Last week, pricing professionals gathered in downtown Pittsburgh to share insights, trends, and best practices for pricing. The event, hosted by the Western PA Pricing Professionals Group and The Pricing Cloud, featured a breakfast panel and presentations on topics that included the power of value-based pricing and best practices for value modeling. We observed three key themes that emerged from the conference:
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An organization-wide transformation to a value-based pricing strategy...
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October 19, 2012
October 16, 2012
This is a guest post written by Professor Rick Cardot, Director of Center for Pricing at the Simon Graduate School at the University of Rochester. The Simon School, known for its economics-based empirical and analytical research, has taken a unique approach to pricing by providing an unparalleled depth of pricing courses to its students.
Value based pricing is at the core of our pricing curriculum and we approach pricing from this perspective. Doing analysis and understanding the economics...
Value based pricing is at the core of our pricing curriculum and we approach pricing from this perspective. Doing analysis and understanding the economics...
October 09, 2012
We have all heard the rhetoric. If these marketing guys had a target on their backs they would understand what pressure was really like! The sales team is just lazy. They never follow up on our sales leads (goal dust). Or if they do it’s two weeks later when the leads have gone cold. If only our marketing department understood the product we might see some decent brochures, some decent web site copy, some real leads.
And so it goes on. A disconnect occurs. It seems they are on different sides...
And so it goes on. A disconnect occurs. It seems they are on different sides...
October 04, 2012
Strategic pricing experts advise B2B companies to set prices based on their tangible economic value. This approach, known as Value-Based Pricing, has proven to be more profitable than either traditional cost-plus or competitive pricing methods. But how do you measure economic value? It begins with a value model, which quantifies that tangible, economic value of your product.
In this video, we'll explain some key value modeling concepts. Plus, we'll show how anyone can build a value model in...
In this video, we'll explain some key value modeling concepts. Plus, we'll show how anyone can build a value model in...
October 01, 2012
Companies often struggle with the critical but difficult task of quantifying the economic value their offering brings to their customers' bottom line. The following is an excerpt from Stephan Liozu's article "Value and Your Business", which was originally published in the September 2012 edition of Smart Business, and provides practical steps for accomplishing measuring value.
Why is it that few suppliers in business markets are able to define and measure value?
In a 2008 survey of business...
Why is it that few suppliers in business markets are able to define and measure value?
In a 2008 survey of business...