Run time: 55 seconds
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When it comes to pricing your offering, understanding value changes everything. Are you pricing based on what your offering costs you to deliver, or what it’s worth to your customer? The latter is the secret behind value-based pricing and greater profitability.
What Is Value-Based Pricing?
This strategy focuses on the perceived value of your offering rather than production costs. Customers are often willing to pay more if they see clear benefits, such as time saved, improved confidence, or streamlined processes.
How To Get It Right
Understand perceived value – Assess how your customers see your product. For instance, shampoo brands selling “salon-like hair” charge higher prices by tapping into emotional and life-changing value.
Segment your market – different customers value different things. Try premium pricing for high-value segments and offer tiered packages for varied groups.
Test regularly – Experiment with pricing strategies and see how your audience reacts. Small changes can make a big impact.
You can rewatch or book onto the next Value Webinar for some value-based methods.
Or why not get the Customer Value Scope to deep dive into what your customers value? Next week we’ll move onto demonstrating value in your marketing, and I don’t mean by making it look cheap!
Resources
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