hiring you becomes a badge of credibility for the client.

• Value Assumption – If it costs more, it must deliver more.

Of course, your results must justify the price.

But when you consistently deliver strategic outcomes, price becomes a secondary consideration—not the sticking point.

From price-sensitive to price-setting

I started out price-sensitive—discounting just to get a foot in the door.

Over time, with the right positioning and structure, I moved into commanding upper-tier London advisory fees.

It didn’t happen overnight.

But it also didn’t require clever tricks or gimmicks.

It came from building credibility, showing real insight, and creating value before the sale.

So here’s a question worth reflecting on:

How would your business change if clients valued your insights so highly that price was never the issue?

Just a thought.

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