Home » May / June 2022 » Pricing is the only moment of truth in value capture – Part 2 – How to do it
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Pricing is the only moment of truth in value capture – Part 2 – How to do it

by cyb2025
P. J. F. Gommers
creating value
customer intimacy
differentiation
margin management
Segmentation
sharing value
Value selling

PETER J. F. GOMMERS
Peter4Strategy, Oegstgeest, Netherlands

ABSTRACT

This note (parts 1 and 2) suggests learning from real world examples of value pricing for products and services. It is important to realize that they are the outcome of many years of trying and failing and trying again. An approach in 4 major steps is recommended:

  1. Understanding customer needs
  2. Comparing your own offering versus competitors
  3. Embedding value pricing in a value selling journey
  4. How to create fair sharing as a foundation for long term equitable economic benefits for all parties

The process starts with your belief that you (can) create real value for your customers. The challenge is that what you think the value is may, not be (fully) correct. So, you need to be a little schizophrenic about this. On the one hand fully convinced and driven that you can bring superior value, but at the same time open and self-critical to want to learn what your customer really needs.

HOW TO DO IT

ABOUT THE AUTHOR

Peter Gommers is Director of Peter4Strategy B.V. and has extensive hands-on experience in strategy, M&A, sustainability, innovation, marketing and sales skills.
He has a PhD Biotechnology from Delft and an MBA from INSEAD and has held many Business Manager, transformation manager and innovation roles during his 30 years’ chemical industry experience at AkzoNobel and Nouryon. He has also worked for McKinsey & Co, Banks and Private equity houses.

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