Competitive Pricing or? Value-Based Pricing

Dynamic, to get most out of your dear customers!

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

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

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.

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.

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!

I think value-based pricing is better for SaaS products in the long run. It aligns pricing with customer value, allowing for higher profit potential and better differentiation. This approach incentivizes product improvement, supports premium brand positioning, and can lead to more muscular customer retention. Unlike competitive pricing, it avoids unsustainable price wars, allowing for more strategic, value-driven growth.

Value-based pricing for sure. Gotta maximize that customer LTV! But it's tricky to nail down the optimal price points. Any pricing tools or tactics you've found effective for maximizing revenue per customer without pushing them away? I'm thinking of experimenting with some dynamic pricing algorithms but not sure where to start.