Pricing Strategy: Value-Based Pricing

Explore the benefits of value-based pricing, a strategy in which you set prices based on the perceived value to customers instead of on cost.

Introduction

• Pricing for value

1. Value-Based Pricing

• Charge what you deserve
• Improve your profitability with pricing
• Create, communicate, and capture value
• Compare value, not prices

2. Pricing Strategies

• Segment your customers for fencing
• Define your price carrier strategically
• Forget variable costs, radically

3. Pricing Management

• Discounts are double trouble
• Discounting is pain management
• Move from free to fee

4. Pricing Psychology

• Frame and anchor your price high
• Use decoys and mental accounts
• Play with loss aversion when selling

Conclusion

• Next steps