Value can be delivered in many ways and in many forms. The value ladder tool helps define that so you can set price and communicate it to your customers.
- A price is nothing more than a piece of information.…A very important one because your customers…use it as a signal of value.…And the way customers think about is this.…If they perceive the value to be higher than the price…they'll buy your product or service.…If perceived value is equal to price…they may buy your product, but if value…is less than the price they won't buy your product.…But what is value?…It's the sum of all the benefits…the customer realizes from using your product or service.…
Benefits come in different forms,…some are economic in nature like saving money,…time, improved reliability and so on.…Some benefits are more functional in nature.…Faster, more convenient, more precise, for example.…And some benefits are more emotional or psychological.…For example, using a product might make you feel smarter…or more responsible or more respected.…Those are intangible, but still very real.…
In B2B pricing you have to identify…for your customer all these different sources of value,…the benefits and communicate along with your price…
Drew explains how to think about price when it comes to B2B business transactions-and understand the important relationship between cost, price, and value. He also shows how to define value, identify stakeholders, and link pricing to your overall marketing strategy. Plus, learn to use tools such as the value ladder and pricing tiers to gain leverage in price negotiations.
- What is B2B pricing?
- Defining value
- Linking marketing and pricing
- Creating pricing tiers
- Managing pricing competition