Total Credits: 1 including 1 Business Management & Organization
When a company has a unique, well-differentiated product, understanding value from the customer's perspective becomes the most important factor in profitable pricing. Yet, many organizations adopt a "value pricing strategy" without having performed the analysis to understand either how much they could get for their products or the minimum acceptable price.
This session discusses four techniques for understanding value and two cases which will allow application of the lessons learned.
*Understand four techniques for understanding the customer's perception of product value
*Value's role in product pricing
*When a value pricing strategy is and is not appropriate
*Four techniques for understanding value:
- Expert judgement
- Customer surveys
- Price experimentation
- Analysis of historical data
|PFP Understanding Value 0217 (1.07 MB)||11 Pages||Available after Purchase|
|PFP Understanding Value Case 0217 (0.10 MB)||2 Pages||Available after Purchase|
John L. Daly, MBA, CPA, CMA, CPIM, is a Chelsea, Michigan-based management consultant specializing in costing, pricing strategy and pricing model development. He has taught continuing professional education courses since 1995 and began doing ethics seminars two weeks before the Enron scandal. John has been CFO for a Tier 1 automotive parts supplier and a large restaurant chain and COO for a window treatments manufacturer and retailer. He is the author of Pricing for Profitability, published by Wiley and Sons.
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