What is Value Based Pricing. What does it represent?

[Kross]

I have heard that beyond just using cost to price a product, one can also use value the customer is bound to get from that product to price it.

What are the parameters used to determine a value based price for a product or service? Can every business use Value Based Pricing?

 

[Augusta]

Value-based pricing is about companies basing their pricing on how much the customer believes a product is worth. Unique and highly valuable products are best positioned to take advantage of the value-based pricing model.

 

[King Belieal]

Value based pricing is based on active demand for your products. You use the general value that customers place on your products to determine how much you would sell it.

 

[Suba]

Valued based pricing is a method often applied to products that have a higher value than the production costs that must be incurred, so that pricing is based on the value and image felt by customers, especially for high-value products, such as Gucci, Hermes, Apple products, etc.

 

[Nomad]

value based pricing means you price the product according to the value it offers. You sell products that offer higher value for higher price.