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.
The question of how value should be split arises repeatedly in customer-value-centric organizations. It should be addressed in a thoughtful and systematic way. When building a product development or launch plan, teams debate feasible pricing ranges based on capturing value. Product teams who incorporate value into their discussions indicate that it helps them understand their positioning better and that it makes their decision-making customer-centric. In this article, the author presents several approaches to framing the value-capture questions and developing effective value-pricing strategies.
Despite the increasing industry-wide move towards and focus on value-based pricing, it is still clear that cost plus has its role as a pricing strategy in a number of instances. But even when a cost-plus pricing strategy is used, be careful about what the real advantages are, and what alternative strategies exist.
In this two-part article, the author discusses value-based pricing from both an organization-wide view and more specifically from the view of the product manager. He begins by reviewing what a value-based product strategy is, how it helps make better decisions, and helps differentiate your products from the competition. In the second part of the article, he explores the six common missteps product managers make about value and provides best practices for how to avoid these errors
When sales teams aren’t up-to-date on the value of your products, value-based selling methods, or the latest negotiation tactics, a vacuum is created that is filled with “training” messages from the folks they likely spend much of their time with: customer purchasing departments. In this article, the author explains why it is crucial for pricers to refocus sales teams with training and information that supports the value you bring to your customers.
In this article, the author explores how many businesses fail to include pricing research as part of their client and new product development research. He also points out the negative implications that often occur from failing to conduct pricing research and customer value perspective analysis.
Congress and the public have been very vocal in recent months regarding drastic increases in pricing from numerous pharmaceutical companies. In this article, the author analyzes these price increases, pharmaceutical industry pricing strategies, and influencing factors in the market.