October 1, 2021
Understanding Value Pricing, pt2
All you need to understand the concept of value pricing is to define the words value and pricing.
What is VALUE?
Value is the maximum amount a buyer would pay for a thing.
What is PRICING?
Pricing is the act of calculating how much you would accept in exchange for a thing.
So with these two definitions in mind, value pricing can be defined thusly:
Value pricing is the act of calculating how much you would accept in exchange for a thing, based on the maximum amount a buyer would pay for it.
Here’s the thing...
If this seems complicated, it’s not because you don’t understand the concept.
It’s because you don’t understand how to implement it in your existing business structure.