Pricing
Set or change a price. Cost gives the floor, competition the reference, and value to the customer the ceiling.
Practise a pricing case12 cases in the library
Price
- Cost-based: the floor
- Competitor-based: the reference
- Value-based: the ceiling
Price
Cost-based: the floor
Competitor-based: the reference
Value-based: the ceiling
Watch out: The three prices make a range; the client's goal (profit, share or reach) picks the point in it.
On a case
What should a water purifier rental cost per month?
Monthly rental price
- Cost-based: the floor
- Device cost over three years
- Filters and service visits
- Competitor-based: the reference
- Buying outright, per month
- Rival rental plans
- Value-based: the ceiling
- Bottled water spend it replaces
Monthly rental price
Cost-based: the floor
Device cost over three years
Filters and service visits
Competitor-based: the reference
Buying outright, per month
Rival rental plans
Value-based: the ceiling
Bottled water spend it replaces
Go deeper
How it is lost
Failing to Segment
Instead: Narrow by time, geography, product or segment before hunting for causes. An average hides the thing you are looking for.