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Value-based pricing aligns with the concept of perceived value as it involves setting a price based on the customer's price expectations. This means that the price is determined by how much the customer believes the product or service is worth, rather than the actual cost to produce or provide it. This approach can lead to higher profit margins if the perceived value is high.
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Cost-Plus Pricing – the process of simply calculating your costs and adding a mark-up. Competitive Pricing – the process of setting a price based on what the competitors' prices. Value-based Pricing – the process of setting a price based on the customer's price expectations. Price Skimming – the process of setting a higher price and bringing it down as the market evolves. Penetration Pricing – the process of setting a lower price to enter a competitive market and rising it with time.
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Take the most advantageous pricing approach to increase profitability of your organization. Use our Pricing Strategies presentation to outline factors...
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