#VALUE BASED PRICING IN ONLINE SALES HOW TO#

It’s about how they view and value your product. We’ve said a bunch of times already that it’s all about the customer.

Why? Because there are minimal costs required to expand your customer base, whether on an individual basis or more users in a company

If done correctly (with the proper research), you are guaranteed more profit through selling your product with this additional value added on. Once you’ve nailed your perceived value for your specific target audiences, this strategy promises persistent and long-term revenue growth for the future If the aim of the game is to listen to your customers, guess who’s going to get very good customer service reviews? The process behind applying a value-based model helps you to develop a higher quality product as it is purely based on what your customers think, need and want The research needed to implement this pricing model not only contributes to figuring out your price point, but also to your broader knowledge of the industry and market - something that will continue to benefit you further down the line

#VALUE BASED PRICING IN ONLINE SALES HOW TO#

This is how to unlock some hidden revenue 🔐 Every revenue opportunity coveredĬreating price points to suit each segment or target market and their perceived value, meaning more bases are covered and a greater audience can be reached. We’ve already described value-based pricing as potentially a very rewarding strategy, but why is it considered the go-to pricing model for SaaS? Six advantages of value-based pricing for SaaS businesses Some USPs could include having a niche product or service, your brand name already having a lot of value, being the best in your industry, or having top notch service and support available for your customers. Why are you unique? You also need to consider your differentiated worth - what makes you stand out from your competitors or what makes you the obvious choice.This will provide great insight into your pricing strategy plan, particularly if you’re looking to take on value-based pricing as an option. Who are you up against? To get a real sense of your perceived value, it’s essential to research your competitors and what they’re up to (and have been up to historically).How’s the market looking? What’s going on in the marketplace will undoubtedly have an impact on how much your customer will be happy to pay for a product - price it too high at the wrong time or when your competitors are lower, and you won’t see the traction you want.Of course, this segmentation will differ between B2C and B2B, which we will talk about more in a bit. What’s your target audience? You need to fully understand your target audience as a whole, and use segmentation to apply the appropriate value calculations to each type of customer.We take a look into the whos, hows, whats, and whys (literally, just in a different order) that you need to consider before saying a firm ‘yes’ to this type of pricing strategy: If you’re looking into a value-based pricing strategy, there are a few things you need to consider to work out if this is the right option for you.

What to consider with value-based pricing

Value based pricing in online sales