Archives tagged: value-based pricing
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 Retailers and distributors can’t do value-based pricing for one simple reason: too many products.
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 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?
More Does value-based pricing work in highly competitive environments, even retail environments? When competitive discounting happens, like Black Friday, does the concept loose meaning? Let’s take a look.
More Value-based pricing aims to price offerings according to the value customers’ associate with the offering in comparison to its alternatives. This is a…
More Value-based pricing aims for prices to reflect the value customers associate with a product or service offering. Simple enough to state, but what does this mean?
More In free markets, competition is the norm, not the exception, and that competition will limit your latitude for pricing. When competitors lower prices or new competition enters at a lower price, many a novice manager’s gut reaction is to lower prices—but the cost of price concessions may be higher than the cost of customer losses. Experience will temper these beginner instincts over time, but there must be easier and less costly ways to identify the proper reaction to competitive price moves… Enter the Strategic Pricing Reaction Matrix.
More How are leading companies getting pricing done? What kinds of challenges should the pricing function address? Who should be engaged, and with what sorts of tools and techniques? Find out more in this interview with an industry leader.
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