Books
Value-based Pricing
When customers feel they are getting good value from your product or service, they are more than happy to pay more – which is potentially good news for you and your business. Even in today’s global market, with its aggressive competitors, low cost commodities, savvy buyers and intangible digital offerings, you can outsell and outperform the rest using Value Based Pricing.
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The challenge of value
First you must understand your customer and what is important (valuable) to him in terms of the three elements of the Value Triad ©. Second you must understand your competition and how you are different from them. Third you have to quantify the monetary and emotional value (both positive and negative) of these differentiators. Finally you have to construct a Value Proposition that clearly explains the differentiated value that your product or service brings to the customer.
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