ABSTRACT
Successful companies allocate money to develop people, processes and cultures and have the right people focused on finding innovation and on bringing that value to the market. Companies that employ a good value-based pricing strategy are 20 percent more profitable than those with weak execution on value pricing and 35 percent better off than those that follow a cost- or share-driven strategy. The pricing discussion must be part of the whole new-market development process, and it should provide that sober second thought that challenges the wild assumptions of engineers and product developers. The step is to determine what is of value to one's customers, creating products and services that deliver that value, quantifying that value, pricing for the value created and then communicating that value so that customers are willing to pay for it. The journey must begin with creating products and services that have customer value.
