Best Practice Report

Making The Move To Value-Based Pricing

July 6th, 2018
With contributor:

Summary

Many B2B organization fail to consider the value of the offering to their buyers when developing pricing and packaging, often leaving money on the table. A focus on margins can also result in an offering being priced out of the market. B2B organizations can take steps to move from a cost-plus or competitive pricing model toward value-based pricing. To adopt value-based pricing, product managers must understand buyers’ value drivers and take simple steps to configure and price offerings to leverage their value. In this report, we define the benefits of value-based pricing and present recommendations for starting a transition to this approach.

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