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Value Based Pricing Strategy


​Setting the optimal price for products and services can be challenging for many organizations. Everybody from marketing, finance, sales, and the executive c-suite seem to have an opinion on what to charge. Value Based Strategy focuses on developing key organizational capabilities focused on how to create and capture value.  Executing a value based strategy starts by embedding customer value into key steps of your innovation process and continuing through your launch and go-to-market strategy. The end result is a pricing strategy that aligns price with the value your solutions deliver to customers.   
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Objectives

Outcomes

ROI

Watch Outs

  • Develop organizational capabilities that focus on customer value creation
  • Design offerings that are aligned with the value you deliver
  • Build new pricing capabilities 
  • Design a pricing structure to maximize profits
  • Develop and go-to market with solutions that are aligned with customer value
  • Ability to capture a fair share of customer value through price
  • Higher confidence in offering structure and price levels
  • Marketing and Sales team alignment with clear direction on how to sell and capture value
  • Ability to measure and demonstrate value to customers
  • The impact of a well executed value based pricing is significant, especially when over 70% of product launches fail to meet revenue and profit objectives according to multiple studies.    We estimate that the returns on investment ranges from 10x - 20x. ​
  • In addition, studies show that focusing on pricing can have a two to four-times greater impact on profits vs. customer acquisition and retention.
  • Embedding value-centric steps into your value creation and value capture activities may require a healthy dose of change management
  • You may face some skepticism or resistance from both product and sales team therefore taking a small step approach that targets "quick win" it is critical for success.  

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