Using Value Levers As A Component Of Pricing Strategy

Many organizations instinctively resort to discounting when prospects and customers push back on price or hesitate to make a final purchase decision. During negotiation, consider using value levers that do not result in decreased revenue from the purchase. Product managers must lead the process of gaining alignment and agreement with other functions on which value levers to use, and when and by whom they can be offered. In this report, we present an overview of four types of value levers that can be utilized instead of straight discounts as a part of overall pricing strategy, along with recommendations for how to select the appropriate levers to use.