Value Modeling Creates Sustainable Value-Based Pricing

by | Aug 6, 2012 | Presales, Pricing, Why LeveragePoint?

One of ARDEX Americas’ marketing priorities is to measure differential economic value versus the competition by conducting systematic quantification of value drivers for its products and services. LeveragePoint, a cloud-based software solution for value-based pricing was recently rolled out to the marketing team, the national specifications team, and the sales leadership team following a successful pilot program that began early in 2012.

“Pricing is an important process for capturing value in the market,” says ARDEX Americas President & CEO, Stephan M. Liozu, who was invited to join the Advisory Board of the Professional Pricing Society. “To be successful, we must identify value drivers and key differentiators for each of our products. With LeveragePoint, we quantify what truly differentiates ARDEX versus competition, and build economic value stories that can be used during price negotiations, as well as during technical training and architectural presentations.”

LeveragePoint is a collaborative platform that enables B2B companies to build a value-based strategy that links value modeling, pricing setting, value communication, and sales negotiation. It consists of powerful tools that allow cross-functional teams (including product, pricing, marketing, and sales) to integrate product, customer, and competitive data to produce compelling and quantified value propositions. Unlike conventional value propositions, these are based on the tangible economic impact based on customers’ perceived value, and can be easily customized for specific customers or opportunities.

According to Greg Hunsicker, ARDEX Americas Pricing & Revenue Optimization Manager, LeveragePoint can boost pricing power by empowering ARDEX to negotiate on value, not just price. “LeveragePoint is a tool that allows us to tangibly demonstrate the economic viability of products to our customers and rationally justify our price premium by communicating clear value messages,” Hunsicker says. “We are now generating value models for every new product as part of the new product introduction process.”

“At ARDEX Americas, we are on our way to transform our pricing orientation from being predominately premium-based to being more based on customer perceived value. This is a practical step-by-step process,” Liozu adds. “LeveragePoint provides an integrated platform to have value conversations, discuss rationally our level of differentiation, and adjust our pricing strategies to the dynamic environment. Our R&D and innovation teams work very hard to develop new products, and we want to make sure we capture all possible value in the marketplace.”

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