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B2B Pricing: Emotional & Economic Value | OpenView Labs

Getting emotional and economic pricing factors to work together is the black magic of B2B pricing. Both are important and both come together in the customer’s willingness-to-pay.

Willingness-to-pay is something pricing experts talk about a lot. Some people, especially those focused on optimizing pricing by analyzing historical transactions, see willingness-to-pay as something out there to be discovered through data analysis — the modern equivalent of the market price. The goal of pricing experts is to segment the market by willingness-to-pay and then optimize prices for each segment. Those who follow value-based pricing argue that willingness-to-pay is actually based on perceived value, and that by changing the perceived value, or simply by communicating your value more effectively, you can change willingness-to-pay.

Perceived value — what is that? Well, that is where economic and emotional value come together to shape willingness-to-pay (for more detail see the post “You Can’t Price Software Without Focus”). Naturally, more economic value increases willingness-to-pay.

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B2B Pricing: Emotional & Economic Value.

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