Value-based pricing-pricing a product according to its value to the customer rather than its cost-is the most effective and profitable pricing strategy. Buyers need to evaluate the monetary benefits of a product against the price of its competitors. Sellers justify their price points through documenting the value of a product, emphasising its superiority against competitors and therefore justifying the premium price. Value First then Price is an innovative collection which proposes a quantitative methodology to value pricing, and road-tests this methodology through a wide variety of real-life industrial cases. It provides a state-of-the art and best practice overview of how leading companies quantify and document value to customers. In doing so, this book provides researchers with a method by which to draw invaluable data-driven conclusions, and sales and marketing managers the theories and best practices they need to quantify the value of their products to demanding, hard-nosed industrial purchasers. With contributions from global industry experts this book provides cutting edge research on value quantification and value quantification capabilities with real-life, practical examples. It will be essential reading for sales and pricing specialists as well as business strategists, in both research and practice.
Part I: Introduction 1. Introduction: Quantifying and Documenting Value in Business Markets (Andreas Hinterhuber and Todd C. Snelgrove) Part II: Selling Value-Value Quantification Capabilities 2. Interview: Processes and Capabilities for Value Quantification (Andreas Hinterhuber and Robert Russell) 3. Muddling Through On Customer Value In Business Markets? (Todd C. Snelgrove and James C. Anderson) 4. Interview: Nurturing Value Quantification Capabilities in Strategic Account Managers (Andreas Hinterhuber, Todd C. Snelgrove, and Bernard L. Quancard) 5. Salesforce Confidence and Proficiency-The Chief Cornerstone of Effective Customer Value Management (Gary Kleiner) Part III: Selling Value-Best Practices in Value Quantification 6. Value Quantification-Processes and Best Practices to Document and Quantify Value in B2B (Andreas Hinterhuber) 7. Quantifying Your Value so Customers Are Willing and Able to Pay for it (Todd Snelgrove) 8. Best Practices for Defining, Quantifying, and Sharing Value (Pekka Toytari and Risto Rajala) Part IV: Buying On Value-Value Quantification and B2B Purchasing 9. Interview: Selling Value to Purchasing (Todd C. Snelgrove and Bo-Inge Stensson) 10. Using Best Value to Get the Best Bottom Line (Kate Vitasek) 11. Value Selling: The Crucial Importance of Access to Decision Makers from the Procurement Perspective (Rob Maguire) 12. The Sourcing Continuum to Achieve Collaboration and Value (Kate Vitasek) Part V: Value Quantification and Organizational Change Management 13. Interview: Implementing Value Quantification in B2B (Andreas Hinterhuber and Matthias Heutger) 14. Interview: The Ring of Truth-Value Quantification in B2B Services (Andreas Hinterhuber and Pascal Kemps) Part VI: Buying and Selling on Value-Value Quantification Tools 15. A Question of Value: Customer Value Mapping Versus Economic Value Modeling (Thomas T. Nagle and Gerald E. Smith) 16. Why Start-Ups Should Consider Using Value Propositions (Lennart Foos and Markus Kirchberger) 17. Creating and Sustaining Competitive Advantage Through Documented Total Cost Savings (Tim Underhill) Part VII: Epilogue 18. A Call To Action: Value Quantification in B2B Buying and Selling (Todd C. Snelgrove)
