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Bangkok Post, Thailand, Executive Agenda Column.
Byline: A.T. Kearney
Nov. 5--In our last column, we talked about the concept of value-based pricing as an alternative way of thinking about product and service pricing decisions. Companies take this approach for several reasons. Some are looking to optimise revenue from value-based pricing, while others simply want a sound mechanism for focusing their product development, sales and marketing teams on truly understanding what matters to customers, and for what they are willing to pay.
On the surface, the basic steps for adopting value-based pricing are straightforward: (1) Understand the customer's economics, (2) quantify the full value that your offering can create for the customer, (3) clearly communicate that value, and (4) set prices that fairly split the value between you and your ...
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