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How to Price: An Examination of the Techniques

How to Price: An Examination of the Techniques

How to Price: An Examination of the Techniques and Strategies of Value-Based Pricing

Value-based pricing is pricing products and services according to the value of the benefits delivered to customers. The pricing industry has broadly accepted value-based pricing as superior to alternative paradigms. But how do executives functionally arrive at prices that are aligned with the principals of value-based pricing? What techniques do they use? What are the tradeoffs between the competing methodologies?  What process steps are executed to deploy these methods? And how can these methodologies be used to engage positive collaborations with product managers, salespeople, and marketing communications professionals?

In How to Price, we clarify the three industry-dominant pricing methodologies in practice today and their relationship to value-based pricing:  exchange value models, economic price optimization, and conjoint analysis. Each of these methodologies is an industry-proven, academically accepted best practice for addressing pricing challenges.  Each is superior in some cases but inferior in others. Each uses market research data to understand customer choices, but the sources of the data vary greatly.

Wednesday Workshop 6 (May 2nd)
Level 200 Workshop

Attendees will learn:

  • How to conduct a profit sensitivity analysis to inform pricing decisions

  • How data can be used to conduct economic price optimization

  • How to identify opportunities to increase profit through examining the relationship between prices and benefits

Mary DeBoni, CPP

Consultant, Wiglaf Pricing

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Kyle Thompson-Westra, CPP

Consultant, Wiglaf Pricing

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