Competitive Pricing or? Value-Based Pricing

Question

This compares setting prices based on competitors’ pricing strategies (competitive pricing) versus pricing based on the perceived value of the product or service to the customer (value-based pricing).

which is better in the long run?

Anbang Xu · Accepted Answer

Value-based pricing can be a game-changer if your product truly solves a unique problem. However, it's crucial to thoroughly understand your target market and ensure your pricing aligns with the perceived value you're delivering.

Anbang Xu · Answer

Value-based pricing can be a game-changer, especially for unique products or services. It allows you to capture more of the value you create for customers, potentially leading to higher profits and stronger customer relationships.

AnnaHo · Answer

Both have their merits, but value-based pricing tends to be more sustainable long-term as it reflects the true worth perceived by customers.

Mark Lemuel M · Answer

@vaibhavdwivedi yup!

Anbang Xu · Answer

Value-based pricing can be a game-changer, focusing on the unique benefits your product offers rather than just matching competitors. It allows you to capture more of the value you create, potentially leading to higher profits and a stronger market position.

Abdurrahman Yiğit · Answer

I think competitive pricing is a race to the bottom. Since I changed my vision to value-based pricing both me and customers are more satisfied!

Valianto · Answer

use only competitive pricing when the market already fill with many players

Alexander Galitsky · Answer

Dynamic, to get most out of your dear customers!

Mark Lemuel M · Answer

@ag94 ftw!

Vaibhav · Answer

It really depends on the market, product and other factors.

Answer

It depends on your business goals and market conditions. Competitive pricing focuses on setting prices based on competitors' prices, while value-based pricing sets prices based on the perceived value to the customer.

Anmol Momin · Answer

There are multiple factors to look at when deciding which pricing model to choose. 
For Example: if you choose the value-based pricing then how much of a difference there is as compared to the competitors. Much difference can lead to loosing customer even though you provide more value.

Answer

I think value-based pricing is better, it is for mutual satisfaction and benefit, no one is harmed. Price and value depend on the product. This is very objective

Ishan Shah · Answer

Competitive pricing focuses on matching or beating competitors' prices, while value-based pricing sets prices based on the perceived worth to the customer. Value-based pricing can lead to higher profit margins by aligning price with the benefits delivered.

waqas khan · Answer

Value-based pricing certainly seems to have the upper hand in the long run, as it aligns with the customer's perception of the product's worth, allowing for better customer satisfaction and loyalty. While competitive pricing can be useful in certain markets, focusing on the value you provide tends to create a more sustainable and profitable business model.

Competitive Pricing or? Value-Based Pricing

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