Value Pricing Changes the Rules of the Game

Value pricing is gaining recognition as the superior pricing strategy for both new and existing offers. Companies understand the importance of moving away from the cost-plus pricing approach and aim to set prices that customers are willing to pay based on how they perceive value. However, many struggle to overcome the obstacles that developing and implementing a value-based strategy entails. This is part 4 of our Pricing Basics series.

A well-known example of successful value pricing is the IPhone. Apple users willing to pay more for their device compared to similar products on the market. Be it the luxury shopping experience in stores or the feeling of belonging to the Apple “community”, the higher price tag can be justified by the benefits customers receive from buying and owning the product, without focusing too much on the actual production costs.

As pricing experts, we often hear “But we’re a commodity, we can’t sell on value!” True, not…