Value-based pricing is a customer-centric pricing approach. It sets the price of a product or service based on the value given by target customers and what they are willing to pay.
Most companies have a cost-plus approach (where prices are based on costs), a competition-based approach (where prices are based on competition) or a historical approach (where prices are changed each year based only on previous prices). But you know that your customers are all different and have different sensitivities. It is essential to measure it so that you do not under- or over-price and to find ways to differentiate your prices.
You are about to launch a new product or service and you have no idea how to price it? Avoid any pricing mistakes that could have a negative impact on the success and growth of your project.
With the value-based pricing approach, we can measure the willingness to pay of future customers prior to launch. It allows us to refine your value proposition, prepare the marketing and sales strategy and better forecast your growth.
You need to review your pricing or you're not sure the current one is the right one?
With the value-based pricing approach we can validate or invalidate your assumptions and investigate new pricing models. With our data driven approach, we can assess the impact of a pricing change on your revenue and profit.
You will continuously improve your product or service based on what really matters to your customers and what they are willing to pay for.
You will know which customer segments value your product or service the most and how price sensitive they are.
You will know how to manage your sales effort and negotiate by properly defending your value proposition.
You will better understand the impact of a price change on your volume, revenue and profit.