From the course: Pricing Strategy: Value-Based Pricing

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Create, communicate, and capture value

Create, communicate, and capture value

From the course: Pricing Strategy: Value-Based Pricing

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Create, communicate, and capture value

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- Let's discuss the prerequisites for value-based pricing. Simply speaking, in order to capture the value you deserve, you first need to generate superior customer insights. With these insights you need to co-create more value with your customers. Thirdly, this value needs to be communicated through your value proposition, your sales pitch, and your branding. These three steps help you to increase the customer's willingness to pay. Once the customer's willing to pay a bit more for your service or product then you can cash in on your advantages. Or as a pricing expert would say, you can capture the value you deserve. So the number one complaint that I hear from my participants at IMD when it comes to value-based pricing, is that they say we are better than the competitor, we have a strong brand, we have good people, we have good products, good services, but we lose deals on price. So despite the fact that we are better, we don't capture the value we co-create with our customers. And my…

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