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PRICING-STRATEGY5 MIN READ

Turn Economic Value Into a Defensible Price

Calculate a simple economic-value estimate and decide what share of value to capture.

You need to move from a vague value story to a price that reflects customer economics and still leaves the buyer better off. Reference alternative plus incremental value elements minus a fair share left to the customer equals a defendable price logic. The trap is to either capture too little because the team lacks confidence, or capture almost all the value and leave the buyer no visible upside for switching. Step 1 Set the next best alternative at $40,000 a year. This is the customer’s current spend or the closest substitute they would otherwise choose. Step 2 Add $36,000 of…

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