Join Stefan Michel for an in-depth discussion in this video What is value-based pricing?, part of Value-Based Pricing.
- So the number one complaint I hear from my participants at IMD when it comes to 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 customers on price. "So despite the fact that we are better, "we don't capture the value that we co-create "with our customers." And my response to these participants is two-fold. First, complaining won't help, okay? Welcome to the reality, there are competitors out there who will undercut your price.
The second answer is it means that your customers are very smart. They get your superior product and service for the price of the low-cost competitor's. So what you need to do is to become better in value-based pricing.