Pricing: How to Price Based on the Value Provided?

Generating a trusting conversation with clients and identifying and presenting your own success stories is of utmost importance so that at the quotation stage a price is defined based on the value provided by the products and services.

Friday, May 14, 2021

According to Ariel Banos, founder of Fijaciondeprecios.com, exploring the method of defining prices based on the value for the client is a recommendable resource for those who hesitate about how much to charge their clients.

The pricing strategy specialist has identified three steps to understand the true value provided, and thus gain confidence when determining our price:

  1. Generating a value conversation: this is the instance prior to the quotation. The professional meets (physically or virtually) with the client to understand what the client really needs. The key questions are: What are the client's objectives? What is the transformation they are looking for? What would happen if the client did nothing?
  2. Identify your own success stories: We must survey cases of previous clients and learn how we have helped them achieve their objectives. How did their situation change after the implementation of our proposal? Additionally, obtaining testimonials from these satisfied customers helps to validate the value of the solution we are providing.
  3. Knowing third party success stories: Knowing cases of other professionals in our field, and how they help their clients to achieve the desired transformations, helps us to be aware of the type of impact we can generate in our clients. What kind of transformations do we have the potential to generate?

Recognizing the value that our services bring to the client gives us the confidence and security we need when quoting our proposal.

Also, it is important to understand that the price is neither more nor less than the retribution we receive in exchange for providing a solution for our client. When someone agrees to pay the defined price, they are telling us that our proposal is even more valuable than the money they are paying. See full article (in Spanish).



More on this topic

How to Know if You Can Raise Prices Successfully?

June 2021

If the products and services sold include aspects that are highly valued by customers and our prices have evolved below market rates, it means that it is feasible to raise marketing prices.

Ariel Banos, founder of Fijaciondeprecios.com, describes the signs that should be analyzed by businessmen at the moment of applying an increase in the prices of the products and services marketed.

How to Stop Competing Just for Price?

December 2019

Charging tariffs consistent with the positioning of the brand and communicating its differentials with respect to the competition, is essential to stop competing for price and redirect the strategy according to the value of the product.

Ariel Baños, specialist in price management and founder of Fijaciondeprecios.com, explains three strategies to avoid competing only for the price factor, because in these struggles there are no winners and only attract the least loyal customers.

When to Increase Prices?

November 2019

Convincing the sales team that the increase in the price of the product is necessary, and that they are able to convey the message to customers correctly, is essential when it comes to increasing prices when production costs rise.

Ariel Banos, specialist in price management and founder of Fijaciondeprecios.com, explains five strategies to increase product prices successfully, maintaining profitability and ensuring the viability of the company in the face of rising costs.

Keys to Stop Competing for Price

April 2019

Identifying a segment that values the differentials of the product or service and charging a price aligned with the company's strategy are essential to avoid competing with the lowest prices in the market.

Ariel Baños, specialist in price management and founder of Fijaciondeprecios.com, explains how through the implementation of an appropriate strategy, it is possible to compete in a market where there are suppliers who charge derisory prices.

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