Value-Based Pricing: Drive Sales and Boost Your Bottom Line by Creating, Communicating and Capturing Customer Value by Macdivitt, Harry; Wilkinson, Mike;

Short description:

HOW DO YOU PUT A PRICE ON VALUE?

How does Apple get away with charging more for the iPad than its competitors charge for their tablets?


Why do Americans spend millions on bottled water when tap water is safe and free?


How much money are customers willing to pay for you and your product?

When it comes to pricing and selling in today’s consumer-driven market, the old rules no longer apply. This game-changing guide from two global business consultants shows you how to look beyond production costs, competitive rates, and other outdated pricing methods to create a value-based strategy that speaks directly to your customers. Learn how to:

• Promise—and deliver—real value to your customers.
  
  
• Build your own value-based pricing and selling plan.
  
  
• Implement a win-win strategy that out values the competition.

Filled with step-by-step checklists, charts, and fascinating case studies, Value-Based Pricing shows you how to appeal directly to your customers by offering more value per dollar than your competition. Even in a global market—with more consumer options than ever—you’ll know your price is right and your value rising.

Long description:

A Groundbreaking Pricing Model for the New Business Landscape

Why would any customer choose Brand X over Brand Y, regardless of price? In a word: Value.

When customers feel they are getting good value from your product or service, they are more than happy to pay more—which is good news for you and your business. Even in today’s global market—with its aggressive competitors, low-cost commodities, savvy consumers, and intangible digital offerings—you can outsell and outperform the rest using Value-Based Pricing. Done correctly, this method of pricing and selling helps you:

• Understand your customers’ wants and needs
• Focus on what makes your company different
• Quantify your differences and build a value-based strategy
• Communicate your value directly to your customers

Now more than ever, it is essential for you to reexamine the reality of the value you offer customers—and this step-by-step program shows you how.

Developed by global consultants Harry Macdivitt and Mike Wilkinson, Value-Based Pricing identifies three basic elements of the Value Triad: revenue gain, cost reduction, and emotional contribution. By delivering these core values to your customers—through marketing, selling, negotiation, and pricing—you can expect an increase in profits, productivity, and consumer goodwill. These are the same value-based strategies used by major companies such as Philips, Alstom, Siemens, and Virgin Mobile. And when it comes to today’s more intangible markets—such as consulting services or digital properties like e-books and music files—these value-based strategies are more important than ever.

So forget about your old pricing methods based on costs and competition. Once you know your own value—and how to communicate it to others—everybody profits.

A Groundbreaking Pricing Model for the New Business Landscape

Why would any customer choose Brand X over Brand Y, regardless of price? In a word: Value.

When customers feel they are getting good value from your product or service, they are more than happy to pay more—which is good news for you and your business. Even in today’s global market—with its aggressive competitors, low-cost commodities, savvy consumers, and intangible digital offerings—you can outsell and outperform the rest using Value-Based Pricing. Done correctly, this method of pricing and selling helps you:

• Understand your customers’ wants and needs
• Focus on what makes your company different
• Quantify your differences and build a value-based strategy
• Communicate your value directly to your customers

Now more than ever, it is essential for you to reexamine the reality of the value you offer customers—and this step-by-step program shows you how.

Developed by global consultants Harry Macdivitt and Mike Wilkinson, Value-Based Pricing identifies three basic elements of the Value Triad: revenue gain, cost reduction, and emotional contribution. By delivering these core values to your customers—through marketing, selling, negotiation, and pricing—you can expect an increase in profits, productivity, and consumer goodwill. These are the same value-based strategies used by major companies such as Philips, Alstom, Siemens, and Virgin Mobile. And when it comes to today’s more intangible markets—such as consulting services or digital properties like e-books and music files—these value-based strategies are more important than ever.

So forget about your old pricing methods based on costs and competition. Once you know your own value—and how to communicate it to others—everybody profits.

Table of Contents:

Chapter 1: What is Value?; Chapter 2: The Customer Value Line; Chapter 3: Basic Theory – What you really need to know; Chapter 4: Conventional Pricing Approaches – Cost Based Pricing; Chapter 5: Conventional Pricing Approaches – Competition Based Pricing; Chapter 6: Measuring the Triad; Chapter 7: Building the Value Based Price; Chapter 8: Review of VBP methods; Chapter 9: Building the Value Proposition; Chapter 10: Value Based Selling;Chapter 11: Building a VBP strategy; Chapter 12: Today’s pricing issues; Chapter 13: Legal issues in pricing in Europe