Value price It is a strategy used by companies with a high value product or service. The strategy is to sell the high-value product or service at a low-value price. Note: this price should not be less than cost, but rather than what the customer would perceive as a low price.

Customer perceptions are influenced by the value they perceive in the relationship between the attributes of the product or service and the price they will have to pay for that product or service. Customers are also influenced by the price comparison between similar products or services.

Often times, this value pricing strategy is used for products or services in their mature or declining life cycle stage; because at this stage of their product life cycle, hopefully, they have already built a strong brand identity. Use the features, benefits and benefits of your product or service to generate value. Make those features, benefits and benefits unique and cannot be easily duplicated. But look to incorporate unique features and benefits into your products and services that are low-cost and have some economies of scale.

Since you are presumed to have been producing this product or providing your service for some time (the product or service is in its mature or declining stage of its product life cycle), you need to look at how you are delivering the product or service. and try to find reengineering methods or ways to improve production and delivery costs. However, do not reduce the value of your product in your efforts to reduce your costs.

Once you’ve developed a low-cost strategy for your high-value product or service, create a strong promotional program that focuses on brand identity, key values, and the benefits of those values, and sell them to your market.

Prices of perceived value It is a strategy that is a variation of the price of value. This strategy is best used if pricing is set within a product line and if one product strengthens another or other products in the line. Your customers’ perception of the entire product line offering will affect how they view the price of one of the products in the line. Selling products or services of perceived value can be accomplished by doing a cost comparison for your customer.

For example, if you sell luxury cars through lease programs, you can include pickup and drop-off at the time of lease and return; four free maintenance services, including pickup and delivery; a service time guarantee (on regular service items); etc. Your competition does not offer any additional services. You promote value in your offering and cost you that value (four free maintenance services are worth $ 400, pickup and delivery are worth the time saved by the customer, and more).

Pricing can be both art and science, but make it more scientific (more measurable, more results-oriented, more verifiable). Consider your customers, your competition, your market, and your product or service offering when creating your pricing strategy. The example above is quick and easy, but there are many other good applications for using perceived value pricing as long as you can promote and show the value to your customers (and your customers accept that value as real).