Price the Outcome, Not Your Effort
Explain why value-based pricing anchors on customer outcomes rather than supplier effort or internal cost.
The product is not the value. The customer’s changed economics are the value. Start with the next best alternative Value only exists in comparison to what the buyer would otherwise do: keep the old tool, use headcount, accept more risk, or buy a competitor. Estimate the value elements Quantify time saved, errors avoided, revenue gained, and strategic upside where possible. These value elements create the envelope for price. Capture a share, not all of it If you capture every dollar of created value, the buyer has no reason to switch. Strong pricing leaves the customer clearly better off while still…
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