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Explore the benefits of value-based pricing, a strategy in which you set prices based on the perceived value to customers instead of on cost.
Are you charging the price you deserve? You might be able to increase revenue through value-based pricing, a strategy in which you set prices based on the perceived value to customers instead of on cost. In this course, IMD professor Stefan Michel lays out the differences between cost-based and value-based pricing, while detailing the key capabilities of value-based pricing: superior customer insights, an understanding of your market, and the abilities to manage prices and apply pricing psychology. Along the way, explore the benefits of customer segmentation and the concept of pricing as pain management, as well as how to apply psychological principles to affect how customers perceive prices.
Overview
Syllabus
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Introduction
- Pricing for value
- Charge what you deserve
- Improve your profitability with pricing
- Create, communicate, and capture value
- Compare value, not prices
- Segment your customers for fencing
- Define your price carrier strategically
- Forget variable costs, radically
- Discounts are double trouble
- Discounting is pain management
- Move from free to fee
- Frame and anchor your price high
- Use decoys and mental accounts
- Play with loss aversion when selling
- Next steps
