Imagine that you hire someone to come around once a day in the afternoon and clean all the toilets in your building. The cleaner works for £10 an hour and it takes five hours per day so the cost to you is £50 per day.
A technology firm approaches you with a robot cleaner that can do exactly the same job. The robot's value to you is then £50 per day, because you no longer have to pay the cleaner. If the technology firm offers you the robot for anything less than £50 per day then the price should be acceptable.
This is the basis of value-based pricing that looks at tangible or certain or past costs: assume that the existing solution is 100% satisfactory; calculate the costs that are removed when using technology instead of the manual process; and set the price accordingly.
The other way to think about value-based pricing is to look at intangible or uncertain or future costs. Imagine that there is a very small risk of some highly-damaging infection with the current practice of cleaning five hours per day, and that the risk would be negligible if you cleaned every hour.
If you wanted to eliminate the risk completely then one solution would be to hire a cleaner every hour, say £240 per day. But practically speaking the risk is tiny, and you've never been affected before, so £240 per day is probably too much. However, if the same technology company said that its robots could not only clean but also eliminate this risk of infection then its value rises to £240 per day.
In other words, the technology company assumes that the existing solution is well below 100% satisfactory and considers the cost of scaling up the current processes to hit 100%. This is a much clearer way of putting a value on the elimination of risk than try to argue that there is a 0.01% chance per day of a £1m disaster.
Assigning a value to the reduction of a very small risk is notoriously difficult and unreliable. Try arguing that the maximum speed limit on motorways should be 5 mph less because of the marginal difference in the risk of motor accidents. However, that does not mean that it has no value at all, so think about the costs of eliminating the risk using existing practices.