Explore various pricing strategies, including cost-based pricing, value-based pricing, and competition-based pricing, to determine the best approach for your products or services.
Value-based pricing requires the estimation of the economic value of a product: to what extent does a good or service provide additional value to a consumer? Estimating differentiation value requires strategic approaches towards measuring monetary and psychological value.
Discover how to calculate economic value, a core concept in value-based pricing. Learn to determine reference value, differentiation value, and their impact on optimal pricing
Understand the crucial role of economic value in setting prices. Learn the difference between use value, economic value, and how differentiation impacts pricing strategies.
Due to the many special considerations surrounding the pricing of services, traditional pricing strategies such as penetration pricing, competitive pricing, and premium pricing may not be suitable… we will take a look at emerging alternative service pricing strategies.
Explore when and how to implement price increases or decreases, including the importance of maintaining customer trust and brand image.
Understand Pricing Psychology
Learn how pricing influences customer behavior. Use targeted strategies to create a sense of value and urgency.
Explore contrasting pricing strategies for new products: price skimming for high initial profits vs. penetration pricing for rapid market share gains.
Cost-based pricing involves setting prices based on the costs for producing, distributing and selling the product. But costs represent the other extreme: costs set the floor for the price that the company can charge.
Customer value-based pricing is considered to be the best pricing strategy… When a customer buys a product, he exchanges something of value (the price) to get something of value in return (the benefits of having or using the product or service).
