In a small company, probably, but in Enterprise contracting, I would be surprised if this is usually true.
In a small company, probably, but in Enterprise contracting, I would be surprised if this is usually true.
Somebody in the enterprise is responsible for ensuring that projects aren't run without any expectation of creating value; that's the person/group to talk to. If you're not talking to that person/group, then you're right that value-based pricing is going to be hard/impossible to pull off.
If the buyer doesn't have any idea how much value you can/are creating, then your first task is to help them quantify the value (this is good for them no matter who they hire).
If Apple ask you to bid on creating the iPhone, how would value that? (The world hasn't seen an iPhone.) If you're capable of designing the iPhone and the best your competitor is capable of is creating a Galaxy, would the two bids be equal under the assumption of ideal value pricing?
If they can't or won't look past an hourly rate, then you probably don't want to work for them, because their other expectations may be equally as baseless.