Move from Cost-Plus to Value-Based Pricing

Posted by Mayuresh Saravanakumar on Mar 15, 2018, 6:01:00 AM
Mayuresh Saravanakumar
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Celebrating 10 Years of Pricing with Confidence (video 10 of 11)

Mayuresh Saravanakumar explains Rule Nine: Take Simple Steps to Move from Cost-Plus to Value-Based PricingPricingconfidencebookcover

The goal with value-based pricing is to take an outside-in view starting with the customer and their market.  I hope you've learned through this series that value-based pricing is bigger than "just pricing."  This outside-in view will help you craft your value strategies in the products you create (Rule Six) , the markets you target (Rule Seven), the messages you deliver (Rule Two), the way you sell (Rule Eight), and how much you get paid (Rule Three).    

Value-Based pricing is an end goal and not all companies can or should implement it.  But those companies that do often see a return higher than those who don't. It also takes time to get there.  Over the long-run, you will build that confidence in the value you create for customers and the prices you charge.  

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Topics: Pricing with Confidence, Celebrating 10 Years of Pricing with Confidence