Market/Value Based Pricing Services

Market/Value Based Pricing Services

Our value-based pricing engagements are designed improve your organization's competitive position. This is achieved by augmenting your ability to maximize, and - through better pricing - more fully extract the market value that your business delivers to customers.

SIGNS VALUE- BASED PRICING PROCESSES MAY BE UNDER DEVELOPED	Sales force being criticized for not being able to “sell on value” Sales force complaining the product/service offerings are not sufficiently competitive in certain market segments Accuracy of system prices being challenged as: too high in some situations, due to “product commoditization”, leading to loss of sales too low in other situations, as some segments of the market are believed to have higher willingness to pay than prices being charged

TYPICAL UNDERLYING ISSUES	Market value-based factors outweighed by cost- and/or pure competitive price factors in price setting algorithms Sales force not sufficiently equipped with tangible tools they can leverage in real-life customer-facing situations to justify price premiums using the value proposition

Common value-based pricing project objectives include driving improvement in the following areas:

ENHANCE INTERNAL UNDERSTANDING OF THE VALUE PROPOSITION

IMPROVE ALIGNMENT OF INTERNAL PROCESSES WITH VALUE PROP

MORE INTENSE LEVERAGING OF

VALUE PROP IN THE SALES PROCESS

Understand/measure perceived differentiated value of current/ contemplated offerings over competitive options, using tools such as:

economic value estimation models
interviews with sales force/customers
market surveys, etc.

Make direct linkages between (a) features of the offering, (b) qualitative description of related customer benefits, and (c) quantified hard dollar customer gains, such as customer $ cost savings and/or customer $ revenue lifts.

Improve market/value-alignment of price structure:

Realign/introduce new price metrics with customer value drivers (e.g., price by usage hour)
Align segmentation and price waterfall/discounting structures with customer value drivers (and optimize new waterfall elements).

Enhance alignment of product/offer configurations with variations in willingness to pay across customer segments through versioning/bundling of features, products and services.

Implement practical tools that help sales organizations:

confidently and convincingly communicate to customers the dollar value associated with customer benefit drivers
address price objections using value trade-offs in real world selling situations

Improve incentives and controls to ensure these tools are widely utilized:

update sales force incentive schemes to foster adoption of value based pricing/selling tools
implement “price fences” and price approval structures to ensure the price structure is not circumvented.

NEXT STEPS

Case Study: Click HERE for a case study describing the application of our market/value based pricing services at a mid-market wholesale distribution business!

Webinar: Click HERE to view our informative webinar titled "Getting B2B Distributor Sales Teams to Practice Value Based Pricing & Selling", where we review a proven, practical roadmap to implementing a value-based pricing/selling capability in B2B distribution!