Pricing is the only moment of truth in value capture – Part 2 – How to do it
This note (parts 1 and 2) suggests learning from real world examples of value pricing for products and services. It is important to realize that they are the outcome of many years of trying and failing and trying again. An approach in 4 major steps is recommended:
- Understanding customer needs
- Comparing your own offering versus competitors
- Embedding value pricing in a value selling journey
- How to create fair sharing as a foundation for long term equitable economic benefits for all parties
The process starts with your belief that you (can) create real value for your customers. The challenge is that what you think the value is may, not be (fully) correct. So, you need to be a little schizophrenic about this. On the one hand fully convinced and driven that you can bring superior value, but at the same time open and self-critical to want to learn what your customer really needs.