ABSTRACT

Winner of the Overall Case Award 2014

The Case Centre best selling case 2013 - 2017

Value-based pricing—pricing a product according to its value to the customer rather than its cost—is the most effective and profitable pricing strategy. Buyers need to evaluate the monetary benefits of a product against the price of its competitors. Sellers justify their price points through documenting the value of a product, emphasising its superiority against competitors and therefore justifying the premium price.

Value First then Price is an innovative collection which proposes a quantitative methodology to value pricing, and road-tests this methodology through a wide variety of real-life industrial cases. It provides a state-of-the art and best practice overview of how leading companies quantify and document value to customers. In doing so, this book provides researchers with a method by which to draw invaluable data-driven conclusions, and sales and marketing managers the theories and best practices they need to quantify the value of their products to demanding, hard-nosed industrial purchasers.

With contributions from global industry experts this book provides cutting edge research on value quantification and value quantification capabilities with real-life, practical examples. It will be essential reading for sales and pricing specialists as well as business strategists, in both research and practice.

part |2 pages

PART I Introduction

chapter 1|10 pages

Introduction: Quantifying and documenting value in business markets

ByANDREAS HINTERHUBER, TODD C. SNELGROVE

part |2 pages

PART II Selling value—Value quantication capabilities

chapter 2|13 pages

Interview: Processes and capabilities for value quantication

ByANDREAS HINTERHUBER, ROBERT RUSSELL

chapter 3|11 pages

Muddling through on customer value in business markets?

ByTODD C. SNELGROVE, JAMES C. ANDERSON

chapter 4|10 pages

Interview: Nurturing value quantication capabilities in strategic account managers

ByANDREAS HINTERHUBER, TODD C. SNELGROVE, AND BERNARD L.

part |2 pages

PART III Selling value—Best practices in value quantication

chapter 7|16 pages

Quantifying your value so customers are willing and able to pay for it

ByTODD C. SNELGROVE

chapter 8|12 pages

Best practices for dening, quantifying, and sharing value

ByPEKKA TÖYTÄRI, RISTO RAJALA

part |2 pages

PART IV Buying on value—Value quantication and B2B purchasing

chapter 9|3 pages

Interview: Selling value to purchasing

ByTODD C. SNELGROVE AND BO-INGE STENSSON

chapter 10|15 pages

Using best value to get the best bottom line

ByKATE VITASEK

chapter 12|13 pages

The sourcing continuum to achieve collaboration and value

ByKATE VITASEK

part |2 pages

PART V Value quantication and organizational change management

chapter 13|8 pages

Interview: Implementing value quantication in B2B

ByANDREAS HINTERHUBER AND MATTHIAS HEUTGER

chapter 14|18 pages

Interview: The ring of truth—Value quantication in B2B services

ByANDREAS HINTERHUBER AND PASCAL KEMPS

part |2 pages

PART VI Buying and selling on value—Value quantication tools

part |2 pages

PART VII Epilogue

chapter 18|2 pages

A call to action: Value quantication in B2B buying and selling

ByTODD C. SNELGROVE