"Value-based pricing can be much more than a pure pricing strategy"

Value-based pricing. What exactly is behind this approach? And how can it be used to identify competitive advantages? Produkt + Markt will get to the bottom of these questions in a web seminar as part of WdM, but also gives a glimpse behind the scenes in an interview.

Published on Marktforschung.de on 8 May 2023

Dr. Ludger Rolfes: 
All companies who would like to know more about how they can more effectively align product development, communication and pricing with the individual needs of their customers.

 

Dr. Ludger Rolfes: 
In my presentation, I will show how value-based pricing approaches can be used to identify and evaluate competitive advantages and how companies can use them to ensure greater price acceptance – particularly in the event of price increases.

 

Dr. Ludger Rolfes: 
Value-based pricing is primarily a pricing strategy in which prices for products or services are set on the basis of the value perceived by the customer - the customer value.
However, if the customer value is not only recorded for the product as a whole, but also for individual product features, this information can provide valuable input into targeted communications and sales collateral. So for example, these materials can be made to highlight the product features that are particularly valued by the customer.

 

Dr. Ludger Rolfes: 
With rising inflation and the general cost of living, a key objective for many current projects is to examine the scope for price increases.
Therefore in preparation for a value-based pricing strategy, we always determine the customer value of single product features in order to provide arguments for price increases and their implementation.
 

Dr. Ludger Rolfes: 
In many projects we already use value-based pricing in the concept or prototype phase of the innovation process. This allows us to identify at an early stage which product features customers value and to direct product development directly to those features that generate a competitive advantage.

 

Dr. Ludger Rolfes: 
After we have recorded the individual characteristics of a product to which a value is potentially attributed by the customer, we record the corresponding willingness-to-pay either via conjoint analysis or by determining the values of perceived price and performance differences between offers.
With the help of the CV Pricing tool developed by Produkt + Markt, data from different sources and methods can be processed and the advantages and disadvantages compared to competing products can be shown in monetary units. Recommendations for value-oriented communication and pricing can be derived directly from this.