Value-Based Pricing, step by step
Setting a value-based price.
- Identify the reference alternativeWhat the customer would otherwise do, including nothing.
- Quantify the differenceTime saved, revenue gained, risk avoided, in their numbers.
- Establish the value gapReference price plus the quantified difference.
- Decide the shareHow much of that gap you capture and how much they keep.
- Test with real buyersWillingness to pay research, then live pricing tests.
Capturing the whole value gap leaves the customer indifferent. Leaving some is what makes the purchase worth making.
Questions about the Value-Based Pricing poster
- What’s on the Value-Based Pricing poster?
- 5 numbered steps. Setting a value-based price. Identify the reference alternative — What the customer would otherwise do, including…; Quantify the difference — Time saved, revenue gained, risk avoided, in their numbers.; Establish the value gap — Reference price plus the quantified difference.; Decide the share — How much of that gap you capture and how much they keep.; Test with real buyers — Willingness to pay research, then live pricing tests.. Capturing the whole value gap leaves the customer indifferent. Leaving some is what makes the purchase worth making.
- Who is the Value-Based Pricing poster for?
- Value-Based Pricing belongs to the Marketing section rather than to a school year, because business is not something one grade owns. Anyone learning pricing can pin it up — a beginner, a student mid-course, or someone revising years later.
- When should you use the Value-Based Pricing poster?
- Cost tells you the floor. Only value tells you the ceiling. A wall chart earns its place by being glanceable from where the work is happening, so Value-Based Pricing belongs on the wall where that business work actually happens, within glancing distance, rather than filed away.
- What other posters go with Value-Based Pricing?
- Researching a Price, Bundling and Competitive Pricing sit alongside Value-Based Pricing in the Marketing section. Printed together they make a wall rather than a single sheet, which is how a reference set actually gets used.Researching a PriceBundlingCompetitive Pricing
- Is the Value-Based Pricing poster free to download and print?
- Yes. Value-Based Pricing downloads as a free PDF with no account, no email and no watermark, like everything else in the Marketing section. Print as many copies as you like for a home, a classroom, a library or a tutoring group; reselling the file is the only thing the licence rules out.Read the licence
- What size does the Value-Based Pricing poster print at?
- Value-Based Pricing is a vector PDF laid out for US Letter, and prints on A4 with Fit to page — the same file, no separate download. Because every mark on it is drawn rather than photographed, it stays sharp enlarged to A3, A2 or A1 at a copy shop. Colour carries emphasis only, so a greyscale print of Value-Based Pricing loses nothing.Printing guide
Related posters
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