Value Based Pricing
When customers feel they are getting good value from your product or service, they are more than happy to pay more, which is good news for you and your business. Even in today’s global market, with its aggressive competitors, low-cost commodities, savvy consumers, and intangible digital offerings, you can outsell and outperform the rest using Value-Based Pricing.
This method of pricing and selling can help you:
- Understand your customers’ wants and needs.
- Focus on what makes your company different.
- Quantify your differences and build a value-based strategy.
- Communicate your value directly to your customers.
Now, more than ever, it is essential for you to re-examine the reality of the value you offer your customers – and this step-by-step book shows you how.
Developed by global consultants, Harry Macdivitt and Mike Wilkinson, Value-Based Pricing identifies three basic elements of the Value Triad: Revenue Gain, Cost Reduction, and Emotional Contribution.
By delivering these core values to your customers through marketing, selling, negotiation and pricing, you can expect an increase in profits, productivity, and consumer goodwill. Forget about your old pricing methods based on costs and competitors. Once you know your value and how to communicate it to others, everybody profits!
“This is one of the best texts on this topic I have run up against so far. First, the descriptions of pricing and how it is arrived at are succinct, clear and bang on the money.
Second, this is the first pricing book that really identifies how many objections that sale can find with changing the pricing strategy as well as the huge obstacle that sales is to implementation. Then they do show you how to capture customer value in order to extract the price you deserve.
The case studies at the end of the book are a bonus for those serious about implementing value-based pricing. This is a must-have reference for sales and marketing organizations as well as CEOs. Plus, with both authors from the UK, they do not waste a word- it is all clear and valuable.”
The Challenge of Value
First, you must understand your customer and what is important (i.e., valuable) to them personally and to their business, in terms of the three elements of the Value Triad©.
Second, you must understand your competition and how you are different from them on those issues that are important to the customer.
Third, you have to quantify the monetary and emotional value (both positive and negative) of these differentiators.
Finally, you have to construct a Value Proposition that clearly explains the differentiated value that your product or service brings to the customer.
At the end of the day, customers will only buy your product or service, if they understand the value that you offer and feel they have a reasonable chance of receiving that value if they purchase.
That is the challenge many businesses face. But now, with this book, you can understand and utilise value effectively for your customers and your business.
“The contents of this book are at the very heart of understanding value. As a result, I think it would be extremely helpful for readers wishing to understand and implement value in their own organisations.”
The Seven Challenges of Value
In The Seven Challenges of Value, you will discover the key steps to understanding, creating and delivering outstanding Customer Value.
Each of the challenges addressed are important to tackle, especially if you want to deliver outstanding value to your customers and capture some of that value to help you improve your own margins and profitability. This little book will help you achieve a greater perspective, as it guides you on the value journey and uncovers some of its secrets.
From understanding value through to the Value Sales Process and the creation of your Value Proposition, this book is an invaluable source of inspiration, as you take on one of businesses’ great challenges – The Challenge of Value.
“Many talk about value and value-based pricing but very few have been successful implementing this. This book takes a very pragmatic and concrete view on how to go about this in reality and what the real issues are. This has become mandatory reading for all my sales team.”