Abstract
Creating a value pricing culture and methodology requires more than just a CEO’s edict. It requires a thorough look at the people, processes, technology, and culture of your company. Once you have analyzed and challenged yourself if you create real customer value, then you can look at ways to enable customer’s willingness and ability to pay for value by quantifying your value and entering into value- or performance-based agreements.
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Adapted from T.C. Snelgrove and J. Anderson, ‘Muddling through on customer value in business markets?’, in A. Hinterhuber and T.C. Snelgrove (eds), 2016, Value First Then Price: Quantifying Value in Business-to-Business Markets from the Perspective of Both Buyers and Sellers, Routledge, New York, Fig. 7.2, p. 77
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References
Hinterhuber, A., and T.C. Snelgrove. 2016. Value First Then Price: Quantifying Value in Business-to-Business Markets from the Perspective of Both Buyers and Sellers. New York: Routledge.
Monitor Group (2011) Operating profit relative to industry peers [Figure 3]. In Pricing Capability Study. http://www.monitor.com.
Snelgrove, T.C., and J. Anderson. 2016. Muddling through on customer value in business markets? In Value First Then Price: Quantifying Value in Business-to-Business Markets from the Perspective of Both Buyers and Sellers, ed. A. Hinterhuber, and T.C. Snelgrove. New York: Routledge.
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Snelgrove, T. Quantified value first, then price: realizing the positive impact of a value pricing strategy. J Revenue Pricing Manag 17, 41–44 (2018). https://doi.org/10.1057/s41272-017-0132-y
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DOI: https://doi.org/10.1057/s41272-017-0132-y