OnDemand WTP Pricing Research

Pricer’s Points: How to successfully move to a Value based pricing model | Martin Wennerblom

Moving into value based pricing give a lot of added benefits for a company in terms of higher margins and better competitive position but the transition must be carefully planned and executed.

In this article I am explaining some of the important steps that should be put in place to successfully move to a value based pricing model and avoid falling into the commoditization trap.

The megatrend of today is the commoditization of most products and product segment and the consequence of this leads to price pressure and thinner margins. Driver of this behavior is of cause that companies recognize there is a market place and they are reacting to this by putting their own products into it as there is money to be made and someone else is paving the way. This is one of the market fundamentals in the market economy.

With two or more players and the extensive production, marketing and sales capacity in the global market space, the race to the bottom has started.

So, what are the options to avoid ending up in this situation?

Read complete blog here:

How to successfully move to a Value based pricing model.

Martin Wennerblom

Business Unit Manager Stoneridge Nordic

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