For lower-priced products, value-based pricing is similar to competition-based pricing, while for those higher-priced products, the model shares a lot in common with prestige pricing. For the sake of these examples, let’s imagine a SaaS company that sells a construction management platform. A rep from that business is selling to a local fast-food chain, looking to expand its operations into a new region. One of the most effective ways to provide value to your prospects and customers is to help educate them on a topic of interest. When you take an education-first approach, you become their go-to resource for information which helps you build trust. It resulted in a 124 percent increase in value over the harvest strategy, worth more than $450 million. Company X failed to manage its balance sheet because of its emphasis on the wrong performance metric—return on sales. When it moved to ROIC and value based meaning value creation, it discovered opportunities that had previously been missed. No one could understand why the stock market “didn’t appreciate” the company’s success. Decision making can be heavily influenced by the choice of a performance metric. Qualitative Value-Based Selling Example A value-based care system would rely on this information […]