Value-pricing: 12 key points for implementing strategy
3rd May 2022 | Journal Of Sales Transformation
Value First, Then Price: Building Value-Based Pricing Strategies, edited by Andreas Hinterhuber and Todd C Snelgrove, is the definitive book on value selling. To celebrate the publication of the second edition we have interpreted some of the main points in one of the key chapters of the book: “Quantifying your value so customers are willing and able to pay for it”.
As Warren Buffet once said, “Price is what you pay. Value is what you get.” From a sales perspective, however, it is important to ask how you get paid for the value you created. In the latest edition of his book, Todd Snelgrove acknowledges that this question has been asked by every premium player in every market of the world. Given the financial benefits of value creation and pricing, why do so many companies fail to achieve their desired results after they’ve done the work to create something of value?
1 PV ≥ Cost = Action
If the perceived value of something exceeds the cost, then likely you will have a sale.