Pricing according to internal costs is set based on business expenses but does not take into account the benefits it may produce for customers. l Pricing according to competition takes competitors as a reference and sets prices based on them. l Demand-based prices take into account what customers value about a product or service. l Finally, a new value-based pricing strategy emerges , which takes into account the price sensitivity of each segment and applies the price that the consumer is willing to pay at each purchasing moment. It entails the dynamism of prices, as well as the use of discounts, sales, etc. to boost sales . How to set value-based pricing The prices of commodities, poorly differentiated and homogeneous products and services , are the fundamental variable to attract customers . Since there is no determining value in the products or services, the only thing that will make the difference will be the price. This does not mean that the low-price consumer accepts something of poor quality, but rather that he or she looks for something that has an optimal relationship between quality and price, that is, it will have to fulfill its function in a satisfactory manner for a time.



However, in the value-based pricing market, the opposite is true. The real or perceived value of the product or service is what determines its price. For example, imagine what the price of an original but unbranded Louis Vuitton bag Paraguay Mobile Number List would be. Its intrinsic value would be the same, but the lack of its identifying mark would make its price drop. A rational buyer would value more its quality, its finishes, its composition, its durability and would not care so much about the brand. But for a consumer who values ​​as a main attribute the admiration that a product with these characteristics can awaken in others, without a brand it would have lost all its value. Therefore, undifferentiated products rely on price to attract customers due to an absence of significant value in the products. If you sell this type of goods, only by adding value in their marketing can you raise prices, that is, provide excellent service or some other attribute that adds value to the customer.







The biggest problem is determining that differential advantage that will translate into the value perceived by the customer. How much is that value that you contribute to the market worth in Euros? That differential advantage is what your brand brings to your client. And the pricing strategy in this value-oriented market is what your client is willing to pay for the benefit you bring them. Factors that influence Value Determining a relationship between quality/price variables can be complex due to the extensive offer on the market. But we can highlight some characteristics to define the value. On the one hand, the value will depend on some of these factors: Z Brand: The seduction provided by what the brand represents constitutes an expression of value. It can be about the brands you market or what your business represents as a brand in the market. Z Origin: There is added value in the origin of certain products; French fashion, Italian footwear, Scandinavian design, Japanese cosmetics... Local production also provides added value for many consumers.