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An
increasing number of companies are basing their prices on the product’s
perceived value. Value-based pricing uses buyers’ perceptions of value,
not the seller’s cost, as the key to pricing. Value-based pricing means
that the marketer cannot design a product and marketing program and
then set the price. Price is considered along with the other marketing
mix variables before the marketing program is set.

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More
and more, marketers have adopted value pricing strategies, offering
just the right combination of quality and good service at a fair price.
In many cases, this has involved the introduction of less expensive
versions of established, brand name products. Campbell introduced its
Great Starts Budget frozen-food line, Holiday Inn opened several Holiday
Express budget hotels, Revlon’s Charles of the Ritz offered the Express
Bar collection of affordable cosmetics, and fast-food restaurants such
as Taco Bell and McDonald’s offered “value menus.” In other cases, value
pricing has involved redesigning existing brands in order to offer more
quality for a given price or the same quality for less.

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Question: Consider products that you have purchased. How would you use “Value-Based Pricing” to create competitive advantage?

How to sell Value vs. Price”

https://www.youtube.com/watch?v=eu8dN4n_eV8

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How to Sell Value ot Your Pricing

https://www.youtube.com/watch?v=VCQjTHWl3aE

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