VALUE PRICING STRATEGIES TO INCREASE REVENUES

Value Pricing - What is it? How can it help you grow your business?

When you deliver quantifiable results for your customers and clients, they are happy. If you can demonstrate a strong return on investment for your customer doing business with you, they are happy. Value pricing creates happy customers.

Value pricing is a pricing strategy I first discovered almost three decades ago by a book by the same title, authored by Ron Baker. Value pricing has been used successfully by many businesses in different industries. It is a very powerful pricing program for B2B businesses because it is based on business results.

Value pricing aligns your offerings with the results your customers want.

The secret is being able to quantify the value and results you deliver for your customers in terms of financial benefits such as increased revenues or decreased expenses.

If you can implement a maintenance program for a company and save them one million dollars a year in break downs and emergency repairs, a cost of $200,000 for that program would generate a 400% ROI for your customer. The math is ($1,000,000-200,000)/200,000 = 4X.

Would your customers be happy to generate a 400% ROI in your services? Of course they would.

The benefits can be to business performance - beyond direct financial benefits - such as attracting new customers or employees, retaining customers, increasing market share, improving throughput, or helping employees be more engaged during these times of hybrid work arrangements.

The key is to measure the results. They can be objective or subjective.

When you provide a service, and you can measure the results you create, you have a very powerful foundation for value pricing.

What results do you create for your customers? How can you measure them?

To see more information about leading business growth, check out my new YouTube channel mentioned in the comment below.