Archives posted in: Pricing
Value-based pricing talks about pricing based on whether a product provides more or less perceived value with respect to the next best alternative. In the case of professional services however there is a slight difference — since there is the “human touch” involved we can’t be sure whether the next best alternative is a true alternative at all.
More Given the current currency fluctuations and country specific economic situations, what problems do they create for firms and how are prices supposed to be managed across boarders today? These are the pertinent questions facing many of today’s executives.
More Cost-plus pricers believe in understanding the cost of making a product and then adding a profit margin on top of the cost to arrive at the price of the product. Value-based pricers on the other hand are not keen at looking at cost or a target mark-up. Instead they focus on realizing the value that the product brings to the customer and then pricing it according to the value.
More I met a person who hated value based pricing last week. He was in procurement. Where can a value-based pricing advocate find agreement with an anti-value based procurement officer?
More When every opportunity is studied using Economic Value Models and priced totally based on the value delivered (and agreed upon with customer), we are heading towards a situation of easier wins leading to eventual revenue growth and market share increase.
More Retailers and distributors can’t do value-based pricing for one simple reason: too many products.
More A woman is suing P.F. Chang’s for charging $1.00 more for gluten free menu items. Is this price discrimination? Should PF Chang’s charge their gluten free customers more?
More After a firm adopts value based selling it comes face to face with the next big challenge: How to manage the process of value based selling?
More Customer satisfaction has become one of the most discussed leading indicators of business growth and profitability. But is this real? Does it last?
More GE has long been known as a process firm, but what processes do they use when it comes to pricing? What do pricing initiatives look like at GE Oil & Gas Subsea Systems? Who contributes to those pricing decisions? How does the pricing function fit within the larger organization? What pricing decisions does the pricing function directly engage? What techniques and tools have been found useful for pricing at GE Oil & Gas Subsea Systems? And are there any external resources that they have found particularly useful?
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