Why B2B pricing is important

- Without a coherent pricing strategy,…in the business to business, or B2B arena,…your customers and potential customers…will be confused about how your products…and services deliver value.…B2B pricing is more complex than B2C pricing,…because the organizational buying unit…is usually more complex and sophisticated…than are individual consumers.…When companies buy products and services,…they're buying a collection of benefits.…

You can categorize those benefits into three types.…Functional benefit refers…to a product's physical performance.…For example, when buying a car,…functional benefits include the size of the engine,…passenger seating or how the car handles.…Economic benefits are related…to saving money or saving time.…With a car, economic benefits would include…the miles per gallon, annual maintenance cost,…or perhaps the car's reliability.…

And finally are emotional benefits.…These are related to the psychological feelings…you get when using a product.…For a car, it would include things…like status or self-esteem.…