Chapter 1 The Essential Ingredient for More Effective Digital PricingValue
John Porter
Setting the ‘right price’ has long been a conundrum for marketers. Many give lip service to value pricing, but most people building digital and SaaS solutions don’t fully understand the qualitative and quantitative value proposition for their customer. As a result, the specificity of cost-based pricing makes it easier and more appealing for many companies. It’s a formula: cost of goods + margin with a market/value gut check added for good measure.
The ongoing challenge of this approach is that there’s always someone willing to do something for less. Ultimately, companies will undercut their price, and benchmarking against tangential ...
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