Gartner Research

Four Steps to Building Better Pricing by Understanding Value

Published: 04 December 2019

ID: G00407394

Analyst(s): Mike Dorosh, Craig Lowery

Summary

Effective pricing is a cornerstone of service and products go to market, yet many struggle to establish it. By focusing on the wants and needs of the customer and utilizing next-best alternative analysis, product managers can deliver stronger value and achieve greater success in their market.

Table Of Contents
  • Key Challenges

Analysis

  • Step 1: Understand What Customers Value
  • Step 2: Assess Value to Customers
  • Step 3: Determine Value-Based Selling Price
  • Step 4: Communicate the Value Price and Continuously Evaluate Its Effectiveness

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