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How Value-Based Pricing Can Boost Revenue & Profitability

 
  John W. Braine, Partner, CFO Edge, LLC  
   
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  Article Summary  
A closer look at the two main pricing approaches for products and services - cost-plus pricing and value-based pricing - helps in understanding the differences, as well as how value-based pricing can boost revenue and profitability.

Correct pricing carries an ever-present challenge: too-high pricing risks not selling enough, and too-low pricing risks not earning desired margins and profitability.

While cost-plus pricing is simpler and addresses costs and profit, value-based pricing is a more strategic approach that supports opportunities for greater profitability and revenue growth.

Value-based pricing is a shift from what your offerings cost to a customer-centric approach: what are they worth to your customers?

Los Angeles and Southern California executives deliberating the why's and how's value-based pricing can benefit from talking with a provider of outsourced CFO services.

An on-demand CFO can assess current pricing strategy effectiveness, help identify unique selling propositions that convey added value, and recommend a value-based pricing strategy that can increase sales, profitability and long-term growth.

  Open as PDF Open the entire article as a downloadable PDF (No form completion is requested.)  
     
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