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Written by Andrei Sandu
  on February 8, 2022
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I suspect you have already heard many times about value selling, value-based pricing or variations of these, either from me or from other people.
I suspect you have already heard many times about value selling, value-based pricing or variations of these, either from me or from other people.
 
In theory, it sounds reasonable enough.
 
But what does it mean in practice?
What does it mean in a software services context? 
What is the difference between value-based pricing (VBP) and cost-based (CB), if we look at the pricing journey, step by step?

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The result of this analysis is, at a minimum:
  • a list of problems that customers need to solve
  • how much they are willing to pay to have the problem solved by a vendor, as an estimated interval
  • which services and attributes do the potential customers value, why and how much
“In 2007, a trend began that would soon be recognized as a once-in-a-century transformation in the way business is transacted: from buying products to subscribing to services. We call this new business environment the “subscription economy.””
This is a newsletter about pricing as a force for good in the software services industry.
 
It has an audience of entrepreneurs, managers, PMs and developers.
Updates go out every Monday at 4:20pm CET.
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