The cornerstone of pricing in industrial markets is the ability to quantify and document value. B2B pricing requires the ability to document in monetary terms ($/€/£/¥) how much incremental profits a proposed product or service delivers over the customer’s next best alternative.
In this online course we present proven methods and tools B2B pricing professionals can use to translate product features into customer benefits and into documented and quantified customer value. We illustrate how B2B pricing professionals can use customer input to quantify and document the monetary value of their own products and services versus the customer’s next best alternative.
Todd Snelgrove, a global leader in industrial bearings, illustrates how SKF conducts Total Cost of Ownership and Total Value of Ownership calculations to quantify customer value. Todd Snelgove also highlights how SKF justifies price premiums vis-à-vis competitors and how SKF is able to profitably grow with a product portfolio which carries significant price premiums vis-à-vis competitors.
This online course is especially beneficial for those B2B pricing professionals who wish to transit from cost/competition-based pricing towards value-based pricing and who want to improve their ability to justify their own prices with the value they deliver to customers.