April 27, 2011 - Watch Now
Value-based pricing is regarded as a best practice that's essential for driving profitable growth in B2B companies. So why hasn't it been more widely adopted? Some experts claim that implementing value-based pricing is a lengthy, difficult process that requires tremendous sophistication which is just too much for most organizations.
We believe that by literally putting the right technology into the hands of the people who can leverage it, a value-based pricing strategy can be implemented rapidly to realize profitable growth. In this 30-minute webinar, see how accessing our collaborative SaaS platform on a tablet makes it easy for sales and marketing to communicate and capture the economic value you deliver to your customer's bottom line.
There is ample evidence that value-based pricing has a big impact on performance. See for example "Building a World Class Pricing Capacity" by John Hogan.
But recently Mark Burton, co-author of Pricing With Confidence and a partner at Holden Advisors blogged on Why Value-Based Pricing is Overrated. Reading this, what he is really saying is that while full-on value-based pricing should be every firm’s objective "implementing a sustainable value-based pricing program is extremely difficult and can take years to become standard practice in the organization. It requires sophisticated knowledge of the economic benefits received by customers; changes in market research, how competitive strategies are conceived, product management, sales practices, and incentive systems". Stephan Liozu has investigated some of the challenges that industrial organizations face in adopting value-based pricing in his paper "Pricing Orientation in Industrial Markets."
This has not been our experience. Companies that have adopted our collaboration platform have been able to build value models (using the EVE approach), translate them into value communications packages, and then have sales use these packages to connect price and value with the buyer in a matter of weeks. Give people a work environment that supports value-based pricing and they will move to adopt it. And with the growing popularity of tablet computers like the Apple iPad, there are better ways then ever to put the power of value-based pricing to work.
Previous LeveragePoint webinars
- Dealing With Rising Commodities Prices with Dr. Tom Nagle
- Value-Based Pricing in Sales and Marketing Communication
- Value-Based Pricing in the New Product Development Process
- Avoid Discounting Using Value-Based Pricing
- Getting Your Organizatoin Aligned Around Value with Dr. Tom Nagle
