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.
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Demonstrated value-based pricing and pay-for-performance for differentiated products/solution should be expected to emerge, c.
For example, when marketers are faced with the opportunity to adjust prices on generators during an extended power outage, the marketer who has adopted a value-based pricing approach could justify increasing their prices because their customers now value the product more than they did before the power outage.
"The report recommends value-based pricing for better pricing agreements between companies and governments, so we can have drugs that are priced according to its value," Gihan Hamdy Elsisi, Head of Pharmaceutical Unit, Ministry of Health, Egypt, told Khaleej Times on the sidelines of the launch of the report.
Unless an interpretive program is very generic, in most cases value-based pricing is the best strategy for maximizing attendance and capturing the economic value of the program to participants.
"The fact that an entrepreneur is publicly pushing the envelope around a branding and value-based pricing opportunity, I would say that's in the water in Seattle," Carlyle said.
Prof Dyfrig Hughes, an author of the research, said: "Singling out cancer seems to be unfair, but is something which will hopefully be addressed in the value-based pricing system, which has public support."
This brings us to FA Insight's second observation: "In 2010, 56% of all firms reported employing some form of a value-based pricing structure.
Medical Marketing Economics specializes in the development of value-based pricing and reimbursement strategies for biopharmaceuticals worldwide.
The new breed of MDM solutions addresses this issue with value-based pricing.
Addressing the forum's opening session,Eli Gelman, president and chief executive officer of Amdocs Management Limited,said that the future presentedservice providers the opportunity to capitalize on new business models such as value-based pricing for content.
She's narrowed her choices down to product-cost unbundling and value-based pricing as the two primary options.