In order to design and deploy value-based strategies, including value-based pricing, firms must be equally obsessed with obtaining deep customer insights and deep competitive information, as the author explains.
The purpose of this short paper is to share best practices for EVE® (Economic Value Estimation) models with the pricing and marketing communities.
In this article, the author reviews some of the issues engaged and practices suggested for making pricing recommendations based on Economic Value to Customer (EVC), and then offers the Half-Gains Double-Losses rule to define the capturable value from the EVC and therefore drive a price recommendation for guiding the pricing decision.