Vision Report

The Value Of Value-Based Pricing

A Best-In-Class Approach To Making Customer-Focused Pricing Decisions

January 14th, 2022
Lisa Singer, VP, Research Director
Lisa Singer VP, Research Director
With contributors:
Sam Somashekar , David Morrison , Drew Zalucky

Summary

Setting the pricing and packaging for a B2B offering is a fundamental business management decision. Pricing decisions have major consequences for an organization’s revenue and profit, yet few product managers are skilled in this area and many make these decisions on the basis of costs, competitive pricing, or just plain intuition. Organizations must move to value-based pricing, which entails making pricing and packaging decisions informed by how buyers value the offering. In this report, we highlight the benefits of value-based pricing and preview our comprehensive approach to developing pricing and packaging that truly monetizes customer value.

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