Value-Based Pricing

Value-Based Pricing

Value-based Pricing is widely considered the best pricing strategy, as it allows you to price as high as you can, rather than relying on internal factors such as e.g. costs to set a price. However, value-based pricing also often requires more work, more data and more general effort to be properly implemented.

The right price for a new product or product version is one that is aligned with the target group’s willingness to pay. For a new product, this can be daunting as there is no historical data or consumer insight to use for determining this willingness to pay, and moreover, it is difficult to anticipate what target group will value the product the highest, and consequently pay the highest price.