In my 15-plus years of working with companies & teaching courses on pricing strategies to MBA students, I have found value-based pricing (also known as “value pricing”) to be the most commonly discussed concept that’s also the most misunderstood one. It creates more confusion among marketers, even many pricing experts, than any other pricing concept. What is more, these misconceptions often lead companies to shy away from using it, instead settling for cost-based or other pricing methods that leave money on the table.
A Quick Guide to Value-Based Pricing
Reviewing how to calculate it and dispelling misconceptions.
August 09, 2016