Value-Based Pricing


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Value-Based Pricing

A method of pricing a product in which one estimates the value of the product to the customer. That is, rather than considering the cost to the company and marking up according to some formula, value-based pricing looks at factors such as how many customers want the product, how badly and how often they want it, and determine the price from these data.
References in periodicals archive ?
The psychology of value-based pricing comes into play when potential participants can judge a difference among programs.
In order to eliminate this competitive disadvantage and provide a more accurate reflection of the product's superior value, Tinya needed to evaluate the two pricing strategies that the consultant had recommended: product-cost unbundling and value-based pricing.
In that respect, the addition of value-based pricing to current cost and risk-oriented practices is becoming a top priority for credit unions to ensure long-term financial health, and thus the ability to serve their members for many years to come.
Value-Based Pricing sets drug prices using a relative value metric, where each drug is compared to other drugs to assess whether the improved safety-profile or efficacy is worth the additional cost.
Value-based pricing would also give companies stronger incentives to invest in drugs for those medical conditions where there is greatest need, the watchdog said.
Value-based pricing ties an EAP's fee to its accomplishments and utilization, thus creating an incentive for the EAP to be proactive and significantly affect an organization's health and productivity.
Roberts: This position allows me to work closely with our global marketing group and marketing peers in other business units to develop a strategic plan and a value-based pricing model for each brand.
XACCT Technologies, a provider of network data management platform for global communications service providers, recently announced that Fusion Communications Corporation, a provider of Voice over Internet Protocol (VoIP) service in the Asia-Pacific region, has deployed XACCT's real-time "Network-to-Business" (N2B) software platform to implement value-based pricing models for their services.
In addition, Revionics is helping Family Dollar balance competitive and value-based pricing with profitability.
Spark City is an ethos-driven niche market company providing value-based pricing strategies and services to premium and luxury brands.
Roche s broad portfolio allows for flexible commercial schemes and value-based pricing.