Pricing Table Topics: Jack of Spades – Value Is Not Based On Costs (opens in new tab)

This one is the Jack of Spades from the Impact Pricing card deck. Many companies use cost-plus pricing and that's understandable because it's easy. It guarantees they're going to make a profit for every sale they make. I get it. When we shift to value-based pricing, we start thinking about what's a buyer willing to pay us. And now, think about what a buyer is willing to pay and that value that they place on our product actually has nothing to do with the cost of us manufacturing it. In fact, ...